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WPG Resources drills out more gold in Challenger Deeps

Published: 15:00 29 Jun 2017 AEST

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Results included grades of up to 34.2 g/t gold

WPG Resources (ASX:WPG) continues to assay more gold at depth to its operating 100% owned Challenger Gold Mine located in South Australia.

Assays have been received from the latest four holes from its Challenger Deeps drilling program.

Results included grades of up to 34.2 g/t gold.

Bob Duffin, chairman, commented: “The results announced on 11 April, 17 May, 29 May, 22 June and again today clearly show the main Challenger lodes extend at depth at least 75 metres below the limit of current mine development, and that the structures are heavily mineralised.

“The Deeps drilling program will recommence in late August following development of a lower drilling cuddy as we recommence decline development below the 215 shear.

“We will continue this drilling program with the objective of testing the lodes to even deeper levels. The results to date are highly encouraging and give us further encouragement that the M1, M2, Aminus and Challenger West structures below the 215 shear will form part of our future mining activities at Challenger”.


Drill result details

The four holes were drilled in a vertical fan covering the 135-50mRL horizon and represent the furthest position away down plunge from the previous mining fronts.

Highlights include:

- 0.36 metres at 13.22 g/t gold from 74.36 metres;
- 0.34 metres at 34.20 g/t gold from 58.35 metres;
- 0.94 metres at 19.89 g/t gold from 79.00 metres;
- 0.23 metres at 15.15 g/t gold from 58.35 metres; and
- 1.00 metres at 8.31 g/t gold from 69.69 metres.


Next steps

During the next two months, mining of the decline will be restarted and Challenger Deeps will be mined down to the next production level at 115mRL, and additional diamond drill sites will be created.


Background

WPG owns a number of assets including two producing gold mines all located in the Gawler Craton region of South Australia.

- Challenger gold mine (100%);
- Tarcoola gold mine (100%);
- Tunkillia gold project (100%); and
- Western Gawler Craton JV (~28%).

The Challenger gold mine is WPG’s flagship asset and is aiming to produce 50,000 ounces of gold in FY17.

A mill expansion study is underway and drilling programs continue at the gold mine.

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