JOHANNESBURG (miningweekly.com) – Diversified mining company Metals X has provided more details about its gold spin-off, including that the new gold pure-play company will be known as Westgold Resources.
The new entity will feature as one of Australia’s top ten domestic gold producers, with a production run rate of 250 000 oz/y and the potential to produce 400 000 oz/y in the next two years, according to a presentation published on Metals X’s website.
With a resource base of 15.4-million ounces and a reserve base of 2.9-million ounces, Westgold Resources will be a “formidable Australian gold miner”, the presentation states.
The spin-off will own the Higginsville, South Kalgoorlie and Central Murchison mines as well as the Fortnum gold project, which is under construction. Its five processing plants have the capacity to produce 5.5-million tons a year.
Westgold is targeting cash operating costs of $840/oz (A$1 100/oz) and all-in sustaining cash costs of $950/oz (A$1 250/oz).
Metals X announced the demerger of its gold assets last month, leaving the company with base metals, including producing tin and copper assets, as well as expansion and growth assets in tin, copper and nickel.
At the time of the demerger announcement, Metals X stated that its shareholders will own equal interests in shares in both entities. Cash and working capital will also be split, so that the two new companies will have adequate funding for their operations and respective growth plans.
Metals X CEO and executive director Peter Cook will likely become the MD of the gold business, while Metals X’s other executive director, Warren Hallam, will become MD of the base metals business.