Western Gold inks ore purchase agreement with Forrestania Resources Gold Duke is located about 35km south-west of Wiluna in Western Australia. Credit: Parilov/Shutterstock.com. · Mining Technology · Parilov/Shutterstock.com. Shree Mishra Fri, November 13, 2026 at 8:13 AM EST 2 min read WGR.AX 0.00% FRS.AX -1.56% GC=F +0.09% Western Gold Resources has signed a binding agreement with Forrestania Resources to supply and process ore from its Gold Duke project, located 35km south-west of Wiluna in Western Australia's Northern Goldfields.
Under the terms of the ore purchase agreement (OPA), Forrestania may purchase up to 1.1 million tonnes (mt) of ore from the Gold Duke project in 30 months.
Pricing will be determined using a formula that takes into account the grade of ore, metallurgical recovery rates, and the prevailing gold price at the time of delivery.
The agreement allows ore from Gold Duke, which is fully owned by Western Gold Resources, to be processed at Forrestania's Edna May Processing Plant near Westonia.
Western Gold Resources will remain responsible for arranging and paying for haulage of ore between Gold Duke and the Edna May facility.
In addition, Western Gold Resources will pay a one-off plant access fee of A$50,000 ($34,112.20).
The contract does not set a production target, and the stated 1.1mt cap is a contractual maximum.
The arrangement includes an option for Western Gold Resources to pursue an alternative processing solution if a more economical option become available.
Forrestania acquired the Edna May Gold Project in September 2026 and is refurbishing this plant along with its Lake Johnston facility.
Operational commencement for deliveries under the new agreement will depend on the availability of the nominated processing plant.
Western Gold Resources managing director Cullum Winn said: "Securing a binding ore purchase agreement with Forrestania is an important milestone for the Gold Duke Project and allows WGR to generate cash flow from our core asset.
"Following the deferral by WMC of toll milling, it gives Gold Duke a clear processing pathway through established processing infrastructure, without the capital cost and time of building our own plant."
Meanwhile, Western Gold Resources' toll milling agreement with Wiluna Mining Corporation remains in place.
Wiluna deferred third-party toll operations at its processing plant in August 2026.
Western Gold Resources has said it continues to discuss possible resumption of toll milling with Wiluna Mining.
The company is updating its mine plan and project economics to reflect the new processing route secured under its arrangement with Forrestania.
"Western Gold inks ore purchase agreement with Forrestania Resources " was originally created and published by Mining Technology, a GlobalData owned brand.
