WPG output falls in line with plan to lower costs

20th October 2017 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Gold miner WPG Resources has reported a decline in production for the September quarter, as the company implemented a new mine and mill plan aimed at reducing all-in sustaining costs (AISC) to about A$1 200/oz by the June quarter of next year.

The strategy, which was finalised in May this year, will require the completion of a pushback at the Tarcoola mine, in South Australia, the re-investment in the underground development of the Challenger mine, also in South Australia, the increase in the throughput at the Challenger mill and the systematic drilling at Challenger to bring deeper areas into the mine plan.

During the three months to September the pushback at Tarcoola was largely completed, and WPG also started the development into the Challenger Deep lodes.

The company also started Phase 2 of the Challenger Deeps drilling programme, and replaced its mining contractor.

WPG on Friday noted that disruptions to mining at the Challenger operation, owing to the transition of mining contractors, was expected and plans were put in place to mitigate this.

The mitigation plan included the treatment of low-grade surface stock material and the adjustment of Tarcoola’s mining schedule to haul additional ounces to Challenger.

As a result, gold production in the three months to September was recorded at 11 718 oz, compared with 13 909 oz during the previous quarter, while AISC increased from A$1 431/oz to A$1 625/oz.

However, WPG noted that as a result of the contractor changeover and the new mining plan at Tarcoola, production during the month of September improved, with 5 339 oz recovered at an AISC of A$1 350/oz.