WPG RESOURCES LIMITED - ASX: WPG

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Description

WPG Resources is an Australian ASX listed mineral resources company with advanced iron ore and coal exploration projects located in South Australia. The ASX code is WPG.

WPG's iron ore deposits comprise direct shipping ore (DSO) deposits, magnetite deposits and a new style of mineralisation, beneficiable feed ore (BFO) deposits.

The Company’s iron ore deposits lie in the Peculiar Knob and Hawks Nest tenements in the Gawler Craton south of Coober Pedy. The Company has completed Bankable Feasibility Studies for the development of both the Peculiar Knob and Buzzard DSO deposits. Initial project development will be directed towards the Peculiar Knob DSO haematite deposit with a resource of 19.2 million tonnes @ 64.0% Fe that the Company intends to bring into production in 2011 at a rate of 3.3 Mt per year for an approximate five year mine life.

The 398 sq km Hawks Nest tenement contains the Buzzard and Tui DSO haematite deposits with a combined resource of 18.4 million tonnes @ 61.6% Fe and also over a half a billion tonnes of magnetite as banded iron formation, with significant exploration upside. The Company has completed a scoping study for the development of its magnetite assets, and the results of the scoping study are very promising.

WPG’s BFO deposits also occurs in the Hawks Nest tenement and have a resource of 102.5 million tonnes @ 37.4% Fe. The Company is conducting metallurgical testwork on this material with a view to upgrading it to DSO specifications.

WPG will be undertaking further exploration at Hawks Nest and is assessing a range of development alternatives.

The Company's coal projects are located in the Coober Pedy region and in the southern part of SA at Lochiel and Pidinga. WPG recently completed the purchase of the Penrhyn coal deposit which lies approximately 20 km from the Company's planned iron ore crusher and rail loop loader facility at Wirrida Siding. The exploration target at Penrhyn is estimated by WPG to be 200 - 300 million tonnes of coal.

Moving forward, the Company will leverage off its resource and operational base in South Australia to investigate other iron ore and coal projects, with the objective of becoming a significant, profitable South Australian producer.

Mine For

iron ore, coal

Location of operation(s)

South Australia

Address

Level 9 Kyle House, 27-31 Macquarie Place
SYDNEY, NSW, AUSTRALIA

Phone

(02) 9251 1044

Email

Website

http://www.westernplainresources.com.au

Last Updated

19/01/2011