GWR Group says it has reached
agreement on key terms for a works contract with the Pilbara Resource
Group Pty Ltd (PRG) to undertake the development of Stage 1 of the C4
iron deposit, part of the Wiluna West iron ore project, in Western
Australia.
As part of this agreement, PRG
will carry out agreed works for development, mining and transport of
Stage 1 of the C4 deposit, including construction of the haul road, open
pit and other required facilities and infrastructure, surveying, mining,
crushing, screening and transport to port based on a schedule of rates
to be agreed. PRG will be entitled to a 30% share of the profit from
Stage 1 of the C4 iron deposit.
GWR, meanwhile, will undertake
mine design, planning and optimisation for Stage 1 of the C4 iron
deposit.
GWR Chairman, Gary Lyons, said
the execution of a term sheet for development of the deposit was very
significant for GWR shareholders and, together with the recently
announced mining approvals, represents a major milestone for the
company, “paving the way for the commencement of commercial iron ore
production at the Wiluna West iron ore project”.
He added: “The Wiluna West iron
ore project, an exceptional direct shipping ore (DSO) iron ore
development project, will produce a high grade, low impurity iron ore.”
Scott Dryland, Managing Director
of the PRG, said: “This project has added to a record year for PRG. Our
business has gone from strength to strength and we are extremely happy
to have the opportunity to deliver this project in partnership with
GWR.”
The C4 iron deposit is 1.4 km
long and contains a combined DSO hematite, JORC 2004 mineral resource
estimate of 21.6 Mt at 60.7% Fe, comprising 18.5 Mt at 61.2% Fe
indicated and 3.1 Mt at 58% Fe inferred. It has widths of DSO hematite
mineralisation of up to 120 m with close spaced RC drilling having
previously been undertaken on a 25 m by 10 m spacing over a strike
length of 200 m, according to GWR.
The C4 Stage 1 project targets a
500 m strike length of outcropping high-grade DSO hematite
mineralisation within the larger C4 deposit, with GWR having undertaken
internal mine designs and scheduling.
GWR says it has been engaging
with the Port of Geraldton and current users for port and shed access
and continues to investigate other opportunities. Discussions are
ongoing and well advanced with a nearby established mine in the Wiluna
area for access to site services such as village, workshops and water,
it added.
In line with the term sheet, GWR
and PRG will negotiate a formal contract documentation including a works
contract as soon as possible.
Source: im-mining |