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WPG Resources Intersects Further Gold At Tarcoola Project

WPG Resources' (ASX:WPG) drilling has enhanced its Tarcoola gold project in South Australia's Gawler Craton with shallow intercepts of gold returned from exploration of the oxide zone undertaken in November 2014.

Selected mineralised core from the five diamond holes will now be sent for metallurgical testwork to develop and optimise heap leach metallurgical and process design flow sheets for the project.

Notable results from the oxide zone drilling are:

- 4 metres at 3.22 grams per tonne gold from 31 metres;
- 3 metres at 2.8g/t gold from 36 metres;
- 3 metres at 3.88g/t gold from surface; and
- 5 metres at 1.7g/t gold from 18 metres.

The geometry of the mineralisation within the oxide zone in these holes is unknown, due to probable remobilisation during the weathering process.

It is likely that supergene enrichment of gold has occurred near the base of oxidation.

In January, drilling in the primary ore zone returned 6.5 metres at 8.77 g/t gold, including 1.7 metres at 24.61 g/t gold grade.

Data has confirmed Tarcoola could be developed into a conventional open pit mining operation with associated heap leach processing, producing 20,000 ounces of gold per year with initial mine life expected to be four to five years.

Price Catalysts for Tarcoola

Q1 2015: Complete heap leach study, open pit design and completion of feasibility study; negotiate Native Title Mining Agreement
Q2 2015: MLP submission
Q3 2015: MLP approval, Contracts for establishment of open pit mining operation, heap leach processing and associated infrastructure
Q4 2015: PEPR approval, Commence operations

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