Westgold Resources Limited has released a scoping study evaluating a brownfields expansion of its Meekatharra processing hub in Western Australia, shifting from the current 1.8 million tonnes per annum operating configuration to target 2.9 million tonnes per annum by fiscal 2028.

The study outlines a capital-efficient pathway to remove an emerging processing constraint at the Meekatharra hub, lifting processing capacity by approximately 61%. Under the expansion plan, Westgold would install a parallel crushing and single-stage SAG milling circuit integrated with existing downstream leach, adsorption and gold recovery infrastructure. The proposal utilizes long-lead equipment previously procured for the Higginsville Expansion, avoiding the capital intensity, execution risk and extended timeframe of constructing a new standalone processing plant.

Compared to the current operating plan without expansion, the Meekatharra Expansion Plan delivers a substantially higher project net present value of $1.9 billion versus $0.8 billion and materially increased free cash flow of $3.2 billion versus $1.3 billion at a $5,500 per ounce gold price. The operation would process a larger tonnage throughput of 27.6 million tonnes mined at 2.0 grams per tonne gold for 1.8 million ounces recovered, compared to 18.2 million tonnes mined at 2.2 grams per tonne gold for 1.2 million ounces recovered under the baseline operating plan.

The scoping study estimates total capital expenditure of approximately $100 million, representing the upper end of a $65 million to $100 million range, with a targeted commissioning date in fiscal 2028 and an estimated payback period of nine months. The expansion is designed to process an increasing volume of ore supply from the region, supported by ongoing scaling at the Bluebird-South Junction underground mine and open pit developments across the Murchison region.

“Meekatharra is the growth engine of Westgold's Murchison business. As Bluebird–South Junction continues to expand and the Murchison open pit program ramps up, the hub is increasingly moving from being mine-constrained to processing-constrained.”

“The MXP is a capital-efficient brownfields expansion option to address this emerging constraint. It utilises existing infrastructure and long-lead equipment already procured to increase processing capacity from 1.8Mtpa to 2.9Mtpa, without the capital intensity, execution risk or timeframe of building a new plant.” — Wayne Bramwell, Managing Director and CEO

Westgold has operated processing facilities at the Meekatharra mill since 2016. Underground output at Bluebird-South Junction has scaled significantly, moving from approximately 250,000 tonnes per annum in fiscal 2022 to an exit run-rate exceeding 1.0 million tonnes per annum by the end of fiscal 2026.

“The MXP provides a pathway to unlock emerging ore supply, increase gold production, reduce processing unit costs and lift free cash flow. Westgold will now commence feasibility-level work to confirm the engineering, capital estimate, delivery schedule and ore source assumptions ahead of a potential MXP investment decision in late FY27.” — Wayne Bramwell, Managing Director and CEO

Feasibility-level technical, economic, and approvals work will now be advanced to test the engineering and capital assumptions ahead of a potential investment decision in late fiscal 2027.

Read the full announcement: 2.9Mtpa Meekatharra Expansion Plan