06:30 AM EDT, 04/28/2025 (MT Newswires) -- Westgold Resources ( WGXRF ) on Monday provided a summary of the scoping study into a potential expansion of the Higginsville processing plant from 1.6 million tonnes per annum to 2.6 Mtpa.

The scoping study looked into reducing the operating cost per tonne of a large facility that can be further expanded as resource opportunities grow. The project increases steady state gold production at Higginsville from 87,000 ounces per annum to 122,000-160,000 ounces per annum. The expansion is also expected to reduce current processing costs from around $36/tonne to $33/tonne, and the Southern Goldfields midpoint all-in sustaining cost by A$142/ounce.

The project has modest midpoint capital requirements of around A$92 million, largely funded from the A$85 million sale of Lakewood. It also has a midpoint internal rate of return of 37%, with a midpoint payback of 2.1 years, and cash flow of up to $279 million at A$3,200/ounce gold price.

The company expects to commence a detailed engineering study to support a financial investment decision in the fiscal year 2026.