Dynamic Metals Ltd (ASX:DYM) is leveraged to continuing progress by GWR Group (ASX:GWR) Ltd at Prospect Ridge Magnesite Project in northwest Tasmania where diamond drilling has returned thick intersections of up to 118.7 metres at 43.3% magnesium oxide (MgO) from 6.3 metres.
As well as the strong MgO results from the project, which is 30% held by Dynamic and 70% by GWR, highly anomalous sulphur was intersected in one hole.
This hole returned 11 metres at 2.4% sulphur from 62 metres, including 2 metres at 9.2% and 10 metres at 0.4% sulphur from 99.5 metres to the end of hole along with 34.5 metres at 42.1% MgO from 75.5 metres.
Strong diamond drill results
Phase 1 diamond drilling has been completed by Metallo Pty Ltd using an Atlas Copco Mustang track-mounted diamond drill rig at the Arthur River deposit consisting of four HQ3 diamond drill holes for 485.3 metres and as well as the 118.7-metre and 34.5-metre intersections, it returned:
- 61.5 metres at 42.9% MgO from 11.3 metres; and
- 30.8 metres at 43,7% MgO from 92.7 metres.
These intersections also contain elevated iron (Fe) and will be resubmitted for a suite of elements including gold, silver and copper using ICP.
The drilling targeted the central portion of the Arthur River deposit and broad zones of significant mineralisation were encountered in all holes.
A submission for the Federal Government's R&D tax incentive scheme has recently been completed by GWR Group and the company is awaiting the outcome.
“Underscore potential”
GWR’s chairman Gary Lyons said: “The drilling results mark a milestone in our project, underscoring its potential.
"The company is further encouraged by the completion of our R&D submission following ongoing efforts in the potential for multiple end-user applications.”
GWR is an industry partner that is part of the Federal Government-funded Regional Research Collaboration Grant (RRC), being undertaken by the Centre for Ore Deposit and Earth Sciences University of Tasmania (CODES).
The RRC project focuses on Northwest Tasmania and aims to enhance Australia’s economy through research, training and environmentally sustainable production of critical metals.
Metallurgical test work is being undertaken by Nagrom and CODES for the RRC project on drill core from the Phase 1 drilling program and this work includes:
- 143-kilogram master composite sample prepared by Nagrom in Perth from the diamond drill core obtained in the 2023 drilling program for metallurgical test work.
- 69.9 kilograms of the master composite forwarded to CODES in Hobart as part of the RRC project.
- Current work is focusing on ways to reduce contaminants in particular silica and optimising the flow sheet.
About Prospect Ridge
Prospect Ridge, which is 40 kilometres southwest of the Port of Burnie and sits upon a granted Exploration Licence (EL5/2016), is 11 kilometres long and 51 square kilometres in area.
It contains two magnesite deposits, the Arthur River and Lyons River deposits, which together contain the third largest magnesite inventory in Australia.
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.
Further drilling
Approval was granted on May 1, 2024, by Mineral Resources Tasmania for a Phase 2 drilling program consisting of six drill holes for 900 metres at the Arthur River deposit.
Phase 2 drilling will be used to provide additional metallurgical samples, assist with mineral resource estimation and domaining of mineralisation types.