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| Black Cat Syndicate |
Westgold Sells Non-Core Lakewood Plant to Black Cat to Streamline Operations
Westgold Resources (ASX: WGX) has announced the divestment of its 1.2 million tonne per annum (mtpa) Lakewood processing facility to Black Cat Syndicate (ASX: BC8) in Kalgoorlie, Western Australia. The transaction is expected to close on or before March 31, 2025.
As part of the agreement, Westgold retains optionality and priority access of up to 200,000 tonnes per annum (ktpa) at Lakewood under a toll-treating arrangement for a two-year period. This strategic move aligns with Westgold’s focus on consolidating its processing capacity and optimizing operational efficiencies.
Black Cat to Fast-Track Gold Production
The acquisition of the fully permitted and operational Lakewood facility will enable Black Cat to accelerate gold production by 15 months, leveraging a 50% increase in throughput capacity from 0.8 mtpa to 1.2 mtpa. This aligns with Black Cat’s goal of capitalizing on favorable gold price trends and strengthening its production pipeline.
Gareth Solly, Managing Director of Black Cat Syndicate, emphasized the strategic benefits of this acquisition:
“The acquisition of the 1.2 mtpa Lakewood processing facility accelerates Kal East by 15 months, eliminating the risks associated with construction. With a 1.3 million-ounce resource base near Lakewood and ongoing drilling, we now have a clear pathway to cash generation.”
Solly also noted that Lakewood’s history as a pivotal processing facility for companies such as Silver Lake Resources (now Vault Minerals) and Karora Resources highlights its significance in the region’s mining sector.
Westgold’s Expansion Strategy
Wayne Bramwell, Managing Director and CEO of Westgold, outlined the company’s focus on expanding its Beta Hunt mine and Higginsville mill.
“In the Southern Goldfields, the equation that delivers higher operational outputs and lower costs is an expanded Beta Hunt mine feeding an expanded Higginsville mill,” Bramwell stated.
Westgold is investing in infrastructure upgrades to boost Beta Hunt’s output to over 2 mtpa by the end of 2025. Additionally, the company’s ongoing expansion study for the Higginsville mill is evaluating an increase in capacity from 2.6 mtpa to 4 mtpa. The results of this study are expected to be released in March 2025.
The divestment of Lakewood enables Westgold to consolidate its processing infrastructure and reinvest in high-value assets. By streamlining its portfolio, the company aims to establish a lower-cost, higher-margin gold production platform.
