Westgold Lifts Gold Reserves 41% to 4.1Moz at $27 an Ounce

Westgold Resources reported Proven and Probable Mineral Reserves of 4.1 million ounces as at 30 June 2026, a 41% increase after mining depletion and the divestment of non-core assets, achieved at a reserve addition cost of $27 per ounce, with grade up 15%.

Westgold Resources Limited (OTC: WGXRF), which also trades as WGX on the ASX and the TSX, has published an updated Mineral Resource Estimate and Mineral Reserve Statement calculated as at 30 June 2026, and the headline number is a big one: Proven and Probable Mineral Reserves of 4.1 million ounces of gold, a 41% increase.

The increase is stated after mining depletion — the ounces dug up and processed during the year — and after adjusting for the sale of non-core assets. That combination matters. Reserve growth flattered by simply not mining, or by bolting on acquired ground, tells you little about the underlying orebodies. Growth booked after depletion and after shedding assets is growth from the drill bit and from reinterpreting what the company already controls.

What the reserve and resource tables actually say

On the reserve side, Westgold reports Proven Mineral Reserves of 15Mt at 1.90g/t gold for 0.9Moz and Probable Mineral Reserves of 42Mt at 2.34g/t for 3.2Moz. Together that is 57Mt at 2.22g/t for 4.1Moz. Proven is the higher-confidence category, typically drilled out and supported by operating experience; Probable carries somewhat more geological and modifying-factor uncertainty but is still economically mineable under a defined mine plan.

The resource base sitting behind those reserves is considerably larger. Measured Mineral Resources stand at 30Mt at 2.36g/t for 2.3Moz, Indicated at 89Mt at 2.35g/t for 6.7Moz, giving a combined Measured and Indicated figure of 119Mt at 2.35g/t for 9.0Moz. A further 75Mt at 2.23g/t for 5.4Moz sits in the Inferred category, reported separately because it carries the lowest confidence of the three and should not be treated as interchangeable with Measured and Indicated material.

One accounting point that trips up newer resource investors: Westgold reports Mineral Resources inclusive of Mineral Reserves. The 4.1Moz reserve is a subset of the 9.0Moz Measured and Indicated figure, not an addition to it. Adding the two together double-counts the same rock.

Why $27 an ounce is the number to sit with

Reserve additions came at a stated cost of $27 per ounce. That figure — essentially the exploration and resource-definition spend divided by the ounces converted into reserve — is the cleanest available proxy for how efficiently a gold producer replaces what it mines.

Context helps here. Acquiring ounces through corporate M&A in the gold sector typically costs a multiple of what it costs to drill them out beneath an existing mine, because a buyer pays for infrastructure, permits and a control premium on top of the metal. Brownfield conversion at a producing operation carries no such premium. When a company can add reserve ounces for the price of a decent restaurant meal per ounce, and gold is selling for orders of magnitude more, the arithmetic on organic reserve replacement is hard to argue with.

The grade improvement reinforces the point. Reserve grade rose 15%. Higher grade means more metal per tonne processed, which — assuming mining and milling costs per tonne hold roughly steady — pushes down all-in sustaining costs per ounce and widens margin. Volume growth and grade growth arriving together is a materially better outcome than tonnage growth alone, which can simply mean more low-grade rock queued for a mill.

What the reserve number does for mine life

Reserves are the input to mine life. A 41% lift in reserve ounces, delivered after a full year of depletion, extends the runway on Westgold’s mine plans and reduces the pressure to make a defensive acquisition to keep the mills fed. For an underground gold producer, that visibility is the thing that supports capital commitments — decline development, ventilation, paste fill, fleet renewal — that only pay back over multiple years.

It also changes the gold-price conversation. A company with a short reserve life is largely a leveraged bet on the spot price over the next couple of years. A longer reserve life converts the same gold price leverage into something that compounds over more mining cycles. The higher reserve grade adds a second layer: higher-grade ounces are less sensitive to cost inflation and more resilient if the gold price retraces.

A company with a short reserve life is largely a leveraged bet on the spot price over the next couple of years.

The full statement and the underlying tables were released via INN Precious Metals.

How the shares responded

Westgold’s US over-the-counter line, WGXRF, last traded at 4.49 at the close on 19 August 2026, up 10.59% on the day from a previous close of 4.06. The day’s range ran from 3.95 to 4.49, meaning the stock finished at the top of its band — a pattern that usually signals buying pressure holding into the bell rather than a spike that faded.

That move stands out against a flat broad market. On the same session the S&P 500 tracker (SPY) closed at $769.06, up 0.21%, the Dow 30 tracker (DIA) at $534.27, up 0.26%, and the Nasdaq 100 tracker (QQQ) at $716.08, down 0.20%. In other words, the gain was company-specific, not a rising tide.

OTC lines in Australian-listed miners are thinly traded relative to the home market, and a double-digit percentage move on the US quote should be read alongside the ASX and TSX listings rather than in isolation.

What to watch from here

Production guidance. The reserve statement sets the resource envelope; guidance translates it into ounces produced and cash generated. Whether the higher reserve grade shows up in the mine schedule is the test.
Cost per ounce. A 15% grade lift should support unit costs. If all-in sustaining costs do not move in the expected direction, the grade gain is being offset elsewhere.
Inferred conversion. The 5.4Moz Inferred pool is the pipeline for future reserve additions. The rate at which it migrates into Indicated and then into reserve is the forward indicator of whether $27 an ounce is repeatable.
The divestment effect. Reserves were adjusted for the sale of non-core assets. The strategic question is whether a smaller, higher-grade portfolio delivers better returns than a broader one.

The core takeaway is straightforward. Westgold replaced everything it mined during the year, added 41% on top, improved the grade by 15%, and did it at $27 an ounce. Whether that translates into free cash flow depends on execution and on where gold trades — but the geological foundation is demonstrably larger and richer than it was twelve months ago.

Key facts

Proven & Probable Reserves: 57Mt at 2.22g/t Au for 4.1Moz, up 41%
Reserve addition cost: $27 per ounce; reserve grade up 15%
Measured & Indicated Resources: 119Mt at 2.35g/t Au for 9.0Moz (inclusive of reserves)
WGXRF last close: 4.49, +10.59%, as of 19 Aug 2026 20:00 GMT

Frequently asked questions

How much did Westgold’s gold reserves increase?

Westgold reported Proven and Probable Mineral Reserves of 4.1 million ounces as at 30 June 2026, a 41% increase. The gain was booked after mining depletion during the year and after adjusting for the divestment of non-core assets, meaning it reflects genuine organic additions rather than acquired ounces or a pause in mining.

What does a $27 per ounce reserve addition cost mean?

It is the exploration and resource-definition spend divided by the number of ounces converted into Mineral Reserve. At $27 an ounce it is a measure of how cheaply the company replaced and grew the ounces it mines. Brownfield drilling near existing mines is typically far cheaper than buying ounces through corporate acquisitions.

Are Westgold’s resources and reserves added together?

No. Westgold reports Mineral Resources inclusive of Mineral Reserves, so the 4.1Moz reserve figure sits inside the 9.0Moz Measured and Indicated resource rather than on top of it. Adding the two would double-count the same mineralised rock. Inferred Resources of 5.4Moz are reported separately at lower confidence.

Where does Westgold Resources trade?

Westgold is listed on the Australian Securities Exchange as WGX, on the Toronto Stock Exchange as WGX, and trades over the counter in the United States as WGXRF. The US OTC line last traded at 4.49, up 10.59% on the day, as of the close on 19 August 2026.

Why does the 15% grade increase matter?

Higher reserve grade means more gold recovered per tonne of rock mined and processed. If mining and milling costs per tonne stay broadly flat, a grade lift pushes down cost per ounce and widens margin. Grade growth arriving alongside tonnage growth is a stronger outcome than added tonnage of low-grade material alone.

What is the difference between Proven and Probable reserves?

Proven Mineral Reserves are the highest-confidence category, drilled out densely and usually supported by operating history. Probable Mineral Reserves carry more geological or modifying-factor uncertainty but are still judged economically mineable within a defined mine plan. Westgold holds 0.9Moz in Proven and 3.2Moz in Probable, totalling 4.1Moz.

Sources

2026 MINERAL RESOURCE ESTIMATE AND MINERAL RESERVES — INN Precious Metals

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