Name of the Project
Tarcoola gold project.

Location
The Tarcoola gold project is located in central South Australia, 165 km by road to the Challenger mine and about 190 km south of Coober Pedy and 600 km north-west of Adelaide.

Client
WPG Resources.

Project Description
An updated feasibility study on the Tarcoola gold project has shown substantially enhanced economic outcomes over the original heap-leach option announced to the market in September 2015.

The project has an ore reserve of 710 000 t at 3.1 g/t at 71 000 oz gold.

The project remains a small to medium-sized openpit gold mine, but has a much smaller footprint now, as there will be no leach pads or gold recovery circuit on site.

The ore will instead be hauled for treatment to Challenger, 165 km away, for treatment, supported by substantially reduced on-site and off-site services and infrastructure.

Treatment through the Challenger carbon-in-pulp plant results in substantially increased gold recovery, now estimated to be 95%, up from the 81% for the original heap-leach option.

The feasibility study envisages conventional opencut mining, primarily from the Perseverance deposit, with a smaller pit in the Last Resource area at a production rate of about 350 000 t/y.

It represents a sound case for the development of a project with a mine life of at least three years.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The updated feasibility estimates a ungeared, pretax net present value, at a 7.5% discount, of $39.6-million and a return on investment of more than 350%.

Value
The cost of the project is estimated at $3.99-million.

Capital costs have been reduced by the use of existing buildings and infrastructure in the Tarcoola township, together with some additional leased infrastructure.

Duration
Mine construction and production are expected to start soon after the programme for environmental protection and rehabilitation has been approved, with first gold to be produced before year-end.

Latest Developments
WPG has secured the last material regulatory approval for its Tarcoola project, paving the way for a decision to mine.

The South Australian Department of State Development has approved the programme for environment protection and rehabilitation for the Tarcoola gold project, on condition of a mine closure rehabilitation bond of A$1.76-million and the payment of an estimated A$72 000 into a significant environmental benefit vegetation clearance offset account.

WPG has said that, as soon as the conditions have been met, a decision to mine will be taken and the company will progress with project development.

In anticipation of this, all contracts for the project have been awarded and most of the equipment necessary for work to start have been mobilised to site.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
WPG Resources, tel +61 2 9251 1044, fax +61 2 9247 3434 or email info@wpgresources.com.au.