2.9Mtpa Meekatharra Expansion Plan

About this update from Westgold Resources Ltd

Scoping Study outlines staged, capital-efficient brownfields option to unlock additional Meekatharra ore supply and improve future cash generation PERTH, Western Australia, Aug. 25, 2026 /CNW/ -- Westgold Resources Limited (ASX: WGX) (TSX: WGX), Westgold or the Company ) is pleased to report the results of a Scoping Study assessing a brownfields expansion of processing capacity at the Meekatharra hub from 1.8Mtpa to 2.9Mtpa (Meekatharra Expansion Plan or MXP). The study outlines a potential capital-efficient pathway to process additional emerging ore supply, lift future gold production, reduce processing unit costs and improve cash generation, subject to completion of feasibility-level technical, economic and approvals work. MXP is being advanced as a low-capital-intensity, brownfields expansion option that leverages Westgold's existing Meekatharra infrastructure and long-lead equipment already procured. The preferred pathway is intended to remove an emerging processing constraint and create a larger, more flexible platform for the Murchison ore base, without the cost, risk or timeframe of constructing a new standalone processing plant. Processing Expansion to 2.9Mtpa The MXP Scoping Study outlines a capital-efficient pathway to increase Meekatharra hub throughput capacity from 1.8Mtpa to 2.9Mtpa in FY28, potentially adding approximately 47kozpa of gold production once commissioned. The MXP comprises installation of a parallel crushing and single-stage SAG milling circuit integrated with the existing downstream leach, adsorption and gold recovery infrastructure. The MXP is predicated upon the increasing volume of ore supply available to Westgold at Meekatharra. Increasing outputs from the nearby Bluebird–South Junction underground and a range of open pits being developed across Westgold's Murchison Open Pit program is diversifying baseload ore sources and lifting plant utilisation, throughputs and metallurgical recovery from this processing hub. Value Uplift The MXP is a capital-efficient option to convert more of Westgold's existing and future Meekatharra mineral resources into mill feed, lower processing unit costs and strengthen Group free cash flow across its strategic outlook. Its value will be progressively confirmed through feasibility-level work, ore source validation, capital estimate refinement and execution planning now underway. Highlights MXP expands Meekatharra hub throughput from 1.8Mtpa to 2.9Mtpa  MXP adds ≈ 47kozpa to baseline production once commissioned for total gold production of 1.6Moz over 10 years (an increase of 424koz) Brownfields resource definition drilling and open pit optimisations commenced – opportunities proximate to Meekatharra hub support the expansion case Key MXP Scoping Study outputs include: Cautionary Statement The Scoping Study referred to in this report is based on low-level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. The information in this announcement relating to processing expansion concepts, study outcomes, resource definition work, potential brownfields opportunities and indicative financial metrics is based on preliminary internal and consultant study work. The MXP study is at Scoping Study level and associated capital estimates are described as having estimate accuracy of ±35%. The expansion study is also preliminary in nature. The financial metrics presented in this announcement are indicative study-stage ranges only, are provided to illustrate the potential scale of the opportunities under internal development scenarios and should not be interpreted as a Final Investment Decision or an Ore Reserve statement. Any future public reporting of Mineral Resources, Ore Reserves or forecast financial information will be made in accordance with the ASX Listing Rules and the JORC Code (2012), where applicable. The Scoping Study is based on the material assumptions outlined below. These include assumptions about the availability of funding. While Westgold considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved. The Meekatharra hub Production Target comprises 31% Ore Reserves, 44% Measured and Indicated Mineral Resources, 14% Inferred Mineral Resources and 11% third-party production. Third-party ore is supported by existing binding ore purchase agreements. No unclassified Westgold material is included in the Production Target. Inferred Mineral Resources are not scheduled until FY35, after forecast recovery of the expansion capital. Mining areas within the production target are available for ongoing resource definition and eventual mining. The forecast capital payback period of approximately nine months occurs before any scheduled processing of Inferred Mineral Resources. Recovery of the expansion capital is therefore supported by Ore Reserves, Measured and Indicated Mineral Resources, existing stockpiles and contracted third-party ore included in the initial production schedule. Westgold considers that it has reasonable grounds for the forecast payback period and associated financial information based on the material assumptions disclosed in this announcement. Westgold confirms that the MXP remains financially viable at Scoping Study accuracy when Inferred Mineral Resources are excluded from the production schedule. The Company therefore considers that it has reasonable grounds for the production target and forecast financial information, having regard to the material assumptions disclosed in this announcement. There is a low level of geological confidence associated with Inferred Mineral Resources, and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources for the current Inferred portion, or that the production target itself will be realised. While Westgold considers all the material assumptions used in the Scoping Study to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved. To achieve the range of outcomes indicated in the Scoping Study, funding in the order of $100M will likely be required. Investors should note that there is no certainty that Westgold will be able to raise that amount of funding when needed. The Company as at 30 June 2026 had $939M of cash, bullion and liquid investments (refer ASX – 22 July 2026, June 2026 Quarterly Report). Additionally, Westgold announced it had executed a commitment letter with its existing lenders to increase its Syndicated Facility Agreement to $600M. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study. Westgold Managing Director and CEO Wayne Bramwell commented: "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. 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." Meekatharra Expansion Project (MXP) – 1.8Mtpa to 2.9Mtpa Meekatharra is reaching an important strategic inflection point, with the ramp-up of Bluebird-South Junction, the restart of the Murchison open pit program and ongoing brownfields evaluation strengthening the future ore supply base and increasing the importance of available processing capacity. MXP has been designed to address this emerging constraint by increasing installed processing capacity at Meekatharra from 1.8Mtpa to 2.9Mtpa. The preferred pathway is a brownfields expansion comprising a parallel crushing and single-stage SAG milling circuit integrated with the existing downstream leach, adsorption and gold recovery infrastructure. This configuration is expected to maximise the use of existing plant, services and infrastructure, while reducing the capital intensity, execution complexity and development timeline associated with constructing a new processing plant. The preferred configuration also utilises long-lead equipment previously procured for the Higginsville Expansion, which is now being reviewed as a larger-scale, single-stage expansion1. The MXP would establish a larger and more flexible processing platform capable of accommodating a broader blend of underground, open pit and supplementary ore sources from across the Meekatharra region ( Figure 1 ). MXP Scoping Study Summary Note that all Scoping Study values represented are mid-point. Ranges are provided in Table 1.   An indicative comparison between the midpoints of the MXP and current operating plan (without MXP case) is shown below in Table 1  (gold price $5,500/oz). This highlights the substantially improved economics and processing capability within the region at only a slight reduction in grade. Table 1: Comparison between MXP and Current Milling Arrangement (no MXP) Preliminary Financial Overview The key physical and financial metrics in Table 2 and 3  below are presented as indicative study stage ranges reflecting the preliminary nature of the current work, including scoping-level estimate accuracy, study assumptions and internal scenario sensitivity. They are shown to illustrate the potential scale of value creation from the expansion pathway and should not be interpreted as a Final Investment Decision.  The production targets outlined in Table 2  below are at a Scoping Study level and should be read together with the cautionary statements in this announcement.  Table 2: Key Physical Assumptions A gold price of $5,500/oz has been used to assess the indicative economics of the MXP, which is forecast to generate a project NPV of approximately $1.9B. Table 3: Financial Results Summary Sensitivity Analysis Figure 2 depicts sensitivity analysis for MXP. It shows that while sensitive to gold price, the project NPV is resilient to both discount rate and cost. MXP Basis for Production Target The Production Target outlined in the Scoping Study is based on a mixture of Ore Reserve and Mineral Resources across the Murchison and, as described in Figure 3,  is a blend of underground, open pit, stockpile and potential supplementary ore sources across the Meekatharra hub and broader Murchison operating area. Ongoing drilling to convert the Mineral Resources into Ore Reserves is ongoing across the Murchison as part of the FY27 Resource Definition program (refer Figure 1 ). This program includes: MXP Capital Costs The Scoping Study-level capital estimate ( Table 4 ) for MXP has been determined at approximately $65M-$100M  with estimate accuracy of ±35%, derived based on mechanical equipment lists from several sources such as quotes, and actual prices used from Westgold's current operating mines. Whilst overall contingency has been determined as a single line-item related to the total cost, additional contingency has been built into the individual cost estimates reflecting the high-level scoping nature of the study. Table 4: Capital Cost Estimate – MXP Risks, Study Maturity and Mitigation Pathway As with any processing expansion at this maturity, the Project remains subject to the risks and uncertainties typical of study-stage brownfields developments. For MXP, the principal variables include refinement of capital estimate accuracy, tie-in design, infrastructure confirmation, procurement of key secondary equipment (as the key processing equipment, the crusher and the SAG mill have already been purchased), construction scheduling and management of commissioning risk while maintaining continuity of operations. Murchison Brownfields Growth Opportunities  Westgold's Murchison portfolio includes multiple mature assets that could deliver incremental open pit ore sources into existing regional operating centres. With disciplined capital allocation these opportunities will be progressively tested through resource definition, mine design and economic evaluation. These opportunities are all located within the broader Murchison operating footprint and sit within relatively short haulage distances of Westgold's Cue and Meekatharra processing hubs. Each area also benefits from historical mining activity, existing or legacy infrastructure and established geological knowledge, making them attractive brownfields targets for further evaluation. As an example, at Paddy's Flat near Meekatharra ( Figure 4 and Figure 5 ), the current resource definition focus is on assessing historically productive corridors for remnant mineralisation, strike extensions and shallow targets that may support staged open pit cutbacks, satellite open pits or otherwise incremental ore sources for the Meekatharra production base. Drilling has begun in the Paddy's North area with the focus the northern extensions of Halcyon and Democrat pits . These phases of work will test the continuation of the Prohibition strike to the North targeting the historical Halcyon and Democrats pits which has been untested since mining ceased in the 1990s. The Halcyon pit produced approximately 500kt at 3.6g/t Au for 58koz , while the historical Democrat pit produced approximately 192kt at 3.3g/t Au for 20koz . Following completion of drilling along the Big Bell South line of lode at Cue, the drill rigs are expected to be mobilised to the broader Paddy's Flat area. Next Steps MXP and the Murchison brownfields resource definition program together provide a capital-efficient pathway to grow the Meekatharra hub. Lifting installed capacity from 1.8Mtpa to 2.9Mtpa in FY28 through existing infrastructure is expected to deliver higher gold production, lower processing unit costs and improved free cash flow, without the capital intensity or execution timeline of a new plant. Next-stage work will focus on detailed feasibility study and front-end engineering design, procurement planning, vendor engagement and execution sequencing, including shutdown scheduling and securing long-lead items where appropriate. Study maturity will continue to be advanced ahead of any investment decision. Westgold will also continue its brownfields resource definition program, testing potential future ore sources against haulage distance, mine design, processing fit and capital intensity to support sustained utilisation of the expanded plant. Westgold expects to incorporate MXP as part of its next strategic outlook, with FY28 currently used as the indicative production timing for planning purposes. This timing is preliminary and remains subject to feasibility-level studies, capital estimate refinement, execution planning, ore source confirmation and any required investment decision. This announcement is authorised for release to the ASX by the Board. Compliance Statements  Competent/Qualified Person Statements   Exploration Results and Mineral Resources Estimates   The information in this release that relates to Exploration results and Mineral Resource Estimates is compiled by Westgold technical employees and contractors under the supervision of Mr. Jake Russell B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists and who has verified, reviewed and approved such information. Mr Russell is a full-time employee of the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code") and as a Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Russell is an employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr Russell consents to and approves the inclusion in this release of the matters based on his information in the form and context in which it appears. Mr Russell is eligible to participate in short- and long-term incentive plans of the company.  Ore Reserves   The information in this release that relates to Ore Reserve is based on information compiled by Mr. Leigh Devlin B.Eng. FAusIMM, who has verified, reviewed and approved such information. Mr. Devlin has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person as defined in the CIM Guidelines and NI 43-101. Mr. Devlin is an employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr. Devlin consents to and approves the inclusion in this release of the matters based on his information in the form and context in which it appears. Mr. Devlin is a full-time senior executive of the Company and is eligible to and may participate in short-term and long-term incentive plans of the Company as disclosed in its annual reports and disclosure documents.  General   Mineral Resources, Ore Reserve Estimates and Exploration Targets and Results are calculated in accordance with the JORC Code. Investors outside Australia should note that while Ore Reserve and Mineral Resource estimates of the Company in this announcement comply with the JORC Code (such JORC Code-compliant Ore Reserves and Mineral Resources being "Ore Reserves" and "Mineral Resources" respectively), they may not comply with the relevant guidelines in other countries. The JORC Code is an acceptable foreign code under NI 43-101. Information contained in this release describing mineral deposits may not be comparable to similar information made public by companies subject to the reporting and disclosure requirements of US securities laws, including Item 1300 of Regulation S-K. All technical and scientific information in this release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and has been reviewed on behalf of the Company by Qualified Persons, as set forth above.  This release contains references to estimates of Mineral Resources and Ore Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may require re-estimation based on, among other things: (i) fluctuations in the price of gold; (ii) results of drilling; (iii) results of metallurgical testing, process and other studies; (iv) changes to proposed mine plans; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses.  Forward Looking Statements   These materials prepared by Westgold Resources Limited include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "believe", "forecast", "predict", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding the Company's 3YO, including estimates of gold production, grades, recoveries and its expectations regarding AISC, the timing of updates to Mineral Resource estimates or Ore Reserves, plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.  Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.  Forward looking statements are based on the Company's and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control.  Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. In addition, the Company's actual results could differ materially from those anticipated in these forward looking statements as a result of the factors outlined in the "Risk Factors" section of the Company's continuous disclosure filings available on SEDAR+ or the ASX, including, in the Company's current annual report, half year report or most recent management discussion and analysis.  Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances.  Appendix 1: Mineral Resource Basis The Mineral Resource and Ore Reserve based on MXP is shown below. This is based on the current statement provided by Westgold on 20 August 2026 – 2026 Mineral Resource Estimate and Ore Reserves. Table 5: Ore Reserve Statement Table 6: Mineral Resource Statement Appendix 2: MXP Technical Detail and Assumptions The process design basis for MXP is built around Westgold's established Meekatharra processing plant. The existing plant configuration comprises primary and secondary crushing, stockpile and reclaim, conventional SAG milling with recycle pebble crushing, parallel ball mills in closed circuit with cyclone classification, gravity recovery, leach and adsorption, elution and gold recovery, carbon regeneration and final tailings disposal. The MXP philosophy has therefore been to add incremental comminution capacity and selected downstream debottlenecking while preserving as much of this installed base as possible. The key equipment selection includes: Under the selected concept, new ROM feed is directed to a dedicated crushing installation comprising an ore bin, apron feeder, vibrating grizzly and a primary jaw crusher. The crusher selection is based on a jaw crusher with 185kW installed power, sized for the anticipated lump feed conditions and intended to operate with scalped feed to reduce wear and improve duty continuity. Crushed ore reports to a surge bin and overflow to a dead stockpile capable of providing surge capacity. This arrangement is important from an operating standpoint as it decouples crusher duty from SAG feed continuity and provides practical resilience in a brownfields plant setting, where interruptions to one area should not immediately destabilise the entire circuit. Downstream of crushing, the new single-stage SAG circuit has been sized at approximately 1.1Mtpa and modelled to produce a P80 of around 95 microns. The selected mill duty is based on a SAG mill fitted with a 3,600kW variable speed drive. Cyclone classification is based on a 12-pack with duty and standby allocation consistent with brownfields operating reliability requirements. Notably, the selected flowsheet does not require a recycle pebble crusher at the nominated design duty, although the study materials deliberately preserve layout optionality for future installation should coarser grind targets or harder ore blends justify that addition in later years. A separate gravity stream based on a Knelson concentrator and Acacia reactor has been selected to manage gravity recoverable gold from cyclone underflow while simplifying overall operating complexity. Downstream, the combined flowsheet requires selected leach and adsorption changes, including allowances for additional tankage to preserve residence time, plus replacement or upgrade of screens and elution duties that would otherwise sit near or above their original design limits under the expanded throughput case. The main cost categories identified in the underlying study are labour, power, maintenance, reagents and consumables. Study work identifies an increase in both operations and maintenance headcount, including additional operators, gold room coverage, maintenance planners and trade support. At Meekatharra underground mining is done via longhole open stoping at Bluebird-South Junction. A significant Open Pit program has been assumed within the Scoping Study with truck and shovel mining the chosen methodology. Cut-backs on these pits have been assumed utilising current costs supplied by external operators alongside Westgold's own internal costing regime. Wall angles, bench heights, and berm widths are based on a mixture of historical mining within these pits as well as geotechnical recommendations supplied by external consultants. Dilution and ore loss aligns with historic mining within the area. Open Pit mining is currently underway at the time of writing across the Murchison region as outlined in the 3-Year Outlook. Modifying factors such as minimum mining widths, dilution, cut-off grades, stope and bench sizes and ore loss, are all included within the Scoping Study and based on current experience at the existing operating mines. Westgold has carried out processing at the Meekatharra mill since 2016. The production target identified in the Scoping Study assumes processing recoveries consistent with current achievements. It is assumed that any increase in throughput at the Meekatharra mill as determined within the Scoping Study will not adversely affect the recovery of the processed material. Appendix 3 – JORC 2012 Table 1– Gold Division SECTION 1: SAMPLING TECHNIQUES AND DATA (Criteria in this section apply to all succeeding sections.) SECTION 2: REPORTING OF EXPLORATION RESULTS (Criteria listed in the preceding section also apply to this section.) SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES (Criteria listed in section 1, and where relevant in section 2, also apply to this section.) SECTION 4: ESTIMATION AND REPORTING OF ORE RESERVES (Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.) View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2026/24/c7512.html

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