Developing High-Grade DSO Iron Ore Project
GWR Group Limited (ASX:GWR) has commenced development activities for its 100% owned flagship C4 Iron Ore deposit in Wiluna, Western Australia.
Chairman, Gary Lyons, said C4 is an exceptional DSO project, which will produce a high grade, low impurity iron ore.
“GWR is now one step closer to becoming the next Iron Ore producer on the ASXwith start of construction of the Northern Haulage road running from the C4 deposit earmarking the official commencement of development operations,” Mr Lyons said.
GWR has engaged specialist contractors in mining and resource development, Pilbara Resource Group Pty Ltd (PRG) to carry out agreed works for development, mining and transport of Stage 1 of the C4 Iron Deposit. Stage 1 covers just one million tonnes of C4’s Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe.
Formal contract documentation between the two groups and completion of a project budget is nearing completion and expected to be completed shortly, however it is important for shareholders to understand GWR is not required to provide any upfront capex or opex and will retain a 70% share of the project profit and GWR will retain the rights for ore sales, strategy and timing.
Meanwhile, GWR has also successfully completed 1,185 metres of an infill drilling programme, designed as pre-production grade control over a strike length of 325 metres within the proposed Stage 1 open pit of the C4 deposit to be mined.
The programme consisted of 43 Infill RC drill holes which means the Stage 1 pit is now drilled- out on an approximate 25m by 10m spacing. Drilling was also undertaken immediately south of the Stage 1 pit.
All samples have been submitted to the Nagrom Laboratory in Perth.
The C4 deposit is 1.4 km long and contains a combined DSO hematite, JORC 2004 Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe, comprising 18.5 million tonnes at 61.2% Fe Indicated and 3.1 million tonnes at 58.0% Fe Inferred (refer to ASX announcement 8th July 2011).
Only minor permitting is currently required prior to commencing mining. The Works Approval (required for crushing and screening operations) is currently being assessed by the Department of Water and Environmental Regulation and currently is in the public assessment stage and if no objections are raised this will be approved by the end of October.
“The Wiluna West Iron Ore Project is an exceptional, DSO iron ore development project, which will produce a high grade, low impurity iron ore and the C4 Iron Ore deposit is the second revenue stream GWR expects to derive a benefit from and add potential significant value to shareholders, alongside the JWD deposit,” Mr Lyons said.
“We look forward to updating shareholders as we achieve Key Performance Milestones which will enable GWR to reach our goal of becoming the next ASX Iron Ore producer.
“GWR is well positioned to exploit the commodity cycle and has engaged a consultant to assist with the establishment of offtake agreements for sale of product.”
