WPG Resources Ltd (ASX:WPG) has received further encouraging gold assays from the third fan of drill holes in its phase 2 drilling program at the Challenger Deeps within the Challenger mine in South Australia.
These holes were designed to target the M2 lodes at the 70mRL, which are three levels, or 65 metres, below the lowest production level at Challenger.
Some drill holes also intersected the M1 lode towards the end of the drill holes.
High-grade results below previous production level
Intercepts on the M1 and M2 lodes are:
- 0.83 metres at 9.33 g/t gold from 74.9 metres downhole on M2, 0.34 metres at 22.52 g/t gold from 106.45 metres downhole on M1 and 0.37 metres at 8.78 g/t gold from 111.80 metres downhole on M1;
- 0.78 metres at 5.62 g/t gold from 40 metres and 1.8 metres at 19.33 g/t gold from 89.14 metres down hole both on M2 shoot;
- 0.75 metres at 7.39 g/t gold from 90.08 metres downhole and 0.93 metres at 16.43 g/t gold from 130.76 metres downhole on M1; and
- 0.62 metres at 24.13 g/t gold from 32 metres downhole, 2.08 metres at 6.74 g/t gold from 54.10 metres downhole and 0.27 metres at 15.23 g/t gold from 68.60 metres downhole all from M2.
Potential to increase the ounces per vertical metre
The intersections observed on the third fan to date are very similar to the results received on the top two fans for the Phase 2 Deeps program.
The results are also similar to those in levels above the shear where multiple folds have been successfully mined at grades in excess of 5 g/t gold.
These additional folds, outside of those assumed in mine planning, also have the potential to increase the ounces per vertical metre above those used for initial planning purposes.
WPG is aiming to complete the remaining holes on the third fan of drilling in late February 2018.
WPG recently received a $20 million loan facility from the Byrnecut Group.
The funds will be progressively deployed over the next few months mainly at the Challenger mine.
WPG's plan is to de-emphasise short-term, high-cost remnant mining in the older parts of the mine, and put more focus on developing the Deeps which has the potential to be mined for many years to come.