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WPG investors excited by Tarcoola hits

Investors have taken a liking to WPG Resources' (AU:WPG) latest infill grade control assays at its Tarcoola project, South Australia, with its stock up more than 80% at market close.
WPG investors excited by Tarcoola hits WPG investors excited by Tarcoola hits WPG investors excited by Tarcoola hits WPG investors excited by Tarcoola hits WPG investors excited by Tarcoola hits

WPG's gold portfolio in South Australia

Haydn Black*

The news that Tarcoola may offer both improved tonnage and grade over the next few months saw WPG's market capitalisation jump to more than A$32 million (US$25 million) at one point when its shares were up at $0.036 from $0.016.

The drilling has been focused on areas at the Perseverance pit that will be mined between February and June.

Among the "spectacular" results were 11m at 73.31g/t from 11m, including 1m at 607.75g/t from 17m; 19m at 26.74g/t from 4m, and 5m at 53.59g/t from 18m.

Drilling is ongoing and, to date, assays have been received for 112 holes, confirming scheduled increases in grade and ounce profiles for the rest of 2017-18.

WPG said the bulk of the holes had lower values but still encountered economic intersections, validating the integrity of the resource.

Grade control modelling will be finalised by early March where potential upside may be identified, chairman Bob Duffin said.

"A lot of time and effort has been spent in developing the Tarcoola mine and completing the pushback late last year," Duffin said.

"We are now moving into an extended period of significant increases in both tonnages and grade of ore to be delivered to Challenger and Tarcoola will shortly become a significant contributor to production whilst we open up Challenger Deeps for systematic exploitation," Duffin said.

The company expects its combined Challenger and Tarcoola operations to yield 60,000oz of gold this financial year to end-June.

Exploration around the remote Tarcoola site has also offered promising results north and south of the Perseverance Shear, according to WPG.

*Haydn Black is a reporter at