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Westgold kicks off development of 2nd mine at Central Murchison

Metals X Ltd. gold spinoff Westgold Resources Ltd. started the development of a second underground mine at its Central Murchison gold project in Western Australia.

The Comet underground mine hosts reserves of 1.4 million tonnes at 3.43 g/t of gold containing 166,000 ounces, while underground mine resources total 2.85 million tonnes at 3.52 g/t of gold containing 323,000 ounces.

The mine will serve as ramp-up option at Central Murchison during the dewatering and restart of the Big Bell underground mine.

The mine will reach steady-state production rate of about 400,000 tonnes per annum with the underground mining contract awarded to Australian Contract Mining.

The Comet mine will be initially mined over the next four years and will be expected to add up to 40,000 ounces per annum to Central Murchison's output.

Westgold Managing Director Peter Cook said the ore system at Comet is shallowly drilled and remains open down-plunge, and the company expects to extend this ore system at depth.