WILUNA WEST IRON ORE

The Wiluna West Iron Ore Project, is an exceptional, DSO iron ore development project, which will produce a high grade, low impurity iron ore as metallurgical tests have demonstrated.

The Wiluna West project has a 2004 JORC Code compliant Resource totalling 130.3 million tonnes at an average iron grade of 60% Fe, including 69.2M tonnes of Probable Reserves at 60.3% Fe (refer Annual Resources and Reserves Statement contained in the 2016 Annual Report and as set out below). This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Mining approvals are in place for large scale mining operations (up to 7Mtpa) over an initial mine life of 10 years. GWR has no immediate plans to commence development of the WWIOP, however these approvals position the Company to derive maximum value from the project through the commodity price cycle.  No activities other than care and maintenance are envisaged, with expenditure exemptions under the Mining Act currently in place.  

JWD Mining Project

GWR has made substantial progress towards mining operations at Wiluna West and is ready to complete development and move in to production.

In April 2012, the Western Australian Department of Mines and Petroleum approved the mining proposal for the John William Doutch (“JWD”) high grade deposit. This Mining Approval concerns one million tonnes per annum for three years. The JWD deposit is within the Wiluna West Iron Ore Project tenements and contains a DSO hematite resource of 10.7Mt at a high grade 63.7% Fe, using a cut-off of 55% Fe.  Refer to ASX Announcement.

The JWD metallurgical characterisation program was carried out on lump ores at the CSIRO laboratories in Brisbane, whilst sinter pot test work on JWD fines was conducted at CISRI’s Beijing research facilities.  The positive metallurgical test-work results indicate that GWR’s iron ore lump and fines products will be viewed by the steel mills as value adding and comparable with premium lump ores produced in the Pilbara region of Western Australia. 

In view of the substantial decline in iron ore prices since March 2014, GWR has responded by placing the project on care and maintenance and reducing project related costs to a minimum. 

JORC Resources and Reserves Statements

Resources

Wiluna West Iron Ore Project - Mineral Resource Reported above a 50% cut-off

Classification Tonnes (Mt) Fe% SiO2% Al2O3% P% LOI%
Measured 3.7 59.6 7.8 2.5 0.09 4.0
Indicated 77.2 60.3 7.4 2.4 0.05 3.6
Inferred  49.5  59.6  7.3  2.5  0.05  3.9 
Total  130.3  60.0  7.4 2.4 0.06 3.6


Refer to ASX Announcement for more details.


Reserves

Wiluna West Iron Ore Project - Reserve Estimate Reported Above a 50% cut-off

Classification Tonnes (Mt) Fe% SiO2% Al2O3% P% LOI%
Proven 2.9 59.7 7.6 2.6 0.07 4.0
Probable 66.4 60.3 7.2 2.5 0.05  3.6 
Total  69.2 60.3 7.2 2.5 0.05  3.6 


Refer to ASX Announcement for more details.