Westgold Resources (ASX:WGX) said a scoping study for a brownfields expansion of processing capacity at its Meekatharra hub in Western Australia from 1.8 million tonnes per year to 2.9 million tonnes per year in fiscal 2028 has returned indicative capital of about AU$100 million with a payback period of nine months, according to a Tuesday Australian bourse filing.

The company said the expansion is expected to add about 47,000 ounces per year of gold production once commissioned, with life-of-mine gold production of 1.5 million to 1.8 million ounces at an all-in sustaining cost (AISC) range of AU$1,968 to AU$2,406 per ounce.

The project net present value improves by about AU$1.1 billion at a gold price of AU$5,500 per ounce, increasing to about AU$1.6 billion at a spot gold price of AU$6,000 per ounce, the filing added.

Brownfields resource definition drilling and open-pit optimizations have begun, with opportunities proximate to the Meekatharra hub supporting the expansion case, it added.