Mineral resources company WPG will proceed to sign a formal purchase of Mungana Goldmines’ Tunkillia and Tarcoola gold projects in the Gawler Craton in South Australia.
The Sydney-based company completed due diligence on Tunkillia and Tarcoola, a six-week process, before entering into a term sheet with Mungana.
Feasibility and scoping studies carried out by Tunkillia Gold have showed a total resource estimate of 26.3 million tonnes, or 878,000 ounces, of gold and 2.5 million ounces of silver.
WPG Executive Chairman Bob Duffin is moving quickly to complete the acquisition of the two gold projects.
“They are already quite advanced and will fit the high benchmarks we set for any acquisition,” he said.
“Over $20 million has been spent by other parties in exploration and permitting activities to this stage”.
Mr Duffin also said that a Mining Lease Application was lodged for the Tunkillia project by Mungana to continue the process of moving the projects forward from the exploration stage to potential mining projects.
The projects are located 450 kilometres north-west of Port Augusta in South Australia.
