Proactive Investor's  Instablog

WPG Resources (ASX: WPG) has affirmed its full commitment to the development of the Port Pirie bulk commodities export facility, which represents a pivotal component to the commercial development of both the Giffen Well iron ore project and the Penrhyn coal project in South Australia.

The company noted the content of two announcements to the ASX by Apollo Minerals (ASX: AON) yesterday, which stated that WPG's proposed iron ore export facility at Port Pirie has been placed on indefinite hold and that development approval limits the handling capacity to 3.2 million tonnes per annum.

"WPG's commitment to development of its proposed facility and to the township of Port Pirie is robust," the company said.

"Development of the facility is certainly not on indefinite hold and WPG now has a permanent staff presence in Port Pirie and actively maintains its assets there."

The proposed bulk commodities facility has development approval for 3.5 million tonnes per annum of capacity.

WPG has previously said, subject to its own priority use of the export facility, it welcomes and will facilitate third party users to utilise excess capacity.

The company has two advanced stage bulk commodities projects in central South Australia at Giffen Well and Penrhyn.

Giffen Well remains on target to delineate a Resource of between 390 and 500 million tonnes at between 33% and 38% iron.

WPG began a program of systematic Resource definition drilling at Giffen Well in late March, to form the basis for a Preliminary Feasibility Study.

Early drilling results have shown the potential for iron mineralisation, with three holes of a 15-hole diamond drilling program completed.

Meanwhile, Penrhyn hosts a coal Resource of 352.4 million tonnes, with around 336 million of that in the higher confidence Measured and Indicated categories.

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