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WPG Resources surges on bonanza gold grades from Tarcoola project

Shares are up 119% to $0.035 as gold shines brightly in volatile markets.
Challenger gold project
Tarcoola will be a significant contributor to production at the Challenger plant

WPG Resources Ltd (ASX:WPG) surged after receiving bonanza grade gold results from the Tarcoola project in South Australia.

An infill grade control drilling program in Perseverance Pit forms the basis for sustained increases in tonnages and grade of Tarcoola ore to be processed in coming months.

11 metres at 73.31 g/t gold

Best result was 11 metres at 73.31 g/t gold from 11 metres, including 1 metre at 607.75 g/t from 17 metres.

WPG is up to $0.35 in early trade, up 119% on Tuesday’s close, on strong volume of more than 25 million as gold shines brightly in volatile markets.

Other results include 19 metres at 26.74 g/t from 4 metres; 13 metres at 21.94 g/t from 6 metres; and 5 metres at 53.59 g/t from 18 metres.

“Significant contributor to production”

Bob Duffin, chairman, said: “A lot of time and effort has been spent in developing the

Tarcoola mine and completing the pushback late last year.

“We are now moving into an extended period of significant increases in both tonnages and grade of ore to be delivered to Challenger.

“Tarcoola will shortly become a significant contributor to production whilst we open up Challenger Deeps for systematic exploitation.”

Horizon is defined

The drilling provides definition of the 120-90mRL horizon, which will be mined from February through to June.

Assays have been received for 112 holes totaling 3,030 metres and further assay results are expected.

Grade control modelling will be finalised by early March where potential upside may be identified.

READ: WPG Resources to access high grade gold at Challenger Deeps

Tarcoola is southeast of the company’s Challenger Gold Project where it is developing the Challenger Deeps mine.

The first stoping of the M2 S2 limb is scheduled in late February.

Challenger Deeps is the down plunge continuation below the 215 shear of the heavily mineralised systems that have been mined at Challenger over the last 15 years.

Surface drilling in 2009 confirmed the continuation of these systems at least 280 metres vertical below the last stoping horizon on the 135 level of the mine.

This stoping was undertaken on limbs of the M1/M2 structures with mining at the time constrained by the mining lease boundary.

Securing of the adjacent mining lease by WPG now allows unconstrained mining to proceed down plunge.

READ: WPG Resources to grow gold resources with JV partner

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