A new mining lease application (MLA) has been lodged for the Tunkillia gold project in South Australia.
WPG Resources is in the process of acquiring the project from current owner, Mungana Goldmines, which has lodged the MLA with the state government.
WPG executive chairman Bob Duffin said this move has given further assurance to the WPG team of the Tunkillia project’s potential, a deposit which is about 30 kilometres the established Tarcoola Project.
“The MLA includes all required baseline environmental, social and heritage studies which have been carried out by a highly qualified team of well-recognised independent consultants, some of which worked on the feasibility study for our Peculiar Knob iron ore project a few years ago,” he said.
WPG is doing due diligence on Tunkillia as well as the Tarcoola gold project, which is near Ceduna in South Australia.
“As I said previously they fit neatly in our sweet spot… existing resources with additional exploration potential, where value can be added by our management team through further exploration aimed at extending the resource base, obtaining all necessary approvals for project development, the completion of bankable feasibility studies, and eventually the arranging of project development capital,” Duffin said.
Duffin said he expects the acquisition from Mungana to be complete by the end of May.
“Our strategy is twofold: We’re looking at the potential to increase the resource tonnage at about the same grade… and we’ll go looking for higher grade plums in the pudding with a view to identifying some higher grades patches that can be developed earlier.
Duffin said a new drilling program would begin at the Tunkillia project in the third quarter this year.
“We think it has the potential to support the integrated project financially in the earlier stages of development,” he said.
“Tunkillia has been known for a while, and it’s been a frustrating project for a number of companies, but we think we’ve got the wherewithall to crack the Tunkillia nut.”