Resource Development Group Limited (ASX: RDG) has reported a 1,520% increase to its mineral resource at the Lucky Bay Garnet Project in Western Australia.
Highlights include:
- Total mineral resource tonnage up 1,808% from 23Mt to 438.8Mt
- Total mineral resource of heavy minerals up 1,467% from 1.2Mt to 18.8Mt
- Total mineral resource of garnet up 1,520% from 1Mt to 16.2Mt
- 86% of mineral resource tonnage (379.5Mt) is classified as measured or indicated
Lucky Bay Garnet Project
RDG purchased the former Balline Garnet Project (now Lucky Bay) in February 2021. The project’s tenements are located 530km north of Perth, between Kalbarri and Port Gregory, and are contiguous with the world’s largest supplier of high-quality alluvial garnet.
Location of the Lucky Bay Garnet ProjectExploration work
RDG has prioritised drilling at the project, with a view to delivering a comprehensive update to the mineral resource. The drilling campaign has confirmed continuity of mineralisation, and has identified several high-priority areas for future exploration. Mineralisation remains open to the north.
Analysis of non-garnet heavy minerals remains ongoing, providing a potential additional source of revenue for the project.
First production at Lucky Bay is expected to begin in early 2022.
The market for alluvial garnet
High-grade alluvial garnet is a mineral sand used as a material in abrasive blasting and water jet cutting.
RDG has flagged its intention to target sales at coarse-grade markets, that are facing potential undersupply of the product.
“With 86% of the Mineral Resource in the Measured and Indicated categories, we can proceed with project development studies with a high level of confidence”
Management comments
Resource Development Group Managing Director Andrew Ellison said: “This significant Mineral Resource upgrade is an outstanding result and confirms the upside potential we identified when RDG first evaluated the potential at Lucky Bay. With 86% of the Mineral Resource in the Measured and Indicated categories, we can proceed with project development studies with a high level of confidence.”
“The next step is to confirm our mining schedule as part of the Lucky Bay development studies ahead of a fast-tracked construction process”
Images: Resource Development Group Limited
