Westgold Resources Limited - Process Engineering Study Awarded for Central Murchison

08:24 AEST Nov 25, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Westgold Resources Limited (ASX:WGR) ('Westgold') is pleased to announce that it has appointed GR Engineering Services (GRES) to undertake the Processing and Surface infrastructure study for the Central Murchison Gold Project.

GRES is an experienced and highly regarded engineering company with a solid track record in relation to the design and construction of the type and scale of the proposed gold processing facility to be located at the site of the previous Big Bell gold plant. Significant infrastructure remains in place at the site of the previous plant which will be utilised in the recommencement of operations.


Update on Definitive Feasibility Study

- Westgold has identified 19 open pit mineral resources capable of being mined and included in the final production schedule

- 3 significant underground mines at Big Bell, Great Fingall and Golden Crown

- Finalising work on historic tailings - Indicated Resource 3.39Mt @ 0.70 g/t, potential for early gold production

- Environmental studies underway

- Total Identified Mineral Resource for CMGP 2Moz Au

A consolidated production schedule for the project has been completed. The plant and surface support infrastructure design works to be completed by GRES will allow for the optimisation of operating and capital cost estimates for the various ore sources and types. The design works are expected to be completed by the end of the March quarter 2012.

Westgold's CMGP strategy is to establish a central processing facility which will cater for blending of multiple ore sources with the objective of commencing with open pit and tailings material in the initial 2-3 years whilst access to the three underground mines is established. Forecast annual production is expected to increase from an initial 50Kozpa to 100+Kozpa as the high grade underground ore becomes the main source for the project in steady state.


About Westgold Resources Limited:

Westgold Resources Limited (ASX:WGR) has established the strong platform to build Australia’s next mid-tier Gold producer targeting production of 200,000 ounces per annum. This will be sourced from two main production centres located within two geological provinces which have historical combined production in excess of 10 Million ounces of gold.

The key projects are the Rover 1 Gold-Copper Project in the Northern Territory and the Central Murchison Gold Project in Western Australia which contain a 3 Million ounce gold equivalent resource base in aggregate. Both projects hold significant underlying exploration potential which will see the company well positioned to advance to production and build a project pipeline leveraging shareholder value from long life projects with established infrastructure.

The Company is building near term gold production from an integrated open pit and underground mining operation at the brown fields Central Murchison Gold Project (CMGP) and will move to develop a decline access to the Rover 1 deposit over the next 12 months.



Contact:

Scott Huffadine
Managing Director
Westgold Resources Limited

Andrew Beckwith
Director - Exploration
Westgold Resources Limited

T: +618-9326-5700
E: admin@westgold.com.au
http://www.westgold.com.au