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 commenced development of the WWIOP. At its C4 deposit, mining and transportation of ore has begun with stockpiling occurring at Geraldton Port and first ship expected to export early in 2021.

GWR Group is proud to highlight its rapid and efficient, low cost, development of its C4 deposit at Wiluna West.

It is envidaed that Stage 1 of C4 will lead to further exploitation of Wiluna West.

In conjuction with its alliance partner Pilbara resource Group (PRG) Stage 1 of the C4 mining operations is under way.

The first 1 million tonnes of C4’s Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe with assessment and modelling currently underway to increase production tonnage on Stage 1. Under the Joint Venture with PRG, GWR is required to provide minimal capex and opex, will retain 70% share in the project profit as well as retaining the rights for ore sales, strategy and timing. The current review being undertaken by GWR on its entire Wiluna West Iron Ore project is progressing very well with regards to increasing the production tonnage at Stage 1 (C4 Iron deposit) and optimising the remaining ~20 million tonnes1 to be optimised for Stage 2 whilst discussions with interested parties have commenced.

Other than at C4, GWR currently has mining approvals in place for the C3 and Bowerbird deposits which permit the mining of a combined 7 million tonnes per annum. The emphasis being placed on this review is to focus on high grade portions of deposits, which have low strip ratios and can be bought to production in the most effective manner in order to maximise the benefits to shareholders from the current buoyant Iron Ore prices.

GWR has made substantial progress towards mining operations at its flagship Wiluna West Iron ore project. GWR is further monetising its assets by appointing companies to exploit its 100% owned Wiluna West high grade Iron Ore Project.

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. 

Fe Limited (FEL ASX) has entered into a binding JV Agreement to acquire a 51% interest in the Mining Rights Agreement held by Gold Valley Iron Ore over the Wiluna West JWD deposit wholly owned by GWR Group Limited.

FEL will operate the Joint Venture with its 51% interest and look to commence operations as soon as practically possible to meet the obligations under the Mining Rights Agreement that a minimum of 300,000 tonnes is mined and trucked with 21 months from the PMP approval date.

FEL advised the ASX it has “lodged its Works Approval application for the JWD Iron Ore Project with the WA Department of Water and Environmental Regulation (“DWER”). The Works Approval is the only outstanding primary environmental approval required to facilitate commencement of production at JWD.”

FEL also advised they expect to receive this approval in the Q/E March 2021 and in the meantime their team will continue to work on port, transport and offtake agreements. Once approval is granted FEL believes “with iron ore demand extremely strong at present having a mature project like JWD that has the ability to supply high grade iron ore to the market in the near term has significant value to our shareholders.”

A $125,000 take or pay installment was paid to GWR in late December 2020 from the JWD Mining Agreement.

Additionally, a further $4.25 million is payable to GWR on the exercise of the Stage 2 Option and for all tonnes mined and trucked greater than 3 Million a flat Rate Royalty of $3.50/per tonne is payable. In addition to these stage payments, a production royalty is payable during both stages, which is linked to the iron ore price in the range of $1 to $2 per tonne.

Resources

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

ClassificationTonnes (Mt)Fe%SiO2%Al2O3%P%LOI%
Measured3.759.67.82.50.094.0
Indicated77.260.37.42.40.053.6
Inferred 49.5 59.6 7.3 2.5 0.05 3.9 
Total 130.3 60.0 7.42.40.063.6


Refer to ASX Announcement for more details.


Reserves

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

ClassificationTonnes (Mt)Fe%SiO2%Al2O3%P%LOI%
Proven2.959.77.62.60.074.0
Probable66.460.37.22.50.05 3.6 
Total 69.260.37.22.50.05 3.6 

Wiluna West Iron Ore Project – Mineral Resources by Deposit

ClassificationDepositCalcCut OffTonnes (Mt)Fe %SIO2 %AI2O3LOI %P %
MeasuredJWDOptiro 2013556.4064.072.631.513.070.034
BOWERBIRD CENTRALOptiro 2011501.2062.276.252.741.600.038
C3Optiro 2011502.5058.388.462.395.140.107
TOTAL10.1062.454.501.873.410.053
IndicatedBOWERBIRD CENTRALOptiro 2011505.9059.867.763.442.650.054
BOWERBIRD SOUTHOptiro 20115013.0060.507.182.912.890.048
JWDOptiro 2013550.9063.612.761.333.570.030
JINDALEE JOYNERSOptiro 2010503.3063.614.272.051.830.036
C3Optiro 20115030.4058.478.352.395.220.076
C4Optiro 20105018.5361.178.081.972.220.034
TOTAL72.0359.947.762.433.640.056
InferredBOWERBIRD NTH NTHGWR 2009502.5860.845.192.193.640.050
BOWERBIRD NTHSNOWDEN 2008503.9059.706.503.802.600.040
BOWERBIRD CENTRALOptiro 2011500.8058.159.483.832.860.045
BOWERBIRD SOUTHOptiro 2011505.2060.038.332.422.360.038
JWDOptiro 2013553.4063.133.231.583.380.029
JINDALEE JOYNERSOptiro 2010503.9062.474.812.122.160.057
C1SNOWDEN 2007504.2058.507.203.305.200.088
C2GWR 2009506.7658.526.892.866.250.036
C3Optiro 2011504.4056.708.973.256.130.069
C4Optiro 2010503.0858.0010.302.853.600.035
C5SNOWDEN 2007504.4059.108.902.103.800.118
CRSNOWDEN 2007504.0060.609.301.401.700.030
SOUTH 2SNOWDEN 2008502.2056.209.102.037.800.077
TOTAL48.8259.457.452.574.030.055
Deposit TotalsBOWERBIRD NTH NTHGWR 2009502.5860.845.192.193.640.050
BOWERBIRD NTHSNOWDEN 2008503.9059.706.503.802.600.040
BOWERBIRD CENTRALOptiro 2011508.0060.067.703.382.510.051
BOWERBIRD SOUTHOptiro 20115018.2060.377.512.772.740.045
JWDOptiro 20135510.7063.742.831.523.210.032
JINDALEE JOYNERSOptiro 2010507.2062.994.572.092.010.047
C1SNOWDEN 2007504.2058.507.203.305.200.088
C2GWR 2009506.7658.526.892.866.250.036
C3Optiro 20115037.3058.268.432.495.320.077
C4Optiro 20105021.6260.728.392.092.420.034
C5SNOWDEN 2007504.4059.108.902.103.800.118
CRSNOWDEN 2007504.0060.609.301.401.700.030
SOUTH 2SNOWDEN 2008502.2056.209.102.037.800.077
GRAND TOTAL131.1060.007.402.403.800.060


Refer to ASX Announcement for more details.

Pictures: C4 Minesite, ROM stockpile and crushed ore stockpile as of 15th December 2020