GWR Group (ASX: GWR) and Dynamic Metals (ASX: DYM) have kicked off a new drill campaign at their joint venture (JV) Prospect Ridge magnesium project in north-western Tasmania, as the partners also prepare to launch into a scoping study at the site.
The study for the project that sits 40km south-west of the town of Burnie will use results from recent drilling and previous feasibility studies and will get financial assistance through the Federal Government-funded Regional Research Collaboration (RRC) program.
Prospect Ridge is 70 per cent-owned by GWR, with Dynamic holding the remaining 30 per cent stake. The project sits on a 51-square-kilometre exploration licence that features a pair of promising magnesite targets.
The phase two diamond drill program consisting of six holes for 900m is being conducted at the JV’s high-grade Arthur River deposit that hosts a mineral resource of 25.1 million tonnes at 42.4 per cent magnesium oxide. A proposed third-phase drill program comprising 21 drillholes for 3150m is expected to follow, depending on the phase two results and weather conditions.
The JV is investigating the possibility of using reverse-circulation (RC) drilling for its phase-three campaign, as it would providing a cost saving compared to the more expensive diamond drilling. Management expects the program to increase its confidence in the resource at Arthur River.
The drilling program will be used to provide additional metallurgical samples, assist with mineral Resource estimation and domaining of mineralisation types, all valuable information that will assist in completing a detailed scoping study on the project.
GWR Group chairman Gary Lyons
Anomalous sulphur and iron were identified during exploration activities at the project last year, indicating the potential for an iron oxide-copper-gold (IOCG) system. It prompted a decision to submit 97 sample pulps for the assaying of valuable minerals such as gold, silver, copper, nickel, lead and zinc.
The JV’s Lyons River deposit sits about 5km south-west of Arthur River on the same exploration licence and is considered prospective for magnesium.
Magnesite is a magnesium mineral and is the source of about two-thirds of the world’s magnesium oxide. It is used in the production of synthetic rubber, in the preparation of magnesium chemicals and fertilisers and as a metal alloy to strengthen components used within the aircraft and automotive industries.
Interestingly, Canadian and Indian-based strategic markets researcher Precedence Research has forecast that demand for magnesium is expected to grow at a (CAGR) of 5.44 per cent from 2024 to 2033 due to an increase in die-casting and its use in aluminium alloys for various industrial purposes.
The JV partners have engaged consultants for environmental investigations and approvals, with plans to appoint an industrial minerals expert for market research and product definition purposes. It noted that its research and development application in relation to the project for the 2023 financial year has been submitted to AusIndustry.
The RRC program focuses on north-west Tasmania, with the intention to enhance Australia’s economy through the environmentally-sustainable production of critical minerals, in addition to training and research.
The GWR-Dynamic JV is intent on increasing the magnesium resource at its project to help it take advantage of the predicted ramp-up in demand for the critical mineral in the coming decade.
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