Microsoft Word - December 2015 Quarterly Activities Report.doc
ASX and Media Release
Quarterly activities report December quarter 2015
HIGHLIGHTS
Tarcoola gold project (WPG 100%)
Tunkillia gold project (WPG 100%)
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Drilling of high priority targets identified from calcrete sampling program to commence during Q1 2016
Challenger acquisition
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Exclusive option agreement to acquire Challenger exercised
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Joint Venture entered into with DMPL, an associate of PYBAR Mining Services
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Strategic Investment in WPG made by JV partner
Corporate
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All resolutions put to Annual General Meeting passed
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Entitlement Offer successfully completed
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R&D refund received
29 January 2016
ASX Announcement - 29 January 2016
SOUTH AUSTRALIAN GOLD PROJECTS
WPG Resources Ltd (ASX: WPG) holds its key South Australian gold prospects through two wholly-owned subsidiaries - Tarcoola Gold Pty Ltd and Tunkillia Gold Pty Ltd.
The location of the Company's gold projects is shown below.
Location of Tunkillia and Tarcoola Exploration Tenements
TARCOOLA
Mineral Lease
Following the grant to Tarcoola Gold Pty Ltd of Mineral Claim 4376 over 725 hectares for the Tarcoola gold project, the Company finalised and lodged its Mineral Lease Proposal (MLP) for the project with DSD on 8 August 2015. The MLP was formally advertised in accordance with DSD procedure, issued to a range of stakeholders, including relevant government departments and was open for public submissions until 8 October 2015.
Following the end of the quarter, DSD provided the Company with draft terms and conditions of the Mineral Lease and WPG is currently reviewing these conditions. It is anticipated that the Mineral Lease will be granted within the coming weeks.
NTMA
The Tarcoola gold project is located on Crown Reserve land and Native Title is held by the Antakirinja Matu-Yankunytjatjara people represented by the Antakirinja Matu- Yankunytjatjara Aboriginal Corporation (AMYAC). A Native Title Mining Agreement was successfully negotiated with AMYAC and executed by all parties during the quarter and subsequently registered by DSD.
ASX Announcement - 29 January 2016
PEPR
WPG is well advanced with documentation for the Program for Environment Protection and Rehabilitation (PEPR) which will be lodged after the ML is granted. Once these submissions are approved WPG will be in a position to commit to project development at Tarcoola, subject to financing.
WPG will continue to work closely with DSD and other stakeholders throughout the PEPR approval process to facilitate the completion of the approvals process by mid- 2016, with mine construction and production targeted to commence soon thereafter.
Exploration
WPG has 100% of all minerals over an area of 1,183km2 on EL 5355 and is reviewing exploration targets with potential for further discoveries.
TUNKILLIA
Exploration
During the quarter the Company focused on the preparation of an exploration program to increase the size of the Tunkillia deposit.
Follow-up and in-fill calcrete sampling was completed on 8 of the previously identified 14 prospects that were selected for priority exploration from a major review of historical data compiled by previous explorers that generated 33 targets within the Tunkillia exploration tenements, all located within close proximity to the existing Tunkillia 223 deposit.
The results of the sampling received in December 2015, better defined these anomalies and two high priority targets were identified at the Area 51 and Tomahawk Extended prospects. RC drilling of these two targets will commence during the first quarter of 2016. A smaller and lower tenor gold in calcrete anomaly has been outlined at the Hatchet prospect, which may be drilled later.
ASX Announcement - 29 January 2016
Tunkillia Project Regional Calcrete Anomalies & Location of Prospects Sampled During the Follow-up Program
CHALLENGER
Option to Acquire
On 30 October 2015, WPG entered into an exclusive Option Agreement to acquire the Challenger Gold Mine and South Australian exploration assets from Kingsgate Consolidated Limited.
Diversified Minerals Pty Ltd (DMPL), an entity within the PYBAR Group (PYBAR), agreed to enter into a 50/50 joint venture over these assets with WPG as manager. PYBAR is one of Australia's pre-eminent and extremely successful underground mining contractors.
Following a 6 week due diligence period, WPG and DMPL jointly exercised the option and subsequently entered into a 50/50 joint venture with WPG as joint venture manager for the Challenger Gold operation.
Strategic Investment
Following exercise of the option to acquire Challenger, DMPL subscribed for a placement of 25,806,452 fully paid ordinary WPG shares at 3.1 cents per share to raise $800,000.