Name of the Project
Tarcoola gold project.

Location
The Tarcoola gold project is located in central South Australia, 165 km by road from 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 project has shown substantially enhanced economic outcomes over the original heap-leach option announced to the market in September 2015.

It has an ore reserve of 710 000 t at 3.1 g/t containing 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 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 producing at a 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 study estimates an 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 through using 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 Resources has trucked its first ore from its Tarcoola gold mine to the Challenger project, for treatment.

The truck haulage was initially planned for mid-December, but was delayed by nearly a month, owing to the need for additional approvals unrelated to the mining operation and the impact of unseasonal heavy rains earlier this month.

“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 grade and ounces produced, with ore from Tarcoola being processed along with Challenger underground ore currently being mined,” WPG executive chairperson Bob Duffin has said.

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

The initial haulage rate is 500 t/d, which can be increased during this year.

Tarcoola is expected to have a mine life of two-and-a-half years, and a treatment period of three-and-a-half years.
 
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.