WPG (ASX) Ann: Gold drilling at Challenger Deeps continues at depth

Originally posted by chris1983 ↑

I believe Kingsgate stopped mining the lower sections of the M1 lode due to lower grade and they were also in the wrong area as they approached the 79 fault. They didn't fully understand the geology down there. It was the 215 sheer which caused the gold lodes to be separated/truncated against the original lodes and not the 79 fault. Also they had an issue with the licenses. They saw challenger west a lot easier target which is fair enough. That gold lode in itself was still profitable for Kingsgate at the time.

So as we can see there are many factors why they moved away from deeps. When Kingsgate sold Challenger WPG management still had the license issues to deal with. It's only due to smart management From both parties realising that a beneficial mutual agreement was the best way forward.

I see no reason why they couldn't mine it profitably at the current gold price if grades continue at depth and if the veins thicken at depth then watch out. The initial results indicate very good grade and some solid width on those gold veins. Kingsgate wrote the gold resource off in deeps when AUD gold was roughly 1300 an ounce. That's a substantial difference to today's price.

Your question related to how quickly can we sell it..well pretty quickly. We have a mine that has no current issues. The only restriction is the mill throughput. That's what investors on the sidelines don't understand. They can go buy explorers worth multiple on the market cap of WPG yet here we are with a company drilling out which I believe to be a substantial gold discovery and we have a mine to process the discovery. Crazy. When we finally are re-rated I think a lot of us will feel relieved that we were on the money with our research.

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Hello Chris,
thank you for your great input again.
I am sitting on more shares than ever before.
What people don't understand...if you have a stock, well researched, proofed successfully management with best skills, projects, tennements, plant with a giant huge upside potential, buy and hold tight. Close your eyes, be calm, when everybody is selling it down. Accumulate. Wait, be patient.
This is a wealth growing system.
So, i will lean back and wait with full confidence, WPGs management will drive the company to success.
Best of luck everyone,
Mikro