WPG Resources Ltd (ASX:WPG) and its joint venture partner Tyranna Resources Ltd (ASX:TYX) have increased the JORC resource at the Jumbuck Gold Project in South Australia.
Importantly, Jumbuck is within trucking distance of WPG’s 100% owned Challenger gold operations.
READ: Tyranna Resources increases Jumbuck gold resource to 319,000 ounces
The gold resource at Jumbuck was increased 46% or 100,000 ounces to a total of 319,000 ounces at an average grade of 1.1 g/t gold.
The resource is spread across six deposits – Golf Bore, Campfire Bore, Greenewood, Monsoon, Typhoon and Mainwood.
Tyranna’s managing director Bruno Seneque said: “This new resource strengthens our understanding of the deposits and it is to be noted that these are shallow ounces, sitting only 100 metres from surface.
“We will now start to plan first pass scoping studies to evaluate the potential to advance toward feasibility studies.
“Of course this will entail discussions with our joint venture partner – WPG Resources, who operate the Challenger Gold Operations and have been supportive of Tyranna’s exploration efforts.”
READ: WPG Resources on target to increase gold production in FY18
WPG recovered 14,124 ounces of gold during the March quarter from its Challenger underground and Tarcoola open pit mining operations in South Australia.
Tarcoola is located 165 kilometres by road from the Challenger processing mill to which the ore is trucked.
The company has guided the market to June year end annual production from Challenger and Tarcoola of between 58,000 and 60,000 ounces of gold.
March quarter all-in sustaining cash costs (AISC) were $1,577 per ounce and are expected to fall materially in the final June quarter.