Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed junior WPG Resources on Thursday told shareholders that it would fast-track the development of its recently acquired Tarcoola gold project, in South Australia, with the aim of starting operations late next year.
WPG acquired the Tarcoola and Tunkillia gold operations from fellow-listed Mungana Goldmines in May. Previous scoping and feasibility studies had defined a total resource estimate of some 26.3-million tonnes at Tunkillia, grading 1.04 g/t gold for 878 000 oz of gold, as well as 2.5-million ounces of silver, at the 100% level.
WPG said a review of data has confirmed that the Tarcoola gold project could be developed into a 20 000 oz/y gold operation. The project could be developed into a conventional openpit operation with associated heap-leach processing.
The project would have an initial mine life of five years.
The Tarcoola project currently has a resource estimate of 973 000 t, grading 3.12 g/t gold for some 97 000 oz of contained gold, spread across two main deposits. A third known prospect at Tarcoola could provide additional upside potential, WPG said.
“Our detailed review of the comprehensive data already available on this project has confirmed our confidence in the project’s pedigree and we believe a mining operation can be successfully and quickly developed at Tarcoola, which is technically feasible and economically viable with the current gold price,” WPG executive chairperson Bob Duffin said.
“This has prompted us to take the decision to fast-track development at Tarcoola and achieve early cash flow from the project.”
Duffin expected Tarcoola’s capital and operating expenditures to be low, considering the project’s modest size. He added, however, that there was growth potential through further exploration, noting that WPG had also identified synergies between Tarcoola and the adjacent Tunkillia.
The company would start its fast-track programme with a metallurgical drilling programme as soon as regulatory approval had been secured. The metallurgical studies would be completed by the fourth quarter this year, with operations expected to start by the fourth quarter of 2015.