Westgold approves A$145m Higginsville mill expansion
Gold miner Westgold Resources has approved a final investment decision to expand its Higginsville processing hub in Western Australia, increasing throughput capacity and boosting production from its Southern Goldfields operations.
The ASX- and TSX-listed company on Tuesday announced board approval for the Higginsville Expansion Plan, committing A$145-million to expand the processing facility from 1.6-million tonnes a year to a nominal 2.6-million tonnes a year.
The decision follows completion of a definitive feasibility study (DFS) confirming the technical and financial viability of the project.
Once completed, the expansion is expected to lift gold production in the Southern Goldfields by about 60 000 oz/y while reducing processing costs by about 24% to $34/t.
The DFS estimates the project will deliver a pretax net present value of A$1.4-billion at a gold price of A$4 905/oz, rising to A$2.7-billion at a spot price of A$7 305/oz. The study outlines a pretax internal rate of return of 43% at A$4 905/oz, increasing to 140% at spot prices, with a payback period of 21 months.
The upgraded processing circuit will include a new primary crusher, a 5.8 MW semi-autogenous grinding mill, a pebble crusher and additional leaching and adsorption tanks. The design will also allow for a potential future expansion to four-million tonnes a year.
MD and CEO Wayne Bramwell said the expansion would strengthen the company’s processing capacity as production from the Beta Hunt mine continued to grow.
“By expanding the Higginsville mill capacity we are creating a more productive, lower-cost processing hub to match the growing outputs from our Beta Hunt mine. This will see us deliver higher group gold production at a lower cost, in line with our three-year outlook.
“The DFS highlights the strength of the business case. It is underpinned by increasing annual gold production and a step-change reduction in processing unit costs – all within a short payback period.
Bramwell noted that, strategically, the HXP had been designed with future growth in mind.
"While nameplate capacity of the enhanced flowsheet stands at 2.6-million tonnes a year, many of the upgrades within the flowsheet such as the ore conveying systems, jaw crusher and SAG mill apron feeder are designed to support further expansion to four-million tonnes a year. This ensures milling capacity is not an impediment to future mine expansions at prospects such as the Fletcher and Mason Zones at Beta Hunt.
With the study complete and FID approved, Westgold's focus now shifts to securing long-lead items, progressing EPC tendering and maintaining operational continuity throughout the build.
"The timing of the HXP aligns strategically with the anticipated growth in mining rates from the Southern Goldfields, ensuring that expanded processing capacity is ready to accommodate increased ore delivery from Beta Hunt.”
Expanded production from the Higginsville processing hub is expected from mid-2028.
