Dynamic Metals Ltd (ASX:DYM) welcomes the progress made by GWR Group (ASX:GWR) Ltd at the Prospect Ridge Magnesite Project in northwest Tasmania, in which it holds a 30% stake.
Prospect Ridge, which is 40 kilometres southwest of the Port of Burnie and sits upon a granted Exploration Licence, contains Australia’s third largest magnesite inventory.
GWR has made significant steps in progressing the project, which contains two magnesite deposits - Arthur River and Lyons River - with magnesite core samples being analysed by a leading manufacturer of refractories in Europe.
RRC progress
Progress has also been made with the Federal Government-funded Regional Research Collaboration Grant (RRC), in which GWR is an industry partner. The RRC is being undertaken by the high-calibre Centre for Ore Deposit and Earth Sciences University of Tasmania (CODES).
The focus of this project is the environmentally sustainable production of critical minerals and building economic capacity in northwest Tasmania. It aims to enhance Australia’s economy through research, training and environmentally sustainable production of critical metals.
It incorporates a team dedicated to the Prospect Ridge Magnesite Project, which includes a highly motivated PHD student working on the project full time, supported by a team from CODES.
Sample being assessed
For metallurgical test-work a 143-kilogram master composite sample from Prospect Ridge has been prepared by Nagrom in Perth from diamond drill core obtained in a 2023 drilling program. As part of the RRC project, 69.9 kilograms of the master composite has been forwarded to CODES in Hobart.
Current RRC work is focusing on ways to reduce contaminants, in particular silica and optimising the flow sheet.
Arthur River is a large high-grade magnesium deposit where previous exploration has identified an inferred mineral resource estimate of 25.1 million tonnes at 42.4% MgO.
Domaining of magnesite mineralisation types for the Arthur River and Lyons River deposits is being undertaken using geochemistry and historical diamond drill core stored at the Mineral Resources Core Library in Hobart.
GWR’s chairman Gary Lyons said: “After having bolstered our cash balance to more than $38 million with an additional ~$9 million of tradeable listed securities, we are delighted to have the resources to advance a project of such significance, not only to Tasmania but also Australia in moving towards domestic magnesium production."
Upcoming drilling
An application has been made to refresh drilling approvals with Mineral Resources Tasmania (MRT) for the drilling of 27 holes for an aggregate of 4,050 metres including six priority-1 holes for 450 metres at Arthur River. This infill drilling and the domaining will support an updated mineral resource estimate for the deposit.
GWR’s current work is focusing on determining which end-use magnesium sectors it can derive an economic product and this includes development of a flow sheet focused around ways to reduce contaminants in particular silica
The company is reviewing the most effective and low-cost, low-carbon downstream processing for a high-quality low waste magnesium product.
It also plans to investigate historical gold, copper and iron ore occurrences identified within the project as it is believed they may exhibit IOCG synergies.
This will include review of the historical drilling where sulphides and copper have been identified and the company notes the recent exploration for copper conducted by others in the region.
‘Green processing’ opportunity
GWR is actively assessing opportunities for a 'green processing’ opportunity with a potential industrial hub planned by the Tasmanian Government at Hampshire, <40 kilometres from the project, where a combination of hydro (already available) and wind power sources are planned.
In addition, Porsche-backed HIF Global has lodged plans with Tasmania's Environment Protection Authority to build Australia's first commercial-scale e-fuel facility in the area.