Stock of the day: ASX WGR

January 15 2025

FutureGate | WGR (ASX:WGR) has released an updated resource estimate for its Gold Duke Project, now standing at 2.95Mt at 2.07g/t Au, equating to 235,000 oz of gold (JORC 2012).

The production target outlines an estimated 447Kt at 2.55g/t, with projected gold production of 34,000 oz at a $3,500 gold price.

The project is anticipated to generate a cash surplus of $38.1 million after covering all costs, with a net present value (NPV) of $35.1 million at an 8.5% discount rate and an internal rate of return (IRR) of 617%.

Pre-mining costs are estimated between $2.1 million and $2.5 million, with total funding needs ranging from $6 million to $7.2 million, based on a multi-pit design and a 12-month mine life.

These economics are based on only 51% of the current resource, amounting to 234,000 oz of gold, revealing significant upside potential.

The project has a market cap of $10 million, and SSH Group Limited (ASX:SSH) has been selected as the preferred mining contractor, offering a deferred payment capital facility to help manage cash flow during operations at the Gold Duke Project.