WPG Resources announced that it will produce about 3,000 ounces of gold from its Challenger mine in December, which is significantly less than what the company was hoping for.
WPG – which produced approximately 5,100 ounces of gold in November – said the total production for the quarter is expected to be approximately 12,400 ounces, marginally more than the first quarter’s production of 12,138.
“While underground ore haulage in the year to date at Challenger has been a little in excess of budget, mine development is still well behind schedule,” the company told the ASX.
“The disappointing production projection for December is largely attributable to the impact of this which has resulted in only lower grade stoping areas being available for production during the month.”
In an order to improve availability of the two existing jumbo development drill rigs at Challenger, WPG’s mining contractor Pybar Mining Services has agreed to employ two more fitters at the mine.
According to WPG, Pybar will also deploy a new and third jumbo to Challenger in early January to catch up on the development shortfall.
WPG, which is hoping to produce about 1,000 ounces of gold from its new Tarcoola mine this month, is not expecting to be in profit for the current half year.