GWR Group Limited (ASX: GWR) has announced a highly encouraging updated MRE for the Wiluna West Gold project in the north-eastern Goldfields of Western Australia.
The company reported that the combined Mineral Resource Estimate for the Wiluna West Gold Project is now 4.2 million tonnes at 2.2 g/t for 289,000 oz, representing an increase of 34,500 oz or 13.5%.
GWR said that the Mineral Resource Estimates were updated for Golden Monarch, Eagle, and Emu and a maiden Mineral Resource Estimate was completed for Joyners Find.
GWR group reported that the JORC 2012 Measured and Indicated Resources total is 520,000 tonnes at 2.3 g/t for 43,000 oz.
The company announced that the resource definition drilling at Golden Monarch is now complete, with a clearing permit recently approved by DMIRS.
GWR said that a Mining Proposal is currently being assessed by DMIRS and the preparation of the Project Management Plan is well advanced and will be submitted in the short term.
The company also announced that negotiations are well advanced for finalising the JV Agreement with BLK for potential mining and milling of Wiluna West Gold deposits at BLK’s Matilda Gold project located only 40 km to north east.
Wiluna West gold project
The Wiluna West Gold Project is located on GWR’s Wiluna West tenements in the north-eastern Goldfields of Western Australia.
The project is located approximately 40 km southwest of the Blackham Matilda / Wiluna Gold Operation which includes a gold processing and treatment plant.
The important prospects of the Wiluna West project include Golden Monarch, Eagle, Emu, Joyners Find, Bottom Camp, Bowerbird, Bronzewing, Brilliant, Wren, Comedy King, Goldfinch, Iron King, and Iron Hawk.
HOA with BLK
In November 2018, GWR entered into a Binding Heads of Agreement (HOA) with Blackham Resources Limited (BLK) for the potential mining and processing of gold deposits from the Wiluna West Gold project.
Under the terms of the HOA with BLK, GWR was responsible for developing gold deposits to an Indicated Resource status as defined by the JORC 2012 Code and undertaking sighter metallurgical testwork at which point GWR may introduce a deposit as a Proposed Qualifying Deposit.
MRE for Wiluna West
The company has now reported the updated Mineral Resource Estimates (MRE’s) for Wiluna West in accordance with the JORC code (2012 edition).
The MRE was updated for the Golden Monarch, Eagle, and Emu deposits, incorporating recent RC drilling results. A total of 674 drill holes exist for 33,246 m of which 575 are RC drill holes for 27,816 m and were utilised in the Mineral Resource Estimate.
Meanwhile, Joyners Find represents a maiden MRE.
The company noted that the updated MRE was prepared by resource consultants Optiro on behalf of GWR.
13.5% increase in total MRE
The company reported that the combined JORC 2004 and 2012 MRE is now 4.2 million tonnes at 2.2 g/t for 289,000 oz of gold, representing an increase of 34,500 oz on the previous estimate. This is a nearly 13.5% increase from the June Quarter Activities Report.
GWR reported that the JORC 2012 at 0.5 g/t cut off (Optiro August 2019) Measured and Indicated Resources total is 520,000 tonnes at 2.3 g/t for 43,000 oz. This includes the Golden Monarch, Eagle, Emu, and Joyners Find.
The company reported that Golden Monarch has a Measured and Indicated Resources total of 800,000 tonnes at 2.2 g/t for 55,000 oz of gold while Eagle has a Measured and Indicated Resources total of 790,000 tonnes at 1.8 g/t for 45,000 oz of gold.
The company also reported an Inferred resource of 600,000 tonnes at 2.2 g/t for 40,000 oz of gold for Emu; while it reported an Inferred resource of 90,000 tonnes at 2.6 g/t for 10,000 oz of gold for Joyners Find.
GWR noted that the Emu deposit yielded the largest increase – up by 11,300 oz or approximately 40%, with the deposit open along strike.
The company reported that the next steps to be undertaken by the management team includes completion of the planned infill and extensional drilling for both the Eagle and Emu deposits.
This is aimed at increasing confidence levels and with the possible conversion of some of the Inferred Resources to Indicated Resource, enable these deposits to be assessed as Proposed Qualifying Deposits under the HoA with BLK.
The company said that it is planning to complete Flora and Fauna surveys planned for Eagle and Emu to underpin statutory approvals and finalise a Project Management Plan for mining Golden Monarch and submission to DMIRS.
GWR said that it is also finalising Joint Venture Agreement with BLK and hand over Golden Monarch, Eagle, and possibly Emu deposits as proposed Qualifying Deposits. This JV is aimed at potential mining and milling of Wiluna West Gold deposits at BLK’s Matilda Gold project located only 40 km to north east.