UNDERGROUND

Tarcoola a challenge but WPG still digging it

WPG gets less gold than it expected from South Australia.

The Challenger gold mine in SA.

The Challenger gold mine in SA.

Through June WPG recovered 7155 ounces of gold from its operations at Challenger and Tarcoola and 17,818oz in the June quarter.

Production for the full year was 54,338oz.

According to WPG the June amounts were records since operations restarted under WPG's ownership two years ago.

However, despite the record amounts production was still not as high as anticipated.

Gold recovery from Tarcoola was affected by the displacement of a high grade ore pod by an unmapped thrust fault, however, with grade control drilling for the final benches finished and rescheduling underway that displaced high grade ore pod is being mined.

Challenger has also been down a development jumbo and haul truck since early June, after capital development work on the Jumbuck decline was halted and the vehicles were demobilised.

WPG has indicated work will remain on hold at the Jumbuck decline pending the results of ongoing resource definition drilling and any successful refinancing discussions.

The company told the Australian Securities Exchange its quarterly result was particularly pleasing as it reflected the strengthening of operational performance at Challenger.

This was driven, WPG said, by higher stope grades; a direct reflection of ongoing management of planned dilution in mining operations; and improved orebody performance.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

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