ASX Release 24 April 2012 Westgold secures the High Grade Great Fingall Gold Mine Westgold Resources (ASX:WGR) is pleased to advise that it has acquired the 49% relevant interest in the Great Fingall Deeps from Great Fingall Mining Company NL. This interest contains 52,000oz of Probable Reserves and 132,000 ounces at 9.1 g/t Au of Identified mineral resource. It is anticipated that completion of the acquisition will occur within the next week. The consideration for the relevant interest is as follows: 1. AUD $150,000 in cash 2. The allotment of 3.0 million fully paid ordinary shares in Westgold, of which1.0 million ordinary shares will be subject to a 12 month voluntary escrow period. 3. A deferred payment of AUD$5 per ounce for all ounces produced from the Defined Area in the Great Fingall Farm-in Agreement. The Great Fingall mine produced 1.2Moz at a grade of 19.5 g/t Au up until 1918 and is one of the highest grade and most significant producing gold mines in the Murchison region. The mine has not been the subject of any modern underground development, and the Company considers that in conjunction with the proposed development of the adjacent Golden Crown mine that there is significant upside to be achieved through the conversion of the remnant resources above the current reserves and additional exploration for extensions to the known mineralisation. (Figure 1). Westgold Managing Director Scott Huffadine said this agreement is another step by Westgold to finalise its development plans for the entire Central Murchison Gold Project, and allows for the unencumbered development of all remnant and down plunge extensions of this quality high grade asset which has produced 1.9Mt @ 19.5 g/t Au for an average production profile of over 1500 ounces per vertical metre (OVM).
Figure 1 Great Fingall and Golden Crown Mines with proposed decline access. Enquiries Scott Huffadine Managing Director Phone: 08 9326 5700 Email: admin@westgold.com.au END Andrew Beckwith Director Exploration Media Dudley White MAGNUS Investor Relations + Corporate Communication Phone: 02 8999 1010 Email: dwhite@magnus.net.au
Central Murchison Gold Project Resource and Reserve Background CMGP Mining Reserves Ore Body Underground Probable Total Tonnes Grade Ounces Tonnes Grade Ounces Big Bell 2,895,000 4.20 391,000 2,895,000 4.20 391,000 Great Fingall^/Golden Crown 878,000 8.00 224,000 878,000 8.00 224,000 Sub-total 3,773,000 5. 10 615,000 3,773,000 5.10 615,000 Open Pits 1600N / Shocker 806,000 1.75 45,000 806,000 1.75 45,000 Big Bell South 1,016,000 1.98 65,000 1,016,000 1.98 65,000 Great Fingall Open Pit 750,000 1.75 42,000 750,000 1.75 42,000 South Fingall 40,000 1.84 2,000 40,000 1.84 2,000 Yellow Taxi Group 122,000 2.32 9,000 122,000 2.32 9,000 Sub-total 2,734,000 1.86 164,000 2,734,000 1.86 164,000 Stockpiles Big Bell Tails 3,400,000 0.70 76,000 3,400,000 0.70 76,000 Sub-total 3,400,000 0.70 76,000 3,400,000 0.70 76,000 Total 9,907,000 2.69 855,000 9,907,000 2.69 855,000 *Rounding errors may occur ^ Assumes 100% owned by Westgold on completion of the acquisition of the 49% relevant interest in Great Fingall Deeps from Great Fingall Mining Company NL. Modifying Factors The Mining Reserve Estimates (Probable JORC Classification) include mining dilution and ore extraction factors. The mine evaluation studies conducted or commissioned by Aragon apply a gold price of AU$1,250 and state royalty of 2.5%. Nominal ore process operating unit cost of $25 per tonne have been used in the studies and metallurgical recoveries are based on actual historical data for the mines when in operation: Big Bell Mining dilution of 20% applied to ore production, mine extraction factors of 85% are estimated. Metallurgical recoveries of 90% are applied. Great Fingall - Mining dilution of 10% applied, mine extraction factors of 80% are estimated. Metallurgical recoveries of 95% have been applied
Competent Persons Statement - Central Murchison Gold Project The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Jake Russell B.Sc. (Hons), who is a Member of the Australian Institute of Geoscientists. Mr Russell is a full-time employee of the company. Mr Russell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Ore Reserves is based on information compiled under the direction of Mr. Paul Hucker B. Eng (Hons), who is a Member of the AusIMM. Mr Hucker is a full-time employee of the company. Mr Hucker has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hucker consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Central Murchison Resource Table Measured Indicated Inferred Total Resource Mining Centre/ Deposit Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au g/t Oz g/t Oz g/t Oz g/t Oz Murchison Bell 1600N / Shocker - - - 2,870,000 1.31 121,000 3,503,000 1.26 141,000 6,373,000 1.28 263,000 1600N / Shocker Deeps - - - - - - 544,000 3.77 66,000 544,000 3.77 66,000 700 / 1100 - - - 385,000 1.70 21,000 578,000 1.60 30,000 963,000 1.64 51,000 Big Bell - - - 5,153,000 4.50 746,000 7,000 4.90 1,000 5,160,000 4.50 747,000 Big Bell South - - - 1,145,000 1.86 69,000 3,792,000 1.24 151,000 4,937,000 1.38 220,000 Big Bell South Deeps - - - - - - 1,015,000 3.35 109,000 1,015,000 3.35 109,000 Fender - - - 71,000 4.10 9,000 - - - 71,000 4.10 9,000 Cuddingwarra Black Swan - - - 222,000 3.50 25,000 1,000 1.30-223,000 3.49 25,000 Black Swan South - - - 315,000 3.50 35,000 1,816,000 3.80 222,000 2,131,000 3.76 257,000 Chieftain - - - 50,000 3.10 5,000 75,000 3.40 8,000 125,000 3.28 13,000 City of Chester - - - 416,000 1.98 26,000 81,000 1.76 5,000 497,000 1.94 31,000 City of Chester NW - - - 197,000 1.65 10,000 13,000 1.18 1,000 210,000 1.62 11,000 City of Sydney 4,000 1.60-62,000 2.10 4,000 - - - 66,000 2.07 4,000 Coventry North - - - - - - 204,000 1.34 9,000 204,000 1.34 9,000 Golden Gate - - - 65,000 3.00 6,000 1,000 2.60-66,000 2.99 6,000 Jim's Find - - - 263,000 1.69 14,000 37,000 1.52 2,000 300,000 1.67 16,000 Rheingold - - - - - - 89,000 3.80 11,000 89,000 3.80 11,000 Rheingold South 23,000 3.30 2,000 82,000 3.60 9,000 96,000 3.40 10,000 201,000 3.47 22,000 Day Dawn 3210 - - - 197,000 1.63 10,000 9,000 2.78 1,000 206,000 1.68 11,000 Golden Crown - - - 551,000 9.60 170,000 91,000 5.40 16,000 642,000 9.00 186,000 Great Fingall Open Pit - - - 1,362,000 1.76 77,000 85,000 2.06 6,000 1,446,000 1.78 83,000 Great Fingall UG - - - 1,034,000 10.20 339,000 271,000 6.50 57,000 1,305,000 9.43 396,000 Kinsella 1,000 2.90-54,000 3.10 5,000 - - - 55,000 3.10 5,000 Mount Fingall - - - - - - 30,000 3.10 3,000 30,000 3.10 3,000 Rubicon 19,000 2.90 2,000 50,000 2.30 4,000 12,000 1.30 1,000 81,000 2.29 6,000 South Fingall - - - 150,000 1.80 9,000 94,000 1.81 5,000 244,000 1.80 14,000 Try Again 1,000 1.80-12,000 3.20 1,000 178,000 3.10 18,000 191,000 3.10 19,000 Yellow Taxi Group - - - 233,000 2.02 15,000 88,000 1.75 5,000 321,000 1.95 20,000 Stockpiles Big Bell Stockpiles - - - 116,000 0.83 3,000 - - - 116,000 0.83 3,000 Big Bell Tails - - - 3,394,000 0.70 76,000 - - - 3,394,000 0.70 76,000 Cuddingwarra Stockpiles - - - 70,000 0.81 2,000 - - - 70,000 0.81 2,000 Day Dawn Stockpiles - - - 119,000 1.00 4,000 - - - 119,000 1.00 4,000 Fingall Sands - - - 34,000 1.20 1,000 - - - 34,000 1.20 1,000 TOTAL 48,000 3.24 5,000 18,670,000 3.03 1,819,000 12,710,000 2.14 877,000 31,428,000 2.67 2,700,000 *rounding errors may occur