WPG Resources is progressing development at its Challenger gold mine in South Australia, selecting Byrnecut as the contractor for the operations.
The company completed rehabilitation works at the bottom of the site’s Jumbuck Decline, with development towards the next production level at Challenger recommencing last week.
This is the first step in the development of Challenger Deeps as a new production area, with the next phase of drilling activities set to begin in August.
First stoping is expected for later this year.
WPG also issued a Letter of Intent to Byrnecut for a new mining contract at Challenger.
Byrnecut, which was the contractor at Challenger before WPG’s acquisition, has begun mobilisation activities and will assume responsibility for all underground activity at Challenger from August 8 2017.
WPG executive chairman Bob Duffin highlighted that the company’s key objectives included conducting underground development at Challenger to allow ongoing mining operations.
“We welcome Byrnecut back to our operation and look forward to delivering on our mining plan,” he said.
“We have accumulated ROM stockpiles at both Challenger and Tarcoola to ensure minimal impact on milling operations during the changeover period.”
Last month, WPG raised $7.2 million for expansion of the mill at the Challenger operation with additional plans to use the funds for mine development, exploration and general working capital purposes.