Jindalee Resources Ltd (ASX:JRL) has executed a sale and purchase agreement (SPA) with GWR Group (ASX:GWR) Ltd for the acquisition of a 70% interest in its advanced Prospect Ridge Magnesite project in northwest Tasmania.
The acquisition initiates GWR's move into the 'green' sector, with magnesite the principal ore for magnesium, the lightest structural metal known to man, being two thirds lighter than aluminium.
Moving forward, the GWR geological team will conduct a site visit in mid-March and will look to engage with local geological and exploration teams, drilling contractors, metallurgists and the Port of Burnie, as well as state and federal governments.
Into the “green sector”
GWR chairman Gary Lyons said: “We are pleased to have finalised the SPA for the advanced Prospect Ridge Magnesite project which will propel GWR into the 'green sector'.
“With the opening of the Western Australian borders, the GWR team is excited to conduct a site visit in the coming weeks and begin to engage with a host of services as well as the Port of Bernie and state and federal governments.
“In September 2021, the Australian Federal Government announced that it will establish a $2 billion fund to finance critical minerals production in Australia. It was stated that critical minerals include resources that are used in technologies such as mobile phones, computer monitors, electric cars and solar panels, such as lithium, magnesium and nickel. Magnesium has also been identified as a Top 50 Critical Mineral by the United States.”
Forward plan
Desktop and transport studies will begin following the site visit and an initial engagement with potential offtake partners for a DSO product has already been initiated.
GWR will also focus its studies towards a low-cost, zero waste, high-quality and eco-friendly downstream process that will enable GWR to benefit from a value-add processed product, and has commenced identifying the required technology.
Lyons adds: “I firmly believe that this project provides an excellent opportunity to enter the 'green' global magnesium market - we have initiated discussions for European offtake of a DSO product that will enable GWR to apply our experience in bulk commodity mining and in addition, we have begun to identify technology partners to provide us with the opportunity of benefiting from downstream processing.
“I very much look forward to updating shareholders regarding advancements in the Prospect Ridge project.”
About the project
The Prospect Ridge Magnesite project area sits on a granted exploration licence, (EL5/2016), it is 11 kilometres long and 51 square kilometres encompassing two deposits, the Arthur River and Lyons River deposits containing the third largest magnesite inventory in Australia.
The project is situated just 55 kilometres west south-west from the Port of Burnie, which is one of the state's key deep-water ports and the largest general cargo port in Tasmania. This enables GWR to use its bulk commodity production expertise to explore a low capex opportunity for DSO magnesite production and export.
Jindalee’s inferred mineral resource estimate at the Arthur River Deposit delivered 25 million tonnes of magnesite grading 42.4% MgO, 4.8% SiO2, 1.4% Fe2O3 and 2.6% CaO to an average depth of 100 metres below surface at a cut-off of 40% MgO.