GWR Group Limited (ASX: GWR) has announced high-grade RC drill results from the infill drilling program designed as pre-production grade control over a strike length of 425 m within the proposed Stage 1 open pit of the Wiluna West Iron Ore C4 deposit in WA.
The company reported that 43 holes for 1,815 m of RC drilling were recently completed at the Wiluna West Iron Ore C4 deposit. GWR said that the pre-production, step-out, and grade control drilling was undertaken over a strike length of 425 m at the proposed Stage 1 open pit of the C4 deposit where mining is due to commence in the first week of December 2020.
GWR Group said that the step-out drilling intersected significant widths of high-grade, low-impurity mineralisation from drilling undertaken ~75 m south and outside of Stage 1 development pit.
Important results include 16 m @ 65.1% Fe from 14 m to end of hole; and 30 m @ 61.8% Fe from 6 m to EOH.
GWR noted that the high grade mineralisation intersected by the step out drilling was not predicted in the current Resource model and represents a potential addition to the Stage 1 mining operation. The Company said that it will look to follow up on this potential extension.
The company said that the Stage 1 pit is now drilled-out on an approximate 25 m by 10 m spacing (~30 m depth). Significant results include 28 m @ 65.1% Fe from surface to EOH; 27 m @ 64.3% Fe from 1 m to EOH; 27 m @ 64.1% Fe from surface to EOH; and 25 m @ 63.1% Fe from 3 m.
GWR said that the infill drilling was largely consistent with that expected providing confidence in the Resource model and continuity. GWR said that it is now updating the Resource model to a mining model, undertaking new pit optimisations, preparing final pit designs, and preparing new mining schedules.
The company reported that Dynamic Drill and Blast Holdings Ltd was engaged to provide drilling and blasting services and these operations are due to commence within 7 days.
Wiluna West Iron Ore Project
The Wiluna West Iron Ore Project, is an exceptional, DSO iron ore development project, which aims to 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.
Significant deposits include Bowerbird Central, Bowerbird South, Joyners Find JWD, Joyners Find North, C3 and C4 deposits. The John William Doutch (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.
RC drilling at the C4 deposit
The company had recently completed 43 RC drill holes for 1,185 m infill drilling program, designed as pre-production grade control over a strike length of 425 m within the proposed Stage 1 open pit of the Wiluna West Iron Ore C4 deposit to be mined.
Stage 1 relates to just 1 million tonnes of C4’s JORC 2004 Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe an exceptional, DSO iron ore development project, which will produce a high grade, low impurity iron ore (comprising of 18.6 Mt at 61.2% Fe Indicated and 3.1 Mt @ 58.0% Inferred).
High-grade assay results from C4 step-out drilling
The company reported that a total of 8 RC holes for 238 m was completed up to 75 m to the south of the proposed Stage 1 development pit and based upon geological logging and assays confirmed high grade hematite mineralisation.
GWR said that the high grade mineralisation intersected by the step out drilling is not predicted in the current Resource model and represents a potential addition to the Stage 1 mining operation. The company said that it will look to follow up on this potential extension with further drilling
High-grade assay results received from this drilling campaign include 16 m @ 65.1% Fe from 14m to EOH – WWRC3184; and 30 m @ 61.8% Fe from 6m to EOH – WWRC3186.
Encouraging results from C4 pre-production infill and grade control drilling
The company said that the infill drilling at the C4 deposit was largely consistent with that expected providing confidence in the Resource model and continuity.
The program consisted of 35 Infill RC drill holes for 947 m, implying that the C4 Stage 1 pit is now drilled-out on an approximate 25 metre by 10 m spacing with recent hole depths designed to only test within the pit limit (~30m depth).
High-grade assay results received from this drilling campaign include 28 m @ 65.1% Fe from surface to EOH – WWRC3168; 27 m @ 64.3% Fe from 1 m to EOH – WWRC3172; 27 m @ 64.1% Fe from surface to EOH (EOH) – WWRC3172; 25 m @ 63.1% Fe from 3 m – WWRC3152; and 11 m @ 64.7% Fe from 19 m – WWRC3177.
Updates and next steps
The company said that future work will include updated Resource modelling and pit optimisations and designs.
GWR said that Dynamic Drill and Blast Holdings Ltd has been engaged to provide a production drill rig for blasting and provide blasting services and these operations are due to commence within 7 days.
GWR reported that it is now updating the Resource model to a mining model, undertaking new pit optimisations, preparing final pit designs, and scheduling.
The Company said that it will continue to announce updates as it reaches Key Production Milestones ahead of production of the High-grade C4 Iron Ore DSO hematite project, including Port and Shed access, offtake agreements, commencement of mining and first sales/shipment of ore.
Management statements
GWR Chairman Gary Lyons said: “The results received from this drilling campaign designed to test the continuity of mineralisation within the C4 Optimised Stage 1 Pit were consistent with those predicted providing confidence in the Resource model and continuity of the mineralisation. These results will be incorporated into a new mining Resource model and pit optimisation studies.
Futhermore, the results from the step-out drilling were highly encouraging, with significant high-grade intersections ~75 metres south and outside of the Optimised Pit, provides the opportunity to extend the Stage 1 Pit and with further step-out drilling success to potentially increasing the tonnage at C4’s Mineral Resource.
We are rapidly achieving our production milestones and remain on track for first shipment of ore to be transported in early January 2021 taking advantage of the strong commodity cycle”.