A Crown Prince of gold
New Murchison Gold (NMG) has entered into an ore purchase agreement with Westgold Resources in a bid to increase production at its Crown Prince gold deposit near Meekatharra, Western Australia.
Under the agreement, Crown Prince ore will be processed at Westgold’s Bluebird processing plant. Westgold has agreed to purchase 30,000–50,000 tonnes of gold ore per month from NMG’s planned open pit operation at Crown Prince.
As NMG is aiming to commence open pit mining at Crown Prince in the 2025–26 financial year (FY26), the agreement will have a similar start date.
NMG estimates that most Crown Prince ore will be processed in the first two years of the agreement, with a potential extension to be agreed upon on a quarter-by-quarter basis.
The agreement is subject to approval from NMG shareholders due to Westgold owning an 18.7 per cent stake in the company. The outcome will be determined in early 2025.
NMG chief executive officer (CEO) Alex Passmore said the agreement will help develop Crown Prince in a “capitally efficient manner”.
“We see this agreement as beneficial to all shareholders with Westgold acquiring additional high grade oxide ore feed to supplement its Meekatharra operations and NMG transitioning to a producer for modest capital,” Passmore said.
“The Bluebird processing plant owned by Westgold is ideal for NMG due to its close proximity and well-matched metallurgical process. We believe the robust frameworks and protocols we have put in place in this agreement aligns both operational teams to a common goal of maximizing operational efficiency.”
Westgold managing director and CEO Wayne Bramwell echoed similar sentiments, describing the agreement as a “win-win” for NMG and Westgold shareholders.
“This type of commercial arrangement is capital efficient for both companies as it leverages the existing processing infrastructure Westgold has at Meekatharra,” Bramwell said.
“The introduction of softer oxide ore from Crown Prince in FY26 effectively increases throughput at the Westgold’s Bluebird plant – growing production and reducing our cost per ounce.
“At the same time, NMG realise value for its shareholders by unlocking a pathway to production for its Crown Prince deposit without the capital impost and execution risk of building a processing plant.”
Crown Prince is part of the largest Garden Gully gold project, which has a 677km2 tenure package across the Abbotts Greenstone Belt. Garden Gully’s mineral resource estimate sits at 279,000 ounces at 3.9 grams per tonne as of November.