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WPG Resources Ltd Defines Ore Reserve At Challenger Gold Mine

WPG Resources Ltd (ASX: WPG) has defined an ore reserve at the Challenger Gold mine in South Australia which resumed production and site operations in May 2016.

Total underground and lower grade surface stockpiles ore reserves estimate at Challenger are 557,800 tonnes grading 4.65 g/t for 83,400 ounces of gold.

The Challenger gold mine resumed production and site operations, with the first gold bar produced under the mine's new owners, WPG Resources and joint venture partner Diversified Minerals, an entity within PYBAR Mining Services.

The mine is run through a 50/50 joint venture with PYBAR, known as the Challenger joint venture (CJV).

WPG acquired the Challenger gold mine and South Australian exploration assets for $1 million from Kingsgate Consolidated (ASX:KSN).

The Challenger gold mine resource was updated in May to 277,000 ounces of gold at a high average grade of 9.11 g/t.

Challenger has produced over one million ounces of gold since it opened in 2002 until being temporarily suspended by the mine's former owner in March, 2016.

WPG was granted a second mineral lease at the Challenger gold mine in central South Australia.

The second lease covers an adjoining area to the original lease known as Challenger Deeps, where a number of historical, significant gold intersections have been recorded.

Other gold projects

Tarcoola and Tunkillia are WPG's two other key South Australian gold assets.

A 10 year mineral lease was recently granted at the 100% owned Tarcoola gold project, covering the entire historical Tarcoola goldfield.

WPG will be in a position to develop the Tarcoola project, after receiving environmental clearance and finalising project finance.

During the June quarter WPG conducted a drilling program in the immediate vicinity of the Tunkillia 223 deposit. It received encouraging gold assays, including 14 metres at 0.86 g/t gold and 4.9 g/t silver.

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