The Pilbara Resource Group has commenced work at the C4 deposit in the Wiluna West iron ore project in Western Australia on behalf of GWR Group.
Under the contract, the Pilbara Resource Group will carry out development, mining and transport works for stage one of the project, which covers 1 million tonnes of C4’s estimated 21.6 million tonne mineral resource.
GWR retains a 70 per cent share of the project profit, as well as the rights for ore sales, strategy and timing but is not required to provide any upfront capital or operating expenses.
The company has started accepting offtake proposals for the sale of the high-grade direct shipping ore (DSO) product and is close to finalising discussions with the Mid West Ports Authority for port and shed access at the Port of Geraldton.
GWR has also commenced early haul road construction, water supply and site infrastructure works and the first mining equipment is arriving onsite, as well as forming a service agreement with the nearby Rosslyn Hill mine, which is currently on care and maintenance for access to the village, workshops and water site services.
Chairman Gary Lyons said the execution of the contract is “very significant” for GWR Group and its shareholders.
“The early works currently being performed, and recently announced mining approvals represents a major milestone for the company, paving the way for the commencement of commercial iron ore production at the Wiluna West iron ore project,” Lyons said.
“The Wiluna West iron ore project (is) an exceptional DSO iron ore development project which will produce a high-grade, low impurity iron ore. The company aims to take advantage of the current strong iron ore prices.”
The C4 deposit is 1.4 kilometres long and comprises a 21.6 million tonne mineral resource at 60.7 per cent iron and a combined DSO hematite.