WPG Resources hits further high-grade gold underground at Challenger Deeps
Assay results have been returned from drilling of the M2 lode 45 metres below the current production level.
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Preparing a stope at the Challenger Deeps mine in South Australia WPG Resources Ltd (ASX:WPG) has received high-grade gold hits from phase II drilling at the Challenger Deeps project in South Australia.
Assay results have been returned from the third fan of drill holes testing the M2 lode at the 70mRL level, which is two levels or 45 metres below the current production level.
Intersections observed on the third fan are similar to the results received on the top two fans for the phase II program. READ: WPG Resources is an emerging South Australian gold producer
A zone of high-grade gold mineralisation has now been intersected on the 115, 95 and 70mRLs.
This indicates grade continuity down plunge on the M2 lode over these three levels and mineralisation is open at depth.
Shares were up 16% intra-day to 2.9 cents. Key gold intersections
Best intersections from the latest drilling are:
0.74 metres at 17.11 g/t gold from 23 metres downhole;
0.67 metres at 7/36 g/t from 25.4 metres;
1.41 metres at 5.23 g/t from 125.67 metres including 0.33 metres at 9.93 g/t;
0.45 metres at 54.54 g/t from 147 metres; and
0.16 metres at 13.99 g/t from 100 metres, 0.25 metres at 108.88 g/t from 150 metres and 0.29 metres at 29.76 g/t from 167.2 metres.
This fan of drill holes passes into the Challenger Deeps mining lease, which was granted to allow continued mining of the Challenger Deeps lodes down plunge. READ: WPG Resources reaches Challenger Deeps, achieving a major milestone
WPG has recently started mining on the 115mRL level.
http://www.*.com.au/upload/CKEditor/untitled%20folder/untitled%20folder/WPG%20South%20Australia%20Projects.JPG WPG Resources' projects are in South Australia.
The next drilling program will begin later this month and will be used for grade control infill drilling of the M1, Aminus and Challenger West lodes between the 115 and 65mRLs.
WPG’s focus is developing and accessing the new Challenger Deeps area of the Challenger underground mine.
The company reached the never before mined area in February 2018 with initial production focused on the M2 structures to be followed by the M1 lodes as development progresses. Guidance of 60,000 ounces
Guidance for the 2018 financial year from the combined Challenger and Tarcoola gold mining operations is 60,000 ounces.
The Challenger processing facility is fed ore from the Challenger underground mine and the Tarcoola open-pit gold mine, which is 165 kilometres by road from the mill.
WPG also owns the Tunkillia project and other South Australian exploration projects.
WPG Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
