PERTH (miningweekly.com) – Gold hopeful WPG Resources will sell a large block of land in Port Pirie for A$750 000 to fund the feasibility study on its Tarcoola gold project, in South Australia, and to take the project through permitting.
The confidential sales contract would be settled in September, subject to the completion of due diligence by the buyer and the satisfaction of the conditions precedent, WPG said.
The company acquired the industrial land four years ago as part of its plans to build an integrated iron-ore receival, storage and load-out facility for its iron-ore assets.
However, with the shift in focus to gold, WPG, at the end of 2014, took the decision to divest of the 4.5 ha of land.
The feasibility study on the Tarcoola project would likely be completed by the third quarter of this year and, in parallel, WPG was progressing the final permitting for the Tarcoola project.
The project was expected to produce about 57 000 oz of gold with some silver credits, over its four-year mine life. Preliminary estimates have indicated that capital expenditure will be tipped at about A$17-million, with all-in sustaining costs reaching A$1 020/oz of gold recovered.