WGX has released a maiden reserve for the South Junction deposit, which has increased total reserves at Bluebird-South Junction to 3.0mt @ 2.8g/t. The larger reserve will enable WGX to triple the mining rate at Bluebird-South Junction to 1.2mtpa, reducing the need to truck ore from regional satellite deposits. We see scope for further reserve upgrades, underpinned by the total resource at Bluebird-South Junction of 10.7mt @ 2.8g/t. We had already incorporated a development of South Junction in our estimates, but have made some modest adjustments to our forecasts, incorporating a higher mining rate at a slightly lower grade. We reiterate our BUY rating on WGX ASX, lowering our ASX price target 2% to A$4.20. We also initiate coverage on WGX TSX, setting a price target of C$3.80.
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