S&P/ASX 200 Index (ASX: XJO) gold stock Westgold Resources Ltd (ASX: WGX) is charging higher today.
Westgold shares closed yesterday trading for $3.68. In early morning trade on Wednesday, shares are changing hands for $3.80 apiece, up 3.2%.
For some context, the ASX 200 is down 0.5% at this same time.
Westgold is catching tailwinds from two fronts today.
First, the gold price notched new record highs north of US$3,537 per ounce overnight. Gold is currently fetching US$3,523 per ounce. That sees the gold price up 42% since this time last year.
Second, Westgold released its updated Mineral Resource Estimate and Ore Reserve Statement (as at 30 June).
Here's what's grabbing investor interest.
ASX 200 gold stock lifts off on increasing gold reserves
Investors are bidding up the ASX 200 gold stock after the miner reported strong results from its $43 million FY 2025 exploration and resource definition drilling campaign.
Westgold's Mineral Resource now stands at 16.3 million ounces of gold (231 Mt at 2.18 g/t Au), post mining depletion. That's up 24% year on year.
And Ore Reserves increased by 5% to 3.5 million ounces of gold (56 Mt at 1.93 g/t Au), post mining depletion.
The miner highlighted that its reserve life continues to grow. With a total milling capacity of 5.7 million tonnes per year, Westgold said it has an estimated Reserve life of approximately 10 years.
What did management say?
Commenting on the results boosting the ASX 200 gold stock today, Westgold CEO Wayne Bramwell said, "In FY25 Westgold invested $43 million in resource development and exploration across our portfolio."
Bramwell added:
This investment delivered significant growth in group Mineral Resources, most notably with the maiden Fletcher Mineral Resource of 2.3 million ounces, and a material uplift in group Ore Reserves.
Importantly, our Mineral Resource and Ore Reserve growth has been created whilst concurrently investing in critical mine infrastructure across our Murchison and Southern Goldfields mines. This investment has now established a sustainable platform for long term cashflow generation over a 10-year Group Ore Reserve life.
What's next for the ASX 200 gold stock?
"Westgold will continue to drill and invest in organic growth through exploration, resource definition and Mineral Resource conversion across our portfolio," Bramwell said, looking to the year ahead.
"We unlocked value for our shareholders and stakeholders in FY25 and are confident in our team's ability to create additional value from two of Western Australia's most productive goldfields," he concluded.
The miner said it has 19 drill rigs currently operating, both on the surface and underground across its 3,200 square kilometre portfolio.
Westgold intends to invest $50 million in exploration and resource development in FY 2026.
With today's boost factored in, shares in the ASX 200 gold stock are up 31% so far in 2025.
