GWR Group Limited (ASX:GWR) reports that another Key Production Milestone has been satisfied in the development of the C4 High Grade Iron Ore Project in Western Australia with the grant of access to key local infrastructure.
The company’s alliance partner Pilbara Resource Group Pty Ltd (PRG) has secured access to the well-established Rosslyn Hill Mining Camp, which will be pivotal in the development and production of its high-grade C4 Iron ore project.
The Rosslyn Hill Mining Camp is located ~22km north of the C4 deposit and lies just off the T-intersection at the end of the Haulage Road currently being constructed (nearing completion) and the Goldfields Highway.
GWR Chairman, Gary Lyons, said formal documentation setting out agreed terms with mining contractor (PRG) is nearing completion.
PRG will be required to fund its own capital requirements for the purpose of performing under the PRG Agreement leaving GWR responsible for minimal upfront costs and able to retain a 70% share of the project profit and retain the rights for ore sales, strategy and timing.
PRG willcarry 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 an exceptional, DSO iron ore development project, which will produce a high grade, low impurity iron ore.
Mr Lyons said GWR has engaged a consultant to assist with the establishment of offtake agreements for sale of product and is advancing discussions with the Mid West Ports Authority and current users for port and shed access.
Our contractors and workers will have full access to the accommodation village, workshops water and other facilities at the Rosslyn Hill mining camp which is situated at the end of our Haulage Road,” Mr Lyons said,
“Securing access to the mining camp is a key milestone in the development and production process of the C4 deposit.
“We will continue to update the market as we achieve Key Project Milestones ahead of production for the High-grade Iron Ore C4 DSO hematite project, including Feasibility Studies, final mine planning and scheduling, Port and Shed access, offtake agreements, commencement of mining and first sales/shipment of ore.”
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.