WPG Resources : 2017-01-23 Tarcoola ore trucked to Challenger

ASX and Media Release Commencement of haulage of Tarcoola ore to Challenger

WPG Resources Ltd (ASX: WPG) advises that Tarcoola ore is now being trucked to Challenger for treatment through the Challenger CIP plant.

Photo: trucking of ore from Tarcoola to Challenger

This follows planned upgrades to the haul road and completion of the traffic management plan in cooperation with the mining and ore haulage contractor.

23 January 2017

ASX Announcement - 23 January 2017

Some delays to the commencement of haulage were made to reflect the need for additional approvals unrelated to the mining operation itself and the impact of unseasonal heavy rains earlier this month.

In preparation for the receival of ore from Tarcoola trials recently commenced of running the Challenger treatment plant at higher throughput rates. Current indications are that its capacity can be increased from the current 600,000 tpa to 700,000 tpa with no material loss of gold recovery without further capital expenditure. The potential to increase the capacity to 800,000 tpa with some limited additional expenditure is also being examined.

Executive Chairman Bob Duffin said "we are pleased with the timely and efficient manner with which Tarcoola has progressed since the Board took the Decision to Mine in November last year.

"Delivery of Tarcoola ore to Challenger comes at exactly the right time, replacing the depleted low grade surface stockpile material. We anticipate an increase in both grade and ounces produced with ore from Tarcoola being processed along with the Challenger underground ore currently being mined.

"We are now starting to see the synergies between Challenger and Tarcoola which we identified early on."

The initial haulage rate is 500 tonnes per day, which may be increased during this year.

Tarcoola is South Australia's newest mine, and its development, together with the Challenger mine, will transform WPG to a successful mid-tier gold producer.

Further Information

For further information please contact WPG's Executive Chairman, Bob Duffin or CEO Wayne Rossiter on [phone].

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning WPG's planned activities, including but not limited to mining and exploration programs, and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. In addition, summaries of Exploration Results and estimates of Mineral Resources and Ore Reserves could also be forward looking statements. Although WPG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.