WPG Resources has started mining at Tarcoola gold project in South Australia.

Mining work began at the site within two weeks of the decision to mine.

WPG Resources executive chairman Bob Duffin said: “In anticipation of the approval of the project’s programme for environment protection and rehabilitation (PEPR), payment of $72,000 into a significant environmental benefit vegetation clearance offset account and lodgment and registration of the mine closure rehabilitation bond of $1.76m and the decision to mine, all contracts have been awarded, equipment necessary for works to commence has been mobilised to Tarcoola and the Tarcoola Hospital has been refurbished for accommodation purposes, and ancillary infrastructure finalised.

"We have been able to deploy staff and contractors to site, and reach this next important milestone."

“In short order, we have been able to deploy staff and contractors to site, and reach this next important milestone.

“Our goal of transporting the first ore to Challenger in mid-December for treatment is on track.”

It is expected that the gold project will carry a mine life of around two years with a treatment period of approximately three and half years.

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Tarcoola is the newest mine to be discovered in South Australia. The company expects to become a multi-tier gold producer when this mine starts production along with its Challenger gold mine.

According to a recent feasibility study, WPG Resources can produce 20,000oz of gold per annum from Tarcoola mine by spending $4m as capital expenditure.