The Westgold Resources Ltd (ASX: WGX) share price will be on watch this morning after the West Australian gold miner announced that underground sub-level cave mining has recommenced at its Big Bell site.
Westgold currently owns three operating gold projects located in the gold production belts of Western Australia: the Meekatharra Gold Operations, Fortnum Gold Project, and the recently started Cue Gold Operations.
What did Westgold announce?
This morning, Westgold announced to the market that it has recommenced underground sub-level cave stoping at its Cue Gold Operations Big Bell underground mine.
Westgold noted in its release today that it has made significant capital reinvestments over a three-year period to bring the Big Bell site up to specifications in order to restart operations.
The gold miner added that Big Bell will become its largest single mine in the Murchison region. After the start of the operations, the old mine still has a 10-year mine life and Westgold believes it has excellent resource extension potential.
Westgold commented that geotechnical risk will be reduced by new extraction methods and significantly enhanced ground support at the site.
The gold miner initiated the first mass cave blast two days ago on 2 March. This now paves the path for Westgold to step up its mine output. With this, the company believes it is now well placed to reach its target steady-state production rates by the end of this year.
Westgold noted that despite the Big Bell site being idle and flooded since 2003, it was previously one of the largest single mine gold producers in the Australian gold sector.
Commenting on today's announcement, Westgold's Executive Chairman, Peter Cook said: "This is a major milestone for Westgold and a terrific achievement by our CGO team."
"Big Bell is key to Westgold's plans as it represents the last critical piece in our Murchison strategy. Our dominant land position, three operating process plants, over 9 million oz resource base and our unique position as owner operator provides the strategic platform to underwrite more than 300,000 ounces of production per annum in the longer term," he added.
