The Prospect Ridge joint venture (JV) between Dynamic Metals (ASX: DYM) and GWR Group (ASX: GWR) in Tasmania has thrown up a massive 118.7m intersection grading 43.3 per cent magnesium oxide from just 6.3m during a diamond drill campaign.
The JV’s four-hole program targeted the central portion of the Arthur River deposit, with broad zones of significant mineralisation encountered in all holes. Additional impressive intercepts from the diamond program delivered 61.5m at 42.9 per cent magnesium oxide from 11.3m, 30.8m going 43.7 per cent from 92.7m and 34.5m grading 42.1 per cent from 75.5m.
Arthur River is a large, high-grade magnesium deposit where previous exploration identified an inferred mineral resource estimate of 25.1 million tonnes at a grade of 42.4 per cent magnesium oxide, 4.8 per cent silica, 1.4 per cent iron oxide and 2.6 per cent calcium oxide. The resource was based on diamond drilling through a strike distance of about 800m, where 44 holes were put in for 6939m on lines ranging between 150m and 50m apart.
Interestingly, the latest results also delivered anomalous sulphur in one of the holes, with a 11m intercept at 2.4 per cent from 62m including 2m grading 9.2 per cent from 68m. A deeper 10m section recorded 0.4 per cent sulphur from 99.5m to the end of the hole.
The JV says the sulphur results also contain elevated iron and will be resubmitted to the laboratory for a suite of elements including gold, silver and copper.
The drilling results mark a milestone in our Project, underscoring its potential. GWR Group chairman Gary Lyons
The ownership in Prospect Ridge, which sits 40km south-west of Burnie in north-west Tasmania, sees GWR with a 70 per cent share and Dynamic holding the remaining 30 per cent. The project, understood to contain Australia’s third-biggest magnesite inventory, sits on a granted exploration licence that is 11km long and 51 square kilometres in area, with two magnesite deposits – at Arthur River and Lyons River.
A second-phase drilling program has been approved by Mineral Resources Tasmania, with an additional six holes planned for 900m at Arthur River to provide metallurgical samples and assist with mineral resource estimation. Management says it is also investigating the iron oxide-copper-gold (IOCG) potential of the project to follow up indications of sulphides and copper from previous explorers in the region.
Just last week, the JV revealed that the University of Tasmania is testing a 69.9km composite magnesite sample from Arthur RIver in a bid to reduce contaminants such as silica.
The sample is being assessed by the university’s Centre for Ore Deposit and Earth Sciences (CODES), as part of the Federal Government-funded Regional Research Collaboration Grant. With sizeable new assays now at hand, a positive testing assessment would no doubt add more bang to the JV’s buck.
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