ASX- and TSX-listed Westgold Resources has announced its commitment to expand its Cue processing hub in Australia’s Murchison region, having approved the Cue expansion plan (CXP) as a capital-light expansion from the current 1.4-million-tonne-a-year run rate to 1.7-million tonnes by the 2028 financial year.

The company says this plan reflects a deliberate shift towards processing hub optimisation across the wider business, with the CXP aimed at debottlenecking the existing circuit and increasing underground mine outputs from Westgold’s nearby Big Bell and Great Fingall mines.

Further upside may come from other ore sources currently in production including the operating Fender underground, which could add 200 000 t/y, and smaller openpits near Cue.

Westgold says there is also potential for third-party ore supply through existing ore purchase agreements and, if drilling is successful, from Westgold brownfield openpit resource targets at Big Bell South and Cuddingwarra.

The company‘s study work indicates that by increasing the mill motor power from 2.9 MW to 4.2 MW through a replacement liquid-cooled motor and variable speed drive, together with associated system and pumping upgrades, it will support higher duty operations.

The process plant upgrade is designed to increase the milling circuit throughput from the current 170 t/h rate to 200 t/h.

This expansion is scheduled to be complete late in the 2027 financial year, with the higher installed capacity supporting an increase of about 15 000 oz/y from the Cue hub from the 2028 financial year onwards.

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

“Bigger mines need bigger mills. Westgold’s underground mine outputs are growing across all the Murchison operations and building ore stockpiles from financial year 2027 onwards,” says Westgold MD and CEO Wayne Bramwell.

In addition, he confirms openpit mining is now underway at Cue and Meekatharra, with this organic growth underpinning the incremental expansion of the company’s 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,” says Bramwell.

At Cue, he notes that small openpits are being developed now and additional near-hub openpit resource development opportunities at Big Bell South and Cuddingwarra exist.

These targets are larger, are within about 50 km of the company’s Cue hub and if drilling is successful, can add significant additional ore sources in financial year 2028, he continues.

The CXP scoping study envisions a capital cost of $22-million to realise life-of-mine gold production of between 1.1-million and 1.3-million ounces at an all-in sustaining cost of between $2 916/oz and $3 564/oz. The project has a payback period of ten months and improves the overall Cue net present value by $400-million – at a gold price of $5 500/oz.