From the bottom of Page 5 of the annual report:
This Ore Reserve estimate relates to the Challenger gold mine, located in South Australia within ML 6103 and ML 6457.
The reserves are now (June 2017) about half of what they were in 2016
Tonne Grade OZ
99.4k 3.99g 12.7koz 2017
190.3 3.52 21.5 2016
There are tough times ahead for WPG after two loss making quarters.
It seems Challenger has run out of gold.
Gold that can be mined in sufficient grade and quantity to be profitable, that is.
The news release of 26/10/17 describes the results as “Encouraging Gold Assays”.
The problem is with such narrow lodes and average grade; much of it cannot be mined with modern 5m machinery - economically that is.
It is encouraging that there is gold; but so disappointing such narrow veins.
Yes, you can chase down shoots with hand tools while the jumbo remains at the head of the drive.
The view facing the operator is a 5m face (nominal 20sqm - actual 19.6sqm).
The target ore is at widest 1.14, 0.85, .75 and 0.23. (according to the report)
Area of ore to be mined (taking the 0.85m sample is 0.567sqm).
Do the math - this means for every 5.6 tonnes of ore, another 19t of waste rock is mined.
WPG will trade on with a tight purse. Every accounting period has a start and finish day.
It is easy to shuffle accounts and receivables so the numbers add up on audit day - just set the paperwork dates and pay creditors next day.
Finally, I hope Byrnecut finds Lassiter’s.
This “encouraging” report encouraged me to finally sell my last parcel.
All IMHO GLTA.
WPG Price at posting:
1.8¢ Sentiment: Sell Disclosure: Held
