4mil mc 1mil in bank iron ore copper gold

there starting gold copper drilling in september, they have aquired a iron ore aquisition, 16mil shares on issue $4mil market cap, $1mil in bank, to cheap market starts to move this could surge to .40-.50 due to the low amount of shares on issue

read below quartely & todays aquision:


Western Plains Gold Ltd
ABN 51 109 426 502
PO Box N239, Grosvenor Place NSW 1220, Australia
Level 11, Kyle House, 27-31 Macquarie Place, Sydney, NSW Australia
Telephone (+612) 9251 1044
Facsimile (+612) 9247 3434
Email [email protected]
Web www.westernplainsgold.com.au
24 July 2006
The Company Announcements Office
Australian Stock Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
SYDNEY NSW 2000
Dear Sirs
WPG’S QUARTERLY REPORT FOR THE PERIOD TO
30 JUNE 2006
Western Plains Gold Ltd (“WPG”) is pleased to provide the following report on exploration
activities conducted during the three month period ending 30 June 2006. Other information on the
Company’s projects and its previous announcements are available on WPG’s website at
www.westernplainsgold.com.au.
HIGHLIGHTS
�� RAB drilling at the Yalcowinna Creek prospect within the Euriowie Project area has
defined significant copper anomalies associated with the projected southern extension of
the mineralised zone and coincident with the large EM anomaly.
�� Significantly anomalous gold values have been recorded over short intervals in the core
from the two diamond drill holes completed at the K1 prospect within the Mulyungarie
Project area. The upper part of the ironstone body in DDHK1-1 averaged 0.53 g/t Au over
the 9m interval between 177m and 186m including 2m at 1.65 g/t Au. Low level
anomalous gold values occur within part of the massive ironstone body intersected in
DDHK1-2. Assays of 7.12 g/t Au over a 30cm interval and 4.46 g/t Au over a 1m interval
were recorded from zones of prominent pyrite veining deeper in the hole. Further
exploration by WPG is planned for this large hydrothermal system.
�� Systematic RAB drilling at the Son of Man prospect within the Euriowie Project area has
defined significant copper anomalies co-incident with the 1,400m long gossan zone.
Deeper drilling is planned to test the most promising geochemical and geophysical targets.
�� Grid based soil sampling at the Achilles 3 prospect in the Lake Cargelligo Project has
partially defined a significant lead anomaly. Further sampling to close off the anomaly is
scheduled for the September quarter.
Western Plains Gold Ltd Page 2
June 2006 Quarterly Report 24 July 2006
LACHLAN FOLD BELT PROJECTS
Trundle NSW EL 4512, ELA 2768 - WPG 100%
Targets for two inclined RC percussion holes have been defined from the results of RAB and
aircore drilling at the Mordialloc Prospect. Systematic bedrock sampling during the previous two
quarters has outlined significant copper and gold geochemical anomalies with overall dimensions
of 1400 metres north-south by 950 metres east-west and with maximum values of up to 2,260
ppm copper and 1.0 g/t gold. The planned drill holes will test beneath co-incident gold-copper
peaks within the broader anomalous zones. Drilling is expected to commence during the
September quarter.
Figure 1
Mordialloc Prospect Simplified Geology & Copper Anomalies
A new exploration licence ELA 2768 of 100 units was applied for in the Bogan Gate –
Yarrabandai area and covers ground considered to be prospective for porphyry copper-gold and
epithermal gold mineralisation.
Western Plains Gold Ltd Page 3
June 2006 Quarterly Report 24 July 2006
Lake Cargelligo NSW EL 6367, EL 6530 - WPG 100%
Results of the detailed geological mapping and geochemical soil sampling completed over the
grid at the Achilles 3 Prospect during the March quarter were plotted and assessed. Results of the
soil sampling have partially defined a significant lead anomaly that extends beyond the current
grid. Additional grid lines will be pegged and soil sampled during the September quarter in order
to close off the anomaly.
A program of bedrock aircore sampling has been planned to test the six discrete magnetic
anomalies over which ground magnetic surveys and geological reconnaissance was completed
during the previous quarter. This program will involve the drilling of 103 holes for an estimated
3,000 metres and is scheduled to commence late in the September quarter.
Previous company open file data relating to the area covered by EL 6530 Shepherds Hill was
reviewed. Several areas have been selected for field investigation as part of a geological
reconnaissance mapping and sampling program that will commence early in the September
quarter.
Peak Hill East NSW EL 6342, ELA 2749 - WPG 100%
A program of bedrock aircore sampling has been planned to test targets defined from WPG’s
detailed aeromagnetic survey completed in 2005. Five anomalies have been selected for followup
investigation. The program will involve the drilling of 31 holes for an estimated 1,240 metres
and is scheduled to commence late in the September quarter subject to gaining access to areas that
may be planted in cereal crop.
A new exploration licence ELA 2749 of 11 units was applied for in the Peak Hill north area and
covers ground considered to be prospective for nearby Wyoming style porphyry gold deposits and
epithermal gold mineralisation.
BROKEN HILL PROJECTS
Euriowie NSW EL 5771 and EL 6188 – WPG can earn 60%
Three 50 metre spaced lines of RAB holes designed to sample the bedrock over both MLEM
anomalies defined from surveys completed during the previous quarter at the Yalcowinna Creek
Prospect were completed. A total of 65 holes were drilled for 553 metres. Results have confirmed
the mineralised zone intersected in previous WPG RC percussion holes continues to the south and
is present beneath the western linear EM anomaly. Geochemical data has extended the significant
copper anomaly associated with the mineralised zone for a further 250 metres under shallow
transported cover. In addition, significant copper values were also recorded from samples
collected from the bottom of holes drilled over the eastern deeper-seated EM anomaly. Copper
geochemical contours, MLEM Channel 20 contours and RAB hole locations are shown in Figure
2.
Western Plains Gold Ltd Page 4
June 2006 Quarterly Report 24 July 2006
Yalcowinna Creek
RAB Copper Geochemical Contours
Yalcowinna Creek
MLEM Anomalies
Figure 2
Yalcowinna Creek Prospect - Comparison of RAB Copper and MLEM Anomalies
A fence of two inclined RC percussion holes and one inclined RC percussion pre-collared
diamond hole have been planned to test both the geochemical and EM targets down dip of the
mineralised sub-crop. Drilling will commence as soon as a suitable rig can be contracted.
A RAB sampling program comprising 276 holes for 447 metres was completed at the Son of Man
Prospect. The sampling covered both the central section of the 1,400 metre long gossan zone
where previous rock chip sampling by WPG has returned values of up to 2.81% copper and 2.97
g/t gold and the MLEM anomaly located to the north of the gossan.
Results have defined a significant copper anomaly as shown in Figure 3. A drilling program
comprising four inclined RC percussion holes designed to test both the geochemical and EM
anomalies has been planned.
A program of reconnaissance RAB sampling on wide-spaced lines designed to cover the magnetic
and EM anomalies and the area where minor gossans outcrop at the B40 Prospect has been
completed. A total of 105 holes were drilled for 1761.5 metres. Some of the holes encountered
hard silcrete layers and were completed with percussion drilling. Other planned holes in this
silcrete zone were not drilled. No significant results were recorded. Targets for possible future
deeper drilling will need to be based on the interpretation of the deeper-penetrating geophysical
responses.
Western Plains Gold Ltd Page 5
June 2006 Quarterly Report 24 July 2006
Assay results were received for samples of sub crop/float of gossanous iron formation collected
during detailed prospecting of the northern B40 anomaly trend that extends for a distance of 4.2
kilometres through to the Strip Tank North prospect. Most samples were moderately anomalous
in copper up to a maximum of 0.89%. Five gossan samples from the Strip Tank North area
contained anomalous lead (up to 0.27%) and zinc (up to 995 ppm) values.
Figure 3
Son of Man Prospect - RAB Copper Anomalies
Mulyungarie SA NSW EL 4657 and SA EL 3478 – WPG can earn 60%
Diamond drilling in two holes for a total of 760.7 metres has been completed at the K1 Prospect
within the Mulyungarie project area near the SA – NSW border. The holes were designed to test
large semi-coincident magnetic and gravity anomalies and were partially funded by PIRSA under
the PACE Drilling Collaboration Scheme. The principal exploration target was the discovery of
IOCG mineralisation similar to that hosted in ironstone bodies in the Cloncurry and Tennant
Creek districts.
Both drill holes intersected significant intervals of quartz-magnetite-hematite (ironstone) lode
material situated within what is overall a much larger hydrothermal alteration system. Hole
DDHK1-1 intersected the ironstone body at a down hole depth 176.8 metres and continued in this
material to a depth of 298.8 metres where a large cavity and broken rod string forced the hole to
be abandoned.
Assay results for this hole show spotty, low-level gold values between down hole depths of 168
and 220 metres. The upper part of the ironstone averaged 0.53 g/t gold over the nine metre
interval between 177 and 186 metres including two metres at 1.65 g/t.
Western Plains Gold Ltd Page 6
June 2006 Quarterly Report 24 July 2006
DDHK1-2 was drilled 200 metres to the southwest of DDHK1-1 and was completed at a depth of
462 metres. The hole intersected the ironstone body, towards what is interpreted to be its western
end, from down hole depths of 125 metres to 185 metres. Below 185 metres, the rocks are
intensely quartz-k-feldspar-chlorite altered and contain sulphide bearing quartz-magnetitehematite
veins together with common disseminated pyrite and occasional veins of massive pyrite
up to ten centimetres thick. Narrow breccia zones are also present within the core.
Assay results for DDH K1-2 are similar to DDHK1-1 with low level anomalous gold values
present between down hole depths of 142.0 to 155.0 metres and 223.2 to 231.0 metres. The upper
interval coincides with part of the massive ironstone intersected in this hole. Two high grade
assays were obtained from the lower anomalous interval with 7.12 g/t Au recorded from a 30
centimetre massive pyrite vein between depths of 223.2 – 223.5 metres. An assay of 4.46 g/t Au
was recorded from the interval 225.0 – 226.0 metres co-incident with a zone of prominent pyrite
veining.
Figure 4
K1 Prospect - Simplified Geology and Drill Hole Locations
The assay results from the first two holes show that the K1 hydrothermal system and the enclosed
ironstone lode is significantly anomalous in gold. The system is also anomalous in rare earth
elements with up to 623 ppm cerium, 240 ppm lanthanum and 169 ppm uranium, probably due to
the presence of minor monazite that was noted in previous petrological studies.
Neither hole fully intersected the ironstone body which is interpreted from geophysical evidence
to be up to at least 200 metres thick and approximately 900 – 1,000 metres long. The depth to the
top of the body is approximately 120 metres. The drilling to date has only tested a small part of
this large hydrothermal system. There is considerable room within it for grades to improve and
further drilling is required to search for mineralisation of economic size and grade.
Western Plains Gold Ltd Page 7
June 2006 Quarterly Report 24 July 2006
Evidence from known, large iron-oxide associated copper-gold deposits such as Ernest Henry,
Prominent Hill, Eloise and Selwyn shows that the economic mineralisation is often not confined
to the main ironstone body and can be along strike, or alongside. WPG plans to drill a pattern of
vertical aircore/core holes into the bedrock to test for mineralisation in un-drilled sections of both
the ironstone body and the surrounding alteration envelope. This work will commence as soon as
a suitable drill rig can be mobilised to site.
Redan NSW EL 5795 and EL 6394 - WPG 100%
Assay results were received for rock chip samples collected during detailed geological
reconnaissance in the northern half of EL 6394. Samples were mainly of gossanous material taken
from some of the numerous small outcrops of quartz magnetite iron formation and cherty quartz
veins that are exposed in a very poorly outcropping soil covered area. Only one moderately
anomalous result of 727 ppm copper was recorded.
Kalabity SA EL 3297 – WPG can earn 50%
A small program of RAB drilling was completed over the two most promising uranium anomalies
defined from the initial regional calcrete sampling program. Results show only minor spikey
anomalous uranium values up to 89 ppm.
A total of 362 in-fill calcrete samples were collected in a follow-up program to the previous
extensive regional calcrete sampling program completed by WPG. No significant new anomalies
were defined by this sampling.
Yours faithfully
R H Duffin Gary J Jones
Chairman Technical Director
Competent Person
The review of exploration activities and results contained in this report is based on information
compiled by Mr Gary Jones, a Member of the Australasian Institute of Mining and Metallurgy.
He is a director of the Company and a full time employee of Geonz Associates Limited. He has
sufficient experience which is relevant to the style of mineralisation and types of deposits under
consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the December 2004 edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code). Gary Jones has consented to the
inclusion in this report of the matters based on his information in the form and context in which it
appears.
Western Plains Gold Ltd Page 8
June 2006 Quarterly Report 24 July 2006
Further Information
For further information please contact Bob Duffin, Chairman, on (02) 9251 1044 or 0412 234
684, or Gary Jones, Technical Director, on 0410 358 280.



Western Plains Gold Ltd
ABN 51 109 426 502
PO Box N239, Grosvenor Place NSW 1220, Australia
Level 11, Kyle House, 27-31 Macquarie Place, Sydney, NSW Australia
Telephone (+612) 9251 1044
Facsimile (+612) 9247 3434
Email [email protected]
Web www.westernplainsgold.com.au
24 August 2006
The Company Announcements Office
Australian Stock Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
SYDNEY NSW 2000
Dear Sirs
WPG TO ENTER THE IRON ORE INDUSTRY
Western Plains Gold Ltd (WPG) intends to enter the iron ore industry by the acquisition of
mining tenements in South Australia which host significant deposits of iron ore
mineralisation. WPG believes these project tenements can underpin viable mining projects
under current conditions.
Subject to the satisfaction of certain
conditions outlined below, WPG will
acquire all of the issued capital of
Southern Iron Pty Ltd (Southern Iron)
which has acquired rights to the Peculiar
Knob and Hawks Nest mining tenements
to the north west of the Prominent Hill and
Olympic Dam mine sites in South
Australia. The locations of these project
areas are shown in the drawing on the left.
Iron ore deposits on these tenements were
the proposed sources of ore for the South
Australian Steel and Energy (SASE)
project on which more than $80 million
was spent between 1995 and 2002.
A general meeting of WPG’s shareholders
will be convened for mid October 2006 to
approve this transaction. A summary of
the business of the general meeting is set
out below. Details will be provided in the
notice of meeting and explanatory
statement which will be sent to
shareholders in the next few weeks.
Western Plains Gold Ltd Page 2
Iron Ore Acquisition 24 August 2006
Peculiar Knob
The zone of high grade mineralisation at Peculiar Knob consists of two sub-parallel elongate
lensoidal bodies of massive specular haematite. The main haematite direct shipping ore (DSO)
body has a north-east to south-west trend and pinches and swells along a strike dimension of
approximately 1,100 metres. The mineralisation has been closed off at the north-eastern end but
remains open at depth. The body may extend along strike to the south-west beyond the limits of
the drilling but is thinner there.
The deposit has been drilled on sections generally 100 metres apart. The deposit was estimated to
contain an inferred resource of 14 million tonnes of haematite mineralisation at an average grade
of 63.2 per cent iron, in 1997. The phosphorus grade is 0.02 per cent, which is very low. Further
drilling was completed late last year, but assays are not yet available.
The extent of drilling data and the conceptual open pit design prepared by WPG are shown in the
drawings below.
WPG has planned a series of in-fill holes on 50 metre sections that will enable the status of the
resource estimate to be upgraded to the measured and indicated categories. Results of the drilling
will also facilitate the conversion of resources to reserves in conjunction with the detailed design
of an open pit mine and the preparation of a feasibility study.
Hawks Nest
Iron ore mineralisation at Hawks Nest occurs in seven separate deposits of varying size and grade
that occur over an area of approximately nine kilometres east to west, and four kilometres north
to south. Details of the individual deposits are outlined below and their locations are shown in the
following drawing.
Western Plains Gold Ltd Page 3
Iron Ore Acquisition 24 August 2006
Both haematite and magnetite mineralisation are developed at Hawks Nest. The fine grained
magnetite mineralisation is quite similar to the taconite iron ores of the Mesabi Ranges in
Minnesota and Michigan, and some of the mineral deposits in the Midwest region of WA.
The major phase of iron ore exploration at Hawks Nest was carried out in 1995 and 1996. During
this period, some 367 holes for 20,418 metres were drilled. The Kestrel and Buzzard deposits at
Hawks Nest were subjected to intensive resource definition drilling and related work in 2000 and
2001 that included 12,284 metres of reverse circulation drilling and 2,630 metres of diamond
drilling in a total of 108 drill holes. The other five known deposits, Goshawk, Harrier, Eagle,
Falcon, and Kite have had only a few exploratory drill holes. A small drilling program was
commenced in November 2005 but it did not proceed to completion.
Mineral resource estimates for the two main deposits at Hawks Nest were prepared in 2001 and
are summarised in the following table.
Deposit Category Million
Tonnes
Fe
%
P2O5
%
SiO2
%
Al2O3
%
LOI
%
Kestrel Measured Resources
Indicated Resources
Inferred Resources
Total Resources
100
60
60
220
37
36
36
36
0.13
0.13
0.13
0.13
37
38
39
38
0.83
1.00
1.05
0.94
0.58
0.79
0.78
0.69
Buzzard Measured Resources
Indicated Resources
Inferred Resources
Total Resources
1.8
3.1
1.8
6.7
62
60
59
60
0.06
0.09
0.15
0.10
9.3
10.9
8.7
9.9
1.2
1.7
2.9
1.9
0.8
1.4
2.5
1.5
Western Plains Gold Ltd Page 4
Iron Ore Acquisition 24 August 2006
The Kestrel mineral resource estimate was based on a 30 per cent iron cut-off grade, to a depth of
135 metres below surface. The deposit is in un-oxidised ore from a vertical depth of 50 metres. It
is largely magnetite. The Buzzard resource estimate is based on a 55 per cent iron cut-off grade,
to a depth of 125 metres. It is largely haematite.
Experience to date suggests that the Hawks Nest area is characterised by three main styles of
mineralisation:
• Large low grade primary or unenriched magnetite banded iron formation (BIF) bodies,
occurring as un-oxidised sections of the BIF horizons, with widths of 150 metres to 500
metres and depths of 500 metres to 1,000 metres. Grades are commonly 35 per cent to 40
per cent iron, in a fine grained matrix;
• Restricted zones of higher grade magnetite, with some grades in excess of 60 per cent
iron; and
• High grade haematite such as at the Buzzard prospect, in the form of a tectonically
brecciated BIF.
WPG considers there is good potential for the discovery of additional deposits, particularly of
higher grade DSO mineralisation, in the Hawks Nest area. This will be a priority target for the
Company’s drilling programs over the next 12 months.
WPG’s Development Plan
WPG intends to develop the Peculiar Knob deposit as a DSO mine, supplying high grade ore to
the Asian market, at a rate of up to 2 million tonnes per annum. WPG has set, as its strategic goal,
the commencement of production during 2008.
Hawks Nest is a potential source of DSO ore for blending with ore from Peculiar Knob, which
could extend the life of the project. The Hawks Nest magnetite deposits could support
concentrate, pellet and merchant pig iron production for the export market, and the Company will
conduct feasibility studies on these opportunities over the next two years.
The two project areas are close to the Stuart Highway, and several key items of infrastructure are
already in place. WPG will be able to access the high capacity standard gauge Adelaide-Darwin
rail network (along with its branch line to Whyalla), and has a choice of several ports in South
Australia and also at Darwin. Negotiation of access rights to infrastructure will form a key
component of WPG’s activities over the next 12 months. In that respect, the Company has noted
recent media reports relating to the construction of haul roads and rail sidings as part of the
development of the Prominent Hill gold-copper project, which is just 50 kilometres to the southeast
of Peculiar Knob. WPG is encouraged by these proposed developments, and believes there is
good scope for synergy between the projects.
Because the projects are located in South Australia, the Company is not constrained by the same
cost pressures and the competition for skilled labour that apply in much of the Australian mining
industry at the moment.
Western Plains Gold Ltd Page 5
Iron Ore Acquisition 24 August 2006
Southern Iron
Southern Iron is a private company which has executed agreements to acquire the Peculiar Knob
and Hawks Nest projects. It has approximately 30 shareholders. Bob Duffin, WPG’s chairman, is
a shareholder and director of Southern Iron. Bob Duffin played a key role in recapitalising the
failed Kingstream Steel Ltd and its reconstruction as the emerging iron ore producer Midwest
Corporation Ltd between 2002 and 2004, and is chairman of Ferrowest Limited. He has recent
and relevant experience in the iron ore industry.
Acquisition of Southern Iron
WPG will acquire Southern Iron for the allotment to Southern Iron’s shareholders of a total of
24,222,222 WPG shares. These WPG shares are to be allocated to Southern Iron’s shareholders in
proportion to their shareholding in Southern Iron.
Completion of Southern Iron’s tenement acquisitions is contingent on Ministerial approval and a
small number of other conditions. WPG’s acquisition of Southern Iron will not be completed until
Southern Iron first completes its acquisitions of the tenements.
WPG’s independent directors, Bob Richardson and Gary Jones, have engaged HLB Mann Judd
Corporate (NSW) Pty Ltd to prepare an independent expert’s report on the acquisition of
Southern Iron, and to opine on the fairness and reasonableness of the transaction on independent
shareholders.
Shareholder Meeting
A general meeting of WPG’s members will be convened for a date to be fixed in October 2006. A
notice of meeting, explanatory memorandum, independent expert’s report and an independent
technical specialist’s report will be sent to WPG’s shareholders prior to this meeting.
The business of the general meeting will be set out in the notice of meeting but will include the
following:
• Proposal to acquire Southern Iron;
• Proposal to change the Company’s name to Western Plains Resources Ltd;
• Proposal to restructure WPG’s board so that it is more in tune with the requirements of a
company proceeding to project development; and
• Proposal to raise up to $5 million by an underwritten share purchase plan ($2 million) and
a placement (up to $3 million). The pricing of the capital raising will be fixed over the
next few days but will be higher than the volume weighted average price at which the
Company’s shares have traded on the ASX in the 30 days prior to the date of this
announcement.
Western Plains Gold Ltd Page 6
Iron Ore Acquisition 24 August 2006
Gold and Copper Exploration in NSW and South Australia
WPG will continue to explore for gold and copper in NSW and South Australia. A substantial
programme of further drilling at the Mulyungarie, Euriowie, Trundle, Cargelligo and Peak Hill
East projects is scheduled for the December 2006 quarter.
WPG’s directors believe that the acquisition of Southern Iron will diversify and reduce the
Company’s high risk profile as an explorer while at the same time providing shareholders with
continuing and on-going exposure to the upside potential of a significant exploration success in
WPG’s high quality gold and copper exploration tenement portfolio.
Yours faithfully
Bob Richardson Gary J Jones
Independent Director Independent Director
Competent Person
The review of exploration activities and results contained in this report is based on information compiled by Mr
Gary Jones, a Member of the Australasian Institute of Mining and Metallurgy. He is Technical Director of the
Company and a full time employee of Geonz Associates Limited. He has sufficient experience which is relevant to the
style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Gary Jones has consented to the
inclusion in this report of the matters based on his information in the form and context in which it appears.
Further Information
For further information please contact WPG’s independent directors, Bob Richardson on 0414 592 080 or Gary
Jones on +647 854 0453, or Bob Duffin, Chairman of WPG and director of Southern Iron, on (02) 9247 3232 or
0412 234 684.