Cue Hub expands to 1.7 Mtpa in FY28

Canada NewsWire

Cue mine outputs lifting in FY27 deliver increased ore optionality and FY28 gold output

PERTH, Western Australia , Aug. 5, 2026 /CNW/ -- Westgold Resources Limited (ASX: WGX) (TSX: WGX) , Westgold or the Company ) is pleased to announce its commitment to the Cue Expansion Plan (CXP), a capital-light expansion of the Company's Cue processing hub from its current 1.4Mtpa run rate to 1.7Mtpa in FY28.

This plan reflects a deliberate shift towards processing hub optimisation across the wider business. The CXP is underpinned by increasing underground mine outputs from Westgold's Big Bell and Great Fingall mines near Cue.

Further upside may come from other ore sources currently in production including the operating Fender underground (≈0.2Mtpa) and smaller open pits near Cue. There is also potential for third-party ore supply via existing ore purchase agreements and if drilling is successful, from Westgold brownfields open pit resource targets at Big Bell South and Cuddingwarra.

CXP – 1.4Mtpa throughput to 1.7Mtpa in FY28

The CXP is a capital-light pathway to increase Cue processing hub throughput from 1.4Mtpa to 1.7Mtpa in FY28 by debottlenecking the existing circuit . Study work indicates increasing the mill motor power from 2.9MW to 4.2MW through a replacement liquid-cooled motor and variable speed drive, together with associated system and pumping upgrades will support operation at the higher duty.

The process plant upgrade is designed to increase the milling circuit throughput from the current nominal 170 t/h to 200 t/h. This expansion is scheduled to be complete in late FY27, with the higher installed capacity supporting an increase of approximately 15kozpa from the Cue hub from FY28 onwards.

Westgold will now progress detailed engineering, procurement planning and execution sequencing for the CXP while continuing brownfields drilling at near-mill opportunities to define future ore optionality.

Westgold Managing Director and CEO Wayne Bramwell commented:

"Bigger mines need bigger mills. Westgold's underground mine outputs are growing across all the Murchison operations and building ore stockpiles from FY27 onwards.

In addition, open pit mining is now underway at Cue and Meekatharra, with this organic growth underpinning the incremental expansion of our Cue business. This simple upgrade and modest capital investment at the Cue hub reflects a deliberate shift towards processing hub optimisation and expansion, with lower operating costs and higher cashflow the objective.

At Cue, small open pits are being developed now and additional near-hub open pit resource development opportunities at Big Bell South and Cuddingwarra exist. These targets are larger, are within approximately 50km of our Cue hub and if drilling is successful, can add significant additional ore sources in FY28."

Highlights

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 CXP study is at scoping-study level and associated capital estimates are described as having estimate accuracy of ±35%. The expansion studies are 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, production targets or forecast financial information will be made in accordance with the ASX Listing Rules and the JORC Code (2012), where applicable.

The production target is predominantly sourced from Ore Reserves and Inferred Mineral Resources. 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.

A minor portion of the production target during FY32-FY33 is sourced from the Big Bell South Exploration Target. The Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. The Company believes there is a reasonable basis for the inclusion of the Exploration Target given its limited contribution to the overall production target and the supporting geological evidence.

The Scoping Study referred to in this announcement has been undertaken to evaluate the potential expansion of the Cue processing facility. It is a preliminary technical and economic study of the potential viability of increasing throughput at Westgold's Cue hub, based on low level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves. Further evaluation work and appropriate studies are required before Westgold will be in a position to estimate any Ore Reserves or to provide any assurance of an economic development case.

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 forecast capital payback period of approximately 10 months occurs prior to the scheduled extraction of the majority of Inferred Mineral Resources and before any reliance on the Big Bell South Exploration Target. As a result, recovery of the expansion capital is supported predominantly by Ore Reserves and existing operating inventory. Westgold believes that it has a reasonable basis for providing these forward-looking statements and the forecast financial information based on material assumptions outlined in this release.

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.

Mining areas within the production target are fully permitted and available for ongoing resource definition and eventual mining. To achieve the range of outcomes indicated in the Scoping Study, funding in the order of $22M will likely be required. 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 which remained undrawn as at the date of this announcement.

Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

Readers should not assume that the brownfields opportunities described at Big Bell South will necessarily be converted into future Ore Reserves for the expanded processing hubs. Advancement of any of these opportunities remains subject to drilling results, geological interpretation, mine design, mine planning, technical and commercial studies, approvals, stakeholder engagement and all applicable regulatory and disclosure requirements.

1.0 Cue Expansion Project (CXP) – 1.4Mtpa to 1.7Mtpa in FY28

Westgold's Murchison expansion strategy reflects a deliberate shift towards processing hub optimisation from FY27 onwards, using established infrastructure to convert increasing mine outputs into higher throughput and cash generation.

Rather than treating each ore source or processing opportunity in isolation, Westgold is pursuing regional development logic to maximise throughput, lower costs and lift free cash flow from established infrastructure across the Murchison operating footprint ( Figure 1 ).

This approach materially improves capital productivity by leveraging existing infrastructure, reducing haulage costs, shortening execution pathways and positioning the business to convert production growth into cash generation at a lower marginal capital cost than a greenfields solution.

This strategy is also aligned with Westgold's broader self-funded growth model.

In practical terms, the ability to pursue growth through brownfields infrastructure upgrades provides a lower-risk pathway to accelerate production, lower processing unit costs and increase free cash flow without relying on external financing or long development timelines.

At the Cue processing hub, the preferred expansion pathway targets debottlenecking of the existing circuit (Figure 2).

Existing study work indicates that the core constraint to materially increasing throughput at the plant is installed mill power. The selected concept therefore focuses on increasing mill motor power from 2.9MW to 4.2MW through a replacement liquid-cooled motor and variable speed drive, together with associated system upgrades to support operation at the higher duty.

The process plant upgrade is designed to increase the milling circuit throughput from the current nominal 170 t/h to 200 t/h by:

Replacing the 2.9MW mill motor with a 4.2MW motor;

Reconfiguring the internal mill lining to accommodate a grate wall discharge system;

Replacing the gearbox pinions, drive pinion and ring gear with a higher specification alloy;

Replacing the carbon safety screen with a larger screen;

Replacing the cyclone feed pumps;

Upgrading the plant and booster tailings pumps;

Upgrading the process water pumps; and

Upgrading the power distribution networks and hardware to accommodate the higher power draw.

By increasing available power and improving driveline control through a variable speed drive, Cue can operate at a higher sustained throughput target of approximately 1.7Mtpa. The use of an interchangeable motor and retrofitting the existing switch room lowers civil and structural disruption, reduces schedule risk and installation complexity, and improves overall capital efficiency.

The CXP takes advantage of the increased ore supply provided by growing production at Big Bell and the ramp-up at Great Fingall. The upgrade is expected to require only limited downtime for tie-in, allowing Westgold to increase throughput with a modest capital requirement and lower execution risk than a new plant build.

CXP Scoping Study Summary

Note that all Scoping Study values represented are mid-point. Ranges are provided in Table 2 .

Average annual gold production of approximately 122koz (an increase of 15koz) - for total gold production of 1.2Moz over 10 years (an increase of 134koz)

Processing underpinned by the long-life (>16 years) Big Bell underground mine - with supplementary high-grade feed from the historic Great Fingall mine

Scoping study assumes an upgrade of the current Cue 1.4Mtpa plant to 1.7Mtpa - for a capital cost of $22M (upper range)

Life of mine AISC of approximately $3,240/oz

Pre-tax undiscounted cashflow of approximately $1.7B - at a gold price of $5,500/oz increasing to $2.3B at Spot Gold Price ($6,000/oz)

NPV of approximately $1.1B - at a gold price of $5,500/oz.

An indicative comparison between the midpoints of the CXP and current operating plan (without CXP 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 : CXP comparison against current mine plan

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 CXP, which is forecast to generate an unleveraged NPV of approximately $1.1B.

Table 3 : Financial Results Summary

Sensitivity Analysis

Figure 3 depicts sensitivity analysis for CXP. It shows that while sensitive to gold price, the project NPVs are resilient to both discount rate and cost.

CXP Basis for Production Target

The Production Target for CXP is underpinned predominantly by a combination of Ore Reserves at Big Bell and Great Fingall, together with Inferred Mineral Resources at Great Fingall ( Figure 4 ).

The production schedule shows a temporary dip in FY32 from Big Bell. This reflects conservative development rates assumed in the Big Bell Deeps life of mine plan, which are designed to establish the number of production fronts required to sustain full production rates. Westgold expects the Cue hub to have several potential ore sources that could help offset this dip and support utilisation of the expanded mill.

These include:

Big Bell South and the broader Big Bell trend – priority near-mine targets currently the subject of substantial resource definition drilling ( Figure 5 );

Cuddingwarra – an additional brownfields opportunity near Cue, also being assessed as part of Westgold's resource definition and optimisation program;

regional low-grade surface stockpiles – approximately 3.8Mt at 0.7g/t, available for reclaim and processing, providing a flexible source of supplementary feed; and

existing ore purchase agreements – which may provide further third-party ore feed into the expanded Cue processing hub.

The Big Bell South Exploration Target and identified mining stockpiles (mined material in excess of milling capacity in FY27) have been included within the production target. Other opportunities including Cuddingwarra, low-grade surface stockpiles and third-party ore have not been included in the physical or financial assessment.

CXP Capital Costs

The CXP capital cost estimate in Table 4 is derived based on mechanical equipment lists from several sources such as quotes, and actual prices used from Westgold's current operating mines. The study-level capital estimate for CXP has been determined at approximately $14M-$22M.

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 – CXP

Risks, Study Maturity and Mitigation Pathway

As with any processing expansion at this maturity, it remains subject to the risks and uncertainties typical of study-stage brownfields developments.

For CXP, the key execution sensitivities relate to timely procurement of long lead electrical and mechanical components, outage planning, installation sequencing and commissioning reliability once the upgraded drive system is introduced.

The mill motor has been ordered and delivery is scheduled in Q4, FY27.

2.0 Murchison Brownfields Resource Definition Opportunities

Westgold's portfolio review identified and ranked multiple mature assets within the Murchison that could deliver incremental open pit ore sources into existing regional operating centres. With disciplined capital allocation these opportunities can be progressively tested through resource definition, mine design and economic evaluation across the three-year outlook (3YO).

These opportunities are all located within the broader Murchison operating footprint and sit within short haulage distance 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.

One such opportunity identified was Big Bell South, and the resource definition and open pit optimisation work underway could deliver improved CXP outcomes. Big Bell South ( Figure 5) is being assessed as a potential open pit extension of the wider Big Bell mineralised trend.

Drilling of the Big Bell South trend from surface has begun with multiple rigs located at 1600 and Shocker drilling the potential extensions.

This will encompass Stage One of drilling at Big Bell South which will be ongoing throughout the first half of FY27, with Stage Two toward the end of FY27. It is expected an initial Scoping Study will be completed at the conclusion of Stage One.

This brownfields work is especially relevant because it strengthens the strategic rationale for higher installed processing capacity at Cue.

Further portfolio analysis across Cue is ongoing, with additional opportunities around the historic Cuddingwarra trend ( Figure 1 ) being assessed for potential future advancement. If the current drilling and optimisation programs are successful, they have potential to supplement underground feed sources, improve ore blend management and support sustained high utilisation across the expanded mills.

3.0 Next Steps

Organic growth from Westgold's existing Cue mines and the proposed brownfields resource definition program outline a regional growth strategy for Westgold's Cue operations with multiple advantages.

The CXP is underpinned by this organic growth and:

materially lifts installed processing capacity at the Cue hub to 1.7Mtpa by FY28;

utilises the expansion of existing infrastructure, which is lower risk and more capital efficient relative to a new plant build;

creates an incremental, lower-risk and near-term pathway to higher gold production, lower processing unit costs and enhanced free cash flow - leveraging assets Westgold already owns and operates; and

provides management with a broader suite of future ore-source options to improve regional scheduling flexibility, plant utilisation and cash flow generation.

The next phases of work are expected to include additional engineering definition, sundry procurement planning, vendor engagement and more detailed execution sequencing so that shutdowns can be managed efficiently and long lead items can be secured where appropriate.

In parallel, Westgold will continue to advance the brownfields resource definition work so that future ore optionality can be assessed against haulage, mine design, processing fit and capital intensity.

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 that underpin the CXP is shown below. This is based on the current statement provided by Westgold on 3 September 2025 – 2025 Mineral Resource Estimate and Ore Reserves.

Table 5 : Ore Reserve Statement

Table 6 : Mineral Resource Statement

Appendix 2: CXP Technical Detail and Assumptions

The process design basis for CXP is built around Westgold's established Cue processing plant. The CXP is targeted and brownfields in nature. The project seeks to maintain existing operations at current throughput until a short, controlled shutdown window is used to install the upgraded motor, variable speed drive and associated supporting systems. This minimises production interruptions.

Long lead vendor items have been secured or otherwise sourced to ensure a seamless transition to the expanded capacity.

At Cue, underground mining is done via longhole open stoping at Great Fingall, and sub-level caving at Big Bell. Production under Westgold ownership at both of these mines has been ongoing since 2019 at Big Bell, and since 2025 at Great Fingall. Modifying factors such as minimum mining widths, dilution, cut-off grades, stope sizes and ore loss are all included within the Scoping Study and based on current operational experience at these existing operating mines.

Westgold has carried out processing at the Cue hub since 2016. The production target in the Scoping Study assumes processing recovery rates consistent with current achievements. It is assumed that an increase in throughput at the Cue processing plant, as determined within the Scoping Study, will not adversely affect the recovery of the processed material.

Of the Mineral Resources scheduled for extraction in this Scoping Study production target, 100% is classified in Ore Reserves at Big Bell and 21% at Great Fingall. At Great Fingall the remaining mine plan sits within the Inferred Resource (79%) from year four onwards. While the Inferred Resource contributes significantly to the production target at Great Fingall specifically, Westgold is currently undertaking a major resource definition program across Cue to de-risk this plan. Additionally, the Big Bell South Exploration Target sits within years six and seven. This constitutes 3% of the LoM plan surrounding the CXP.

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.)

SOURCE Westgold Resources Limited

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August 4, 2026 - 11:09 PM PDT

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