Updated drilling results from Bluebird South Junction are encouraging and highlight likelihood of additional resources growth (update expected in November and is a key near-term catalyst). The emergence of the Polar Star Lode (intercept of 13.71m @ 18.02g/t) is currently not in our base case. This could materially increase the mining rate at the complex from 1.2mtpa to 1.5mtpa displacing some of the need for satellite ore feeds. We continue to see scope for further reserve upgrades, underpinned by the current total resource at Bluebird-South Junction of 10.7mt @ 2.8g/t. We currently incorporate a development of South Junction in our estimates and note there is upside to our base case forecasts from Polar Star. We reiterate our BUY rating on WGX and maintain our price targets of A$4.50 and C$4.20.
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