Westgold Resources Limited (ASX: WGX) (TSX: WGX) reported a substantial expansion in its gold inventory for FY26, with total Ore Reserves rising 41% to 4.1Moz and Mineral Resources increasing 8% to 14.4Moz as of June 30, 2026. The growth was achieved organically through exploration and resource development activities across its Western Australian portfolio, despite the divestment of non-core assets totaling 3.0Moz during the year.

The company maintained its approximately 10-year Reserve life at current installed processing capacity levels. Average Ore Reserve grade improved by 15% year-on-year to 2.22g/t Au, while the average Mineral Resource grade rose to 2.30g/t Au. This indicates that the inventory growth was driven by the conversion of higher-confidence, higher-grade resources rather than the addition of lower-quality ounces.

Key Inventory Metrics

*Note: Prior year figures are adjusted for non-core asset divestments.

What the Numbers Show

The efficiency of Westgold's organic growth strategy is evident in the cost metrics. The company generated approximately 1.5Moz of gross Ore Reserve additions from exploration and resource development expenditure of roughly $42M, resulting in a reserve conversion cost of just $27/oz. This stands in contrast to the typically higher costs associated with inorganic acquisitions. Furthermore, the proportion of Measured and Indicated Resources within the total inventory increased to 62.6% from 56.6% in FY25, signaling enhanced confidence in the resource base available for future conversion into Ore Reserves.

Operational Highlights

The maiden Fletcher Ore Reserve at Beta Hunt contributed 1.1Moz to the year-on-year Ore Reserve growth. In the Murchison region, operating mines added 329koz to Mineral Resources post-depletion, while Southern Goldfields operations saw a 699koz increase.

Key movements included:

• Expansion of the Bluebird-South Junction Mineral Resource at Meekatharra (+137koz)
• Expansion of the Starlight Mineral Resource at Fortnum (+100koz)
• Reduction of Big Bell Ore Reserve following remnant cave re-evaluation (-166koz)

Mining depletions impacted larger mines, including Starlight (-79koz), Bluebird-South Junction (-63koz), Big Bell (-69koz), and Beta Hunt (-103koz).

Forward Outlook

Westgold plans to invest between $50M and $75M in exploration and resource development drilling in FY27. With 26 drill rigs currently active across the portfolio, the focus remains on converting Mineral Resources to Ore Reserves and extending mine lives. Near-term efforts will target opportunities capable of bringing value forward in the operating plan, including potential open-pit sources, while medium-term work continues at Big Bell South, Paddy’s Flat, and Cuddingwarra.

Westgold Resources Limited (ASX: WGX) (TSX: WGX) has declared a maiden Ore Reserve of 13.5Mt at 2.6g/t Au for 1.1Moz at the Fletcher deposit within its Beta Hunt mining complex in Western Australia. The declaration, supported by a Pre-Feasibility Study and completed mine planning, establishes a substantial new mineable inventory that materially enhances the confidence in Fletcher becoming a third mining front at Beta Hunt.

The company also released an updated Mineral Resource for Fletcher, which increased by approximately 30% to 40.1Mt at 2.3g/t Au for 3.0Moz. This update includes a 426% increase in Indicated Mineral Resource ounces to 1.55Moz at 2.7g/t Au. Approximately 74% of the updated Indicated Mineral Resource ounces have converted into the maiden Ore Reserve.

What the Numbers Show

The conversion rate of Indicated Mineral Resources to Ore Reserves at Fletcher stands at 74%, a high degree of geological confidence for a maiden reserve declaration. The Ore Reserve grade of 2.6g/t Au is notably higher than the total Mineral Resource grade of 2.3g/t Au, indicating that the economic cut-off grades applied in the Pre-Feasibility Study have successfully filtered lower-grade material from the mineable inventory while retaining higher-grade zones.

Beta Hunt Complex Growth

The growth at Fletcher contributes significantly to the broader Beta Hunt asset performance. Since Westgold acquired the asset in August 2024, the total Beta Hunt Ore Reserve has increased by 201% to 21.7Mt at 2.34g/t Au for 1.6Moz. The total Mineral Resource for the complex has risen by 104% to 74.6Mt at 2.25g/t Au for 5.4Moz.

Table 1: Fletcher Mineral Resource Estimate comparison (reported above 1.2g/t Au).

Processing Expansion and Next Steps

The increasing scale of the Fletcher deposit underpins an assessment of a 4Mtpa processing case at the Higginsville hub. Westgold is advancing this Definitive Feasibility Study ahead of the previously approved 2.6Mtpa Higginsville expansion. While this approach may extend the period Higginsville operates at its current 1.6Mtpa capacity, the company does not expect this to materially impact the Group production outlook, as additional milling capacity is being committed in the Murchison region where mining performance has exceeded expectations.

Upcoming catalysts include:

• Completion of the 4Mtpa processing expansion study.
• An underground mass-haulage study for Fletcher.
• Continued drilling of Fletcher's open northern extension.
• Testing of the Mason target to the south for longer-term growth potential.

Westgold Managing Director and CEO Wayne Bramwell stated that drilling at Beta Hunt continues to unlock material value, with the emerging Fletcher Zone contributing more than 1Moz of Ore Reserve and 3Moz of Mineral Resource growth. The company plans to incorporate a preliminary assessment of the 4Mtpa expansion opportunity into its next Strategic Outlook, expected in early September 2026.