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WPG Resources receives drill results from Challenger Deeps program

Published: 10:57 06 Dec 2017 AEDT

Drilling phases at Challenger underground gold mine
WPG owns a number of assets including two producing gold mines

WPG Resources Ltd (ASX:WPG) has received further encouraging gold assays from its phase  II drilling program within the Challenger Deeps section of the Challenger Gold Mine in South Australia.

These holes were designed to target the M2 lode which is 40 metres below the lowest production level at Challenger.

Results include 1.41 metres at 18.62 g/t gold and 2.86 metres at 10.41 g/t gold.

Unlocking Challenger Deeps is the key

When WPG agreed to buy the Challenger mine nearly two years ago, the investment thesis was to access the new Challenger Deeps area where resource and additional gold mineralisation were known to exist.

The Challenger Deeps mining lease has been granted to allow for the continued mining of the Challenger Deeps lodes down plunge.

Challenger Deeps can be regarded as a new mine accessed from existing infrastructure.

Phase II drill program

These results represent the second fan of drill holes from the phase II drill program at Challenger Deeps.

The intersections observed on both the top fan and second fan of the phase II drilling program are very similar to those seen in levels above where multiple folds were mined at 5+ g/t gold.

These additional folds, outside of those assumed in the mine planning, also have the potential to increase the ounces per vertical metre above those used for initial planning purposes.

READ: WPG Resources advancing various funding options for Challenger mine

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 the company is in the process of trying to extend the mine life through exploration and development of the Challenger Deeps area.

Ore from the Tarcoola open-pit gold mine is trucked 165 kilometres to Challenger’s mill.

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