Hatches Creek Joint
– Poly Metallic Project
GWR is a well-funded resource house, developing a portfolio of mineral commodity projects that includes projects held in its own right, in joint venture and indirectly through investment in other listed entities.
The Group, through its wholly-owned subsidiary, NT Tungsten Pty Ltd (“NTT”), holds an 80% interest in the Hatches Creek Tungsten Project (“Project”) in the Northern Territory. Tungsten Mining NL holds the remaining 20%.
This project is located 375 km north east of Alice Springs in the Northern Territory of Australia (Figure 12). The Hatches Creek Project consists of two granted exploration licences covering 31.4 km2 (EL22912 and EL23462), which cover the entire historic Hatches Creek tungsten mining centre, which was a large, historical, high-grade tungsten mining centre.
Mining was undertaken here between 1915 and 1957, and the previous recorded production is approximately 2,840 tonnes of 65% WO3.
Bismuth concentrate and copper ore have also been produced at Hatches Creek. On 22 May 2019, the Group reported high-grade tungsten, copper and molybdenum results achieved from 13 RC drill holes for 1,524m completed at the Hit or Miss Prospect.
All holes yielded multiple significant results which included:
• HCRC0053 – 6m at 0.42% WO3 from 35m, including 1m at 1.88% WO3 from 40m;
• HCRC0053 – 5m at 0.44% WO3 and 1.00% Cu from 115m, including 1m at 0.72% WO3 and 3.06% Cu from 115m;
• HCRC0054 – 3m at 0.82% WO3, from 100m, including 1m at 1.93% WO3 from 100m.
The RC drilling program was reported as being successful with all holes yielding multiple significant tungsten intercepts, anomalous and significant Cu and Mo mineralisation has also been intersected in some areas, demonstrating the polymetallic style of the mineralisation.
Further details on the results of recent and past drilling programs, Mineral Resource Estimate for surface dumps and the Exploration Target Estimate for the Hatches Creek Project are set out in the Group’s ASX announcements dated 17 July 2018 and 22 May 2019.
On 3 June 2019, the Company announced that it had executed an agreement with Tungsten Mining NL to farm-in to the Hatches Creek Project.
Pursuant to the terms of the Farm-in Agreement, summarised in the announcement dated 3 June 2019, TGN has acquired an initial 20% interest in the Project by reimbursing the Group for past exploration expenditure in the amount of $1.72m.
TGN can increase its interest to 51% by the expenditure of $3,000,000 on exploration, development and mining activities within 5 years of the commencement date. Should a decision to mine be made by TGN whilst in the sole fund stage, it has an option to acquire the Group’s remaining interest for $6.96m (indexed for CPI).
The Farm-in Agreement provides for TGN to direct and manage exploration and development activities at Hatches Creek where past drilling by the Group confirmed multiple high-grade polymetallic tungsten prospects and demonstrated potential for a large high-grade polymetallic tungsten deposit (refer GWR announcements dated 17 July 2018 and 22 May 2019).
The Project is located 375 km north east of Alice Springs in the Northern Territory of Australia (Figure 1).
(Figure 1: Hatches Creek Project Location)