(MENAFN- ProactiveInvestors - Australia) WPG Resources Ltd (ASX:WPG) has completed its JORC 2012 Mineral Resource and Ore Reserve estimates for the wholly owned Challenger gold mine in South Australia.
The 30 June 2016 Mineral Resource estimate Totals 838,000 tonnes at 9.76 g/t gold for 263,000 ounces of gold.
The 30 June 2016 Ore Resource estimate totals 558,000 tonnes at 4.98 g/t gold for 89,000 ounces of gold.
WPG recently increased its ownership in Challenger to 100% from 50%, effective from 1 August 2016.
The company has been looking at expanding operations through the development of the nearby Tarcoola gold project.
Tarcoola gold project
A recently updated definite feasibility study on the Tarcoola gold project estimates very favourable economics.
With only $4 million capital expenditure, WPG estimates it can produce 20,000 ounces of gold per annum at an all-in sustaining cost of A$916 per ounce.
The mine life is two years but WPG see excellent potential to identify additional open-pittable deposits.
Ore from Tarcoola will be trucked to the company's flagship Challenger gold mine nearby.
WPG anticipate approval of submitted environmental approvals at the end of the current quarter enabling production at Tarcoola in the December quarter.
September quarter gold production
Total revenue from bullion sales was $20.1 million from the sale of 11,425 ounces at an average gold price of $1,775 per ounce.
All-in-sustaining costs (AISC) in the quarter were $1,493 per ounce recovered.
The Challenger mine continued to ramp up to full production with mine and mill reaching planned performance rates by the end of July 2016.
Total ore mined from underground for the quarter was 108,451 tonnes at 3.11 g/t gold.
Recovery of 94.5% was slightly impacted by the lower grade surface stockpile material.
Total ounces recovered were 12,138, while gold sold was 11,425 ounces.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.