GWR Group Ltd (ASX:GWR) is progressing towards securing final approvals over the wholly-owned C3 high-grade Iron ore deposit in Western Australia which contains 37.3Mt @58.3% Fe and lies south of the C4 deposit and immediately east of the Bowerbird Central (8Mt @60.1% Fe) and Bowerbird South (18.2Mt @60.4% Fe) deposits.
GWR has submitted a Mining Proposal for the development of the Stage 1 C3 Pits that encompasses a 4km long extension to the existing C4 Haul road, mobile crushing facilities and associated infrastructure.
The C3 deposit will be considered “production ready” and having all mining approvals in place. This allows for the company to expediate its monetization strategy and unlock considerable value across the remaining 10 deposits and use the GV agreement as a benchmark for future transactions.
Importantly, GWR has undertaken pit optimization studies and has identified two high grade (>61% Fe) Stage 1 open pits at the northern end of the C3 Deposit for immediate development.
• GWR has submitted a Mining Proposal for the development of the Stage 1 C3 Pits that encompasses a 4km long extension to the existing C4 Haul road, mobile crushing facilities and associated infrastructure.
• A potential production ready C3 has allowed GWR to enter into advanced negotiations with external parties to either purchase/offtake a portion of the eleven iron ore deposits or to acquire the mining rights.
• GWR is working with these interested parties towards a potential June 2023 mobilization at the C3 deposit which only requires a four km long extension to the existing C4 haul road to transport ore to the Goldfields Highway. The ability to use Geraldton port to export ore remains and the potential to export via the Port of Esperance has recently been identified.
• GWR has set a strong precedence with the Gold Valley Iron Ore Pty Ltd (GV) mining rights agreement of JWD and C41 which will see the Company receive a minimum of approximately $52 million from GV over the next 10 years.
• The C3 Stage 1 mine is a high grade, low strip ratio operation with a significant outcrop of DSO material with the current high iron ore price and strong USD are all attributes that will lead to a healthy operating margin.
• GWR is also currently reviewing several acquisition opportunities.
“The GWR team has worked diligently to advance the C3 deposit that has attracted the interest of several experience and interested parties, with discussions now at an advanced stage for a potential sale/offtake or mining rights agreement,” Chairman, Gary Lyons, said.
“We are working towards seeing these parties mobilized on site around June 2023 and note the proposed C3 Stage 1 mine is a high grade, low strip ratio operation with a significant outcrop of DSO material with the current high iron ore price and strong USD are all attributes that will lead to a healthy operating margin.
“I look forward to updating the market once an agreement is reached that will further strengthen the GWR balance sheet in conjunction with the ‘take-or-pay’ and royalty payments from the C4 Iron ore deposit.”
For further information please visit: https://gwrgroup.com.au/