Westgold Resources Limited Annual Report 2020

29 Westgold Resources Limited Annual Report 2020 Mining output is currently dominated by the Starlight underground mine which produces at a rate of approximately 600,000 tonnes per annum. This ore is blended with low grade stocks sitting free on surface to make up a blended plant feedstock. A procession of open pit mines sit ready to replace the low grade feedstock with the site having a visible mine life expectation in excess of 6 years. The increase in the gold output and associated increase in the gold price resulted in an increase in revenue to $130,688,889 (2019: $103,989,696). Segment profits also increased to $33,236,970 (2019: $15,722,413). Gold output for the year was 60,839 oz at a C1 Cash Cost of $1,077 per ounce and an all-in sustaining cost (AISC) of $1,308 per ounce as disclosed in the table on page 31. FGO has a number of exploration targets in addition to its current ore resource and reserves which should underwrite sustainable gold production at the operations, including: – Extensions to the Starlight underground mine where a structural geology study undertaken by industry-leading structural geology experts are defining the keys controls driving Starlight mineralisation and associated targets. – Resource development work to support the return of open pit mining in the area in subsequent years. This will include final definition works on extensions to the major past producers of Yarlarweelor, Nathan’s and Labouchere, as well as pre-grade control works on the new Regent and Messiah deposits. – Conceptual exploration at Peak Hill with a view to proving an alternative ore sources that can be trucked to either the Fortnum or Bluebird (MGO) processing plants. Meekatharra Gold Operations (MGO) MGO is located around the regional towns of Meekatharra and represents the central group of assets in the Central Murchison region. These consolidate the considerable historic gold mining centres of Meekatharra North, Paddy’s Flat, Yaloginda, Nannine and Reedy’s. MGO hosts the Bluebird CIP processing hub (approx. 1.6 million tpa on blended feedstock) and associated infrastructure including a 350 person workers village. Bluebird is located at the center of the Group’s overall Murchison tenure and is the largest and lowest cost of the Group’s processing plants and consequently can accommodate ore feed from any of the region’s mines. The main mine within the MGO output is the Paddy’s Flat underground mine which the Company has now been operating for four years. The smaller South Emu-Triton underground mine at the Reedy’s gold mining center and the newly started Bluebird underground mine at Yaloginda just 1km south of the Bluebird Plant provide supplementary mill feed. These three underground mines combine to deliver more than 100,000oz per annum to the Bluebird processing plant over the long term. Underground ores are supplemented by a procession of smaller open pits, primarily cut-backs which have become economically viable as the gold price has risen. In FY2021 open pit mining will occur at the Five Mile Well, Maid Marion, Albury Heath and Aladdin open pits. Gold output increased and revenue improved to $211,570,622 (2019: $167,960,218). Segment profits increased to $8,379,385 (2019: Loss of $20,392,555). Gold output from the operation for the year was 104,088 ounces at a C1 Cash Cost of $1,171 per ounce and an all-in sustaining cost of $1,496 per ounce as disclosed in the table on page 31. The primary exploration focus in the region is the continual definition of extensions to these mines, as well as the progression of the next round of underground projects to be developed including the Aladdin mine (at Nannine), and Boomerang and Rand mines (at Reedy’s) which could add significantly to the Group’s output. They are high-quality underground exploration targets proximal to existing historic mining centers and provide the option of leveraging the benefits of existing infrastructure.