WESTGOLD RESOURCES LIMITED Video Webcast

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WESTGOLD RESOURCES LIMITED (WGR)

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WESTGOLD RESOURCES LIMITED (WGR) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/NSW
WESTGOLD RESOURCES LIMITED (WGR)	Thu, 11 Jun 2009 11:00AM	Rover 1 Drilling Update - Exciting New Zones Discovered
WESTGOLD RESOURCES LIMITED (WGR)	Tue, 5 May 2009 09:00AM	WGR - March Quarterly and Cashflow Report - Mr Andrew Beckwith, MD
WESTGOLD RESOURCES LIMITED (WGR)	Tue, 23 Dec 2008 09:00AM	WGR - Explorer of the Year Award - Mr Andrew Beckwith, MD
WESTGOLD RESOURCES LIMITED (WGR)	Wed, 8 Oct 2008 09:30AM	WGR - CEO Profile - Andrew Beckwith, CEO
WESTGOLD RESOURCES LIMITED (WGR)	Fri, 3 Oct 2008 01:00PM	WGR - Resources Rising Stars - Mr Andrew Beckwith, MD
WESTGOLD RESOURCES LIMITED (WGR) More Encouraging Results for Rover 1 Prospect	Tue, 2 Sep 2008 07:00AM	WGR - More Bonanza Gold Intercepts - Mr Andrew Beckwith, MD
WESTGOLD RESOURCES LIMITED (WGR) Successful Completion of Rover 1 Drilling Project	Tue, 10 Jun 2008 11:00AM	WGR - Bonanza Gold Results from Rover 1 - Mr Andrew Beckwith, MD
WESTGOLD RESOURCES LIMITED (WGR)	Wed, 30 Apr 2008 12:30PM	WGR - Quaterly Update - Mr Andrew Beckwith, MD
WESTGOLD RESOURCES LIMITED (WGR)	Thu, 21 Feb 2008 11:00AM	WGR Investor Update - The Rover Field, A New Generation of Gold-Copper and Base Metal Discoveries - Mr Andrew Beckwith, MD
WESTGOLD RESOURCES LIMITED (WGR)	Tue, 1 May 2007 12:00PM	WGR - Quarterly Report - Mr Tony Martin, CEO
WESTGOLD RESOURCES LIMITED (WGR)	Fri, 23 Mar 2007 11:30AM	WGR - AGES 2007 NT Seminar: Overview of NT Exploration Projects
WESTGOLD RESOURCES LIMITED (WGR)	Mon, 9 Mar 2009 11:00PM	Interim Results
WESTGOLD RESOURCES LIMITED (WGR)	Wed, 26 Nov 2008 11:00PM	Annual General Meeting
WESTGOLD RESOURCES LIMITED (WGR)	Thu, 29 Nov 2007 08:30AM	Annual General Meeting The Western Australia Club, 101 St Georges Terrace Perth WA
WESTGOLD RESOURCES LIMITED (WGR)	Thu, 15 Mar 2007 11:00PM	Interim Results
WESTGOLD RESOURCES LIMITED (WGR)	Thu, 30 Nov 2006 09:00AM	Annual General Meeting The Western Australia Club, 101 St George's Tce Perth WA
WESTGOLD RESOURCES LIMITED (WGR)	Tue, 14 Mar 2006 11:00PM	Interim Results
WESTGOLD RESOURCES LIMITED (WGR)	Fri, 25 Nov 2005 09:00AM 11:00PM Australia/WA	Annual General Meeting Western Australia Club, 101 St Georges Terrace, Perth, WA
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WESTGOLD RESOURCES LIMITED (WGR)

Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.

PRESENTATION BY MR. ANDREW BECKWITH, MANAGING DIRECTOR OF WESTGOLD RESOURCES LIMITED (WGR)

“Resources Rising Stars”

http://www.brr.com.au/event/52067

 

FRIDAY, OCTOBER 3, 2008, 01:00 PM.

 

            WGR   Welcome everybody (inaudible) (00:00:03) today so everybody can hear. I think he knows who I’m talking to. Firstly, thank you, Jackie and thank you to

10                    Nicholas of Read Corporate and ((inaudible) (00:00:00;20) for putting on this conference today. Thank you to all attending and hanging up for the rest of the day, final presentation.

 

                        Today, I want to talk about high grade gold. Our recent discovery at Rover 1

15                    is a fairly exciting discovery in our books and its potential investment impact it miay have on you, it certainly will on our shareholders, it depends whether you are there... as Jackie said, I’ve got 20 years experience. I like to find orebodies and I believe we found a winner with Rover 1.

 

20                    Our disclaimer, basically, you should get your own advice before investing. Everybody should know that by now.

 

                        The presentation, I’ll go through the company structure quickly. Our corporate strategy, while we believe we’ve made the right strategy choice,

25                    high grade mines, our Bonanza Gold intersections we’re getting at Rover 1, and the serious impact those results may bring to us in the near future. Summarize that at the end and then we’ll go and have a drink.

 

                        So, Westgold. Westgold had its 20th anniversary happened last week. It’s

30                    metamorphosed itself quite a number of times in that period. In the last three years, it’s been all about consolidating it, cleaning it up, it is familiar exploration in a prime prospective region, west of Tennant Creek. We have 142 million shares on offer. Market cap changes everyday, roughly $40 million. We had $5.2 million cash at the end of June. We are drilling. We’re

35                    active. We have an experienced Board as well. I’m probably the least experience with 20 odd years, so we’re there with everybody else. Our top 20 shareholders, 67% to the company and our major shareholder, Metals X, roughly 29%, very strong supporters and we also have a major investment in Aragon Resources we‘ve floated last year. Aragon Resources is exploring

40                    out WA tenements we used to own. They are self-funded, self-managed, and we are sitting over 37%. They are exploring some nice high grade results around the Yandal project and they’ve also been able to secure a fairly exciting phosphate project in Georgina Basin in the Northern Territory. So we look forward to some pretty nice results coming out of it… that coming.

45                    Simple, experienced, and we’re just getting on with the job.

 

                        … we’re not going on the slides… here we go. Our strategy has been to divest projects except for Rover. Rover is our company maker. We solely believe that it will happen. Exploration upsides, whatever your company wants, we want advance prospects, we want resources, we want mines, and we want to turn in the dollars in the end. You’ll see on the left hand side, it’s located just west of Queensland. We want to target multi-commodities. The last presentation is the ultimate example, if you ask me, and I’m still there

5                      (inaudible) (00:03:52) three years ago. Grade is king in my mind, grade makes money, and we want a cash flow at the end of all these.

 

                        The Rover Project provides multi-commodity mineralisation in the form of copper-gold with then silver-cobalt-bismuth potentially silver and iron. We’ve

10                    already discovered the resource of lead-zinc-silver with a little bit of copper-gold, that’s an open resource. I won’t talk about that one today. It’s all about Rover 1. Upside long term is 20 odd targets. We haven’t had a drillhole in. They are similar to, both the lead-zinc deposit, but also our exciting Rover 1. Rover 1 and then 142, another prospect, our copper-gold targets, Explorer

15                    108, the lead-zinc resource we’ve put out earlier this year.

 

                        So, Rover 1, we’re looking to build up a resource in the next... early 2009, truly just wait for six months. We want to then push that to development. It’s looking good and encouraging. We have to just to find the right volume now

20                    and drilling the (inaudible) (00:05:05) is required to do that.

 

                        So, Tennant Creek, Rob Bills earlier with Emmerson talked about Tennant Creek as a nice lead-in for myself. I don’t need to repeat it, 5 million ounces is basically all you need to know, high grade mines, half a dozen mines. It is

25                    an exceptional area. It covers an area that sort of dimension. Rover 1 covers a similar dimension over the same rocks, just southwest of Tennant Creek. We have a 1,000 km2, we’ve granted tenure, in yellow. We have over 12,000 km2 tied up and what we believe is future prospective ground. Infrastructure wise, we are close to Tennant Creek, the highway, the railway, and a gas

30                    pipeline. But importantly, high grade orebodies is what we’re about and as you’ll see up here, I’ll pull the top for 4,5 up our Tennant Creek, the biggest thing Warrego, 1.6 million ounces at 7 g, that’s an overall average. Internally, it had a million ounces in a small part of the orebody going 16 g. Nobles Nob, Juno, it’s the one that stands out 56 g average. Lot’s of money made at that

35                    one. White Devil, that’s was a normally cash flow to get them started. All in all, that’s an average of a million ounces at rough 17 g. We would like one of them and it’s our target so as basically, we want a million-ounce top resource. When do we get the 17 g? Drilling will tell.

 

40                    Like Rob said, we also see if they would have copper mineralisation in Tennant Creek and you’ll see that in our Rover 1 drilling as well... high grade, high value, the thing you got to remember. The other thing that you’ve got to remember are these bodies are small, that’s roughly a 200-m long pit there, 100 m high and 25 m wide. So it’s not much bigger than the length of

45                    the MCG which is probably the wrong thing to talk about in a Rugby area. But nice people know the MCG, I know nothing about Rugby. So that’s the sort of dimensional orebody, it’s not that big.

 

                        Cash cows, high grade, high value print money. It’s amazing what you can get off things made as well. We talk of high grade and I just wanted to make sure that everybody understood the importance of high grade. If we have a mine and it has four (inaudible) (00:07:48) cropping out of it, each one with

5                      different grade starting at 4 g, 6 g, 8 g, and 10 g. If the cost of production to get that gold out, cost 3 g overall, it’s a pretty simple calculation that the first one is only a 1 g surplus, a 3 g surplus, a 5 g surplus, and a 7 g surplus. So it’s very simple, doubling the grade doesn’t double your profit. Doubling your grade can exponentially increase your profit. So high grade is very

10                    important.

 

                        Rover 1 in itself, we’ve been getting some very bonanza grade in sections. They are relatively deep at around 400 dirty km. We are expanding that mineralisation, both up and down dip, and down plunge. We believe we can

15                    pull it up further up to cost of the service to improve the economics, but if these grades at Tennant Creek show us we can buy them and make money. It’s multi-commodity. It’s got copper, gold, cobalt, bismuth, silver, and potentially iron as a by-product. As Rob said earlier, it’s an IOCG System and very similar to Prominent Hill, Olympic Dam, and many of the

20                    Queensland deposits around the mine as you know tell us the district. We’re drilling in around the clock, we have been since March and we believe it’s a major discovery.

 

                        So quickly, I’ll give you a glimpse of the results we’re getting. This is the first

25                    section we’ve basically drilled and that the Discovery Hole is roughly 66 m at 17 g gold equivalent, so that includes the copper-cobalt-bismuth as credits. (inaudible) (00:09:41) about Discovery Hole when all the previous drilling and worse off. a little bit of limited drilling that we used as a bit of a of a hedging for this one. The best previous intersection was roughly 10 m at 10 g, so

30                    we’re pretty excited when we hit this and we couldn’t tell from the (inaudible) (00:09:58) when we first looked at. It’s a down dip with another 66 m at 10.7 g and then up to 49 m at 16 g gold equivalent. So it’s important.... scale is pretty hard to see on these slides. Basically, what I can point out surface is a 120 m of copper at the top and then lays flat line. In terms of here, it’s about

35                    400 m. We have open mineralisation, both up and down dip, and it is never been a drillhole in any of those directions. So, 20 m over, it doesn’t sound a lot but when you’re chasing these small high grade orebodies, you want to make sure you don’t lose it. So we’re going for systematic, conservative, quite small step ounce, 28 m at 16 g plus a much lower grade, 12 m at 3 g,

40                    and then 21 m at 40 g, all looking very nice.

 

                        The next slide, we’ve drilled four holes on this one and the first one was 32 m at 22 g, 6 m at 48 g, and we’re still waiting on the results from those two holes. It’s quite obvious the very top hole, it’s unlikely we’re getting

45                    mineralisation there, so I’m not counting on that. The rocks don’t look right, but we still have to work out what’s going on geologically there. Plenty of room for up-dip and down-dip in this one in particular, but along plunge which is the next thing you see in the next few slides.

 

                        So we’re now looking at a long section. This is like looking at a book at its cover and trying to depict the story through the cover as opposed to the last sections which have been looking at the spine of the book and trying to show the mineralisation in the book. So what these purple bars here represent are

5                      the intersections for the gold. So I’ll just bring them up again, they’re the same as we saw before. Scales, the other thing to notice here those squares at 200 m, what you’ll see there is a series of dots come up. These dots down here, of over current ones really, on the western side of the current mine mineralisation. The green dot is our current hole that we’re drilling now and

10                    the most important thing is that yellow sign is, we’ve got some very encouraging geology. We now know what we’re looking for. It’s got reasonable gold in it and the hope is that that’ll be a similar sort of intersection. Very encouraging, it means the down-dip plunge at least is well and truly open and as you can see, our up-dip and down-dip, the smaller

15                    areas. It’s all open. Drilling will tell us how far and down deep it goes. So where we see the greatest potential? It’s in the oblique large areas, the up and down plunge and creates a fairly attenuated body, elongated I should say, attenuated means much smaller. Another point to notice here, the five great dots out to the west is historical drilling done by Peko and it shows

20                    there’s two copper and gold out to the west that we haven’t even followed up. (inaudible) (00:13:43) just to move forward. At the end of the day it’s run on batteries.

 

                        Okay. So this slide now is looking at the copper mineralisation and Rob

25                    talked about this earlier, there seems to be a halo. Generally, the copper sits above the gold and the yellow-orangey bars here represent the copper intersections that we’re hit with our drilling. Some of the numbers we’ve been getting there, 15 m at 0.50%, 24 m, 100 m at 0.60%, 45 m at 1%, etc., etc., sort of that order. Now, some of that mineralisation co-exists with the gold

30                    mineralisation and would be mined concurrently but then there’s the potential. Is there something else left afterwards since we attack the gold. So, we have two end member. Is it the bigger copper-gold body or is it a smaller high grade gold body? Once again, the five holes out to the west the Peko had completed, Pretty well have interesting copper there, but we also have 8 m at

35                    2% to one of those holes. Some pretty nice encouragement.

 

                        So what I’d like to do now is, I’ll talk about the MCG and how big things are. I talked about Warrego, being one of the bigger ones in Tennant Creek. I’d like to now overlay about Warrego’s size orebody will look like at Rover 1.

40                    That’s roughly the outline of Warrego, the orange being the copper mineralisation. This one started as a copper mine, they didn’t know about the gold. It wasn’t until well into its history that they’ve found the gold. When they found it, it was spectacular but basically, we’ve defined roughly 100 m of strike here mine mineralisation. If this hole comes in like we’re expecting with

45                    some good results, that’ll push it out to 150 odd meters. So a lot (inaudible) (00:15:37) the center of the MCG now from starting at one end. When you look at this Warrego’s orebody, gold orebody, wasn’t that big. It was exceptional grade, but it wasn’t that big, but hard to find… now that you’d find many, you’ve got to be careful how you drill them. Our drilling is slow. It’s all diamond drilling. It’s all navigational drilling. We have our five years but we want the holes to be in certain spots. There’ll be a continuous flow of results but they don’t come fast but the time it takes to drill them and the time it takes to process them through the labs just takes time. So it’s important to realize

5                      the size of the orebodies.

 

                        These are just few a slides of how we’re operating. Basically, we have a small camp. It’s only 100 m to 200 m off our drilling sites. It houses about 14 people, easily ramped up before we went for extra rigs. It’s a typical terrain.

10                    That’s the actual drill rig sitting up there on the left hand bottom photo. Occasionally, we use a chopper for access. But essentially, what it’s all about is logging the core, working at the geology, and finding that mineralisation.

 

15                    So, serious impacts, it’s what we’re here for. We’re not here to listen to that the geology I’ve worked out. This was created, Wolf Creek (inaudible) (00:17:02) created from a fairly small body that hit the earth, it’s 900 m across. It stands out like the proverbial even on Google. So how can Rover 1 make an impact on Westgold? I believe it can make a serious impact. So I hunted for a company that says she found an orebody, so we could compare with what Westgold might be and it’s quite difficult to find a company that’s recently found a high grade orebody. Avoca had found one and in the last few years and have had a fairly serious impact to their share price and their market cap.

 

25                    I’ll start it off with the initial resource after their acquisition (inaudible) (00:17:42) they found 3 million tonnes at 5 g, that’s about 0.5 million ounces. But it didn’t push them up that much, they went from probably $20 million cap sort of roughly 50. So then we went to the feasibility study and to find the reserve essentially, 3.4 million tonnes, a bit over 5, pushing it up to 600,000

30                    ounces and now they’re up around to 100 million market cap. They’r currently, just under a million ounces into production and been through the development first. Their market cap is now $400 to $500 million probably here and in there today. They’re underground mining. They’ve got a 1 million-tonne per annum plant and they’re looking to produce 170,000 ounces per

35                    year. That’s a nice story, I think, and it’s one that I think it would be good for Westgold (inaudible) (00:18:41) that. So, that’s taking it from 20 million to 400 million in about 4 to 5 years and looking to grow.

 

                        How does that compare with Rover 1 at Westgold? We’ve done the

40                    acquisition and (inaudible) (00:18:56) that down, we’ve discovered and that’s actually one of the hardest phases to find these things is not easy. We’ve got drilling underway and in the first half of next year, we plan to put a resource out.  Then obviously, look forward to a.....hopefully moving into feasibility in the mine development phase. So if you look at Avoca’s Trident discovery and

45                    the impact it has had on their company, I think the Rover 1 has the potential to impact Westgold significantly.

 

                        So where are we now? We’ve got news today, $0.22 I think, we’ve got 25 at the start, we’ve been up as high as nearly 50 over the last twelve months. We’ve spent for the last two years, basically, acquiring the project, paying it down. (inaudible) (00:19:54) 5 million tonnes of lead zinc resource. (inaudible) (00:20:00) hears about that today. The big impact is we’ve hit Rover 1 but found high grade of gold and we believe we’re on to

5                      something serious. Market uncertainty that should be market stress or something like that for me but that’s not covered in personal statement but once again, it outlines the White Devil Mine, it sub a million ounce production at 15 g, it built Normandy in its early days.

 

10                    Somewhere, I want to start at the bottom and work up to Rover 1 this instance, we had exploration upside, a lot of it. We have over 20 targets, magnetic and gravity coincident with just a considerable amount of money obtaining about 6,000 gravity stations to complete coverage over our tenements and we are processing up that now to rank those targets. We’ve

15                    gone out, we’ve done some lead zinc which we didn’t we expect to find the resource, it’s a new style of mineralisation opens up the whole field for a new style mineralisation that we knew about. It’s not our highest priority but its robust high grade mineralisation, it’s open in all directions and we can make that grow, we just need to work out what it needs to be, to be a mine.

20

                        Rover 1, it had some outstanding gold-copper polymetallic mineralisation to- date. We know we can expand on it. We’re drilling it. We believe we’ve got the target (inaudible) (00:21:33) how big that target is. It’s probably symptomatic up to date, the market is getting black, and I’d like to think we’re

25                    amazing after darkness.

 

                        Thank you.

 

INTERVIEW CONCLUDED

 

 

 

 

Contact brr@brr.com.au for more information

 

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