‘Spectacular’ gold results for SA mine send shares on a run

WPG Resources shares have doubled after the company announced “spectacular” gold exploration results at Tarcoola in Far North South Australia.

WPG Resources shares have doubled after the company announced “spectacular” gold exploration results at Tarcoola in Far North South Australia.

The company, which also owns the Challenger gold mine where the Tarcoola ore is processed, said drilling to extend its gold resource had delivered great results.

“WPG Resources is pleased to advise that a number of spectacular gold intersections have been received from the current round of infill grade control drilling in the argillic altered zone of the Perseverance Pit,’’ the company said in a statement.

“This drilling provides definition on the 120-90mRL horizon which will be mined from February through to June and forms the basis for sustained increase in both tonnages and grade of Tarcoola ore to be processed over the coming months.’’

The drilling included intersections of 11m at 73.31 grams per tonne of gold from a depth of 11m.

There was also a 19m intersection at 26.74g/t and 13m at 21.94g/t.

“A lot of time and effort has been spent in developing the Tarcoola mine and completing the pushback late last year,’’ chairman Bob 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.”

The company said drilling was ongoing.

WPG shares were up 1.4c at 3c at 1.30pm after trading as high as 3.9c.