Wiluna West Iron Ore

GWR IS SUCCESSFULLY TRANSITIONING FROM EXPLORER TO ACTIVE MINER. THE COMPANY 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 Wiluna West Iron Ore Project, is an exceptional, DSO iron ore development project, which produces 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 mining at WWIOP. At its C4 deposit, mining and transportation of ore has begun with stockpiling occurring at Geraldton Port and ships have been loading and leaving for over a year now.

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

It is envisaged that development 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 mining C4’s Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe with assessment and modelling currently is underway. 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.

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

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

Wiluna West Iron Ore Project – Mineral Resources by Deposit

Classification	Deposit	Calc	Cut Off	Tonnes (Mt)	Fe %	SIO₂ %	AI₂O₃	LOI %	P %
Measured	JWD	Optiro 2013	55	6.40	64.07	2.63	1.51	3.07	0.034
	BOWERBIRD CENTRAL	Optiro 2011	50	1.20	62.27	6.25	2.74	1.60	0.038
	C3	Optiro 2011	50	2.50	58.38	8.46	2.39	5.14	0.107
	TOTAL			10.10	62.45	4.50	1.87	3.41	0.053
Indicated	BOWERBIRD CENTRAL	Optiro 2011	50	5.90	59.86	7.76	3.44	2.65	0.054
	BOWERBIRD SOUTH	Optiro 2011	50	13.00	60.50	7.18	2.91	2.89	0.048
	JWD	Optiro 2013	55	0.90	63.61	2.76	1.33	3.57	0.030
	JINDALEE JOYNERS	Optiro 2010	50	3.30	63.61	4.27	2.05	1.83	0.036
	C3	Optiro 2011	50	30.40	58.47	8.35	2.39	5.22	0.076
	C4	Optiro 2010	50	18.53	61.17	8.08	1.97	2.22	0.034
	TOTAL			72.03	59.94	7.76	2.43	3.64	0.056
Inferred	BOWERBIRD NTH NTH	GWR 2009	50	2.58	60.84	5.19	2.19	3.64	0.050
	BOWERBIRD NTH	SNOWDEN 2008	50	3.90	59.70	6.50	3.80	2.60	0.040
	BOWERBIRD CENTRAL	Optiro 2011	50	0.80	58.15	9.48	3.83	2.86	0.045
	BOWERBIRD SOUTH	Optiro 2011	50	5.20	60.03	8.33	2.42	2.36	0.038
	JWD	Optiro 2013	55	3.40	63.13	3.23	1.58	3.38	0.029
	JINDALEE JOYNERS	Optiro 2010	50	3.90	62.47	4.81	2.12	2.16	0.057
	C1	SNOWDEN 2007	50	4.20	58.50	7.20	3.30	5.20	0.088
	C2	GWR 2009	50	6.76	58.52	6.89	2.86	6.25	0.036
	C3	Optiro 2011	50	4.40	56.70	8.97	3.25	6.13	0.069
	C4	Optiro 2010	50	3.08	58.00	10.30	2.85	3.60	0.035
	C5	SNOWDEN 2007	50	4.40	59.10	8.90	2.10	3.80	0.118
	CR	SNOWDEN 2007	50	4.00	60.60	9.30	1.40	1.70	0.030
	SOUTH 2	SNOWDEN 2008	50	2.20	56.20	9.10	2.03	7.80	0.077
	TOTAL			48.82	59.45	7.45	2.57	4.03	0.055
Deposit Totals	BOWERBIRD NTH NTH	GWR 2009	50	2.58	60.84	5.19	2.19	3.64	0.050
	BOWERBIRD NTH	SNOWDEN 2008	50	3.90	59.70	6.50	3.80	2.60	0.040
	BOWERBIRD CENTRAL	Optiro 2011	50	8.00	60.06	7.70	3.38	2.51	0.051
	BOWERBIRD SOUTH	Optiro 2011	50	18.20	60.37	7.51	2.77	2.74	0.045
	JWD	Optiro 2013	55	10.70	63.74	2.83	1.52	3.21	0.032
	JINDALEE JOYNERS	Optiro 2010	50	7.20	62.99	4.57	2.09	2.01	0.047
	C1	SNOWDEN 2007	50	4.20	58.50	7.20	3.30	5.20	0.088
	C2	GWR 2009	50	6.76	58.52	6.89	2.86	6.25	0.036
	C3	Optiro 2011	50	37.30	58.26	8.43	2.49	5.32	0.077
	C4	Optiro 2010	50	21.62	60.72	8.39	2.09	2.42	0.034
	C5	SNOWDEN 2007	50	4.40	59.10	8.90	2.10	3.80	0.118
	CR	SNOWDEN 2007	50	4.00	60.60	9.30	1.40	1.70	0.030
	SOUTH 2	SNOWDEN 2008	50	2.20	56.20	9.10	2.03	7.80	0.077
	GRAND TOTAL			131.10	60.00	7.40	2.40	3.80	0.060

Refer to ASX Announcement for more details.

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

Wiluna West Iron Ore

GWR IS SUCCESSFULLY TRANSITIONING FROM EXPLORER TO ACTIVE MINER. THE COMPANY 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.

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