Resource Development Group (RDG)has received approval to develop its Lucky Bay garnet project in Western Australia, with construction to begin in the third quarter of 2021.
Formerly known as the Balline garnet project, Lucky Bay has an eight-year mine life with construction estimated to take around six months.
RDG will employ 70 people on-site during its construction.
It is slated to enter production in early 2022 with a target production of 130,000 tonnes per annum of garnet.
The garnet will be exported through the Ports of Fremantle and Geraldton in Western Australia.
The company has secured $60 million in funding for the project’s capital cost.
RDG managing director Andrew Ellison said the project marks a significant milestone for the company.
“Results of the recent drilling program have provided us with confidence in the continuity of mineralisation at Lucky Bay, with the updated resource to be released later this month,” he said.
“The detailed design of the mining and process plant has been completed and long lead orders are in place. With all of our approvals also in place, we are aiming to commence construction in the coming quarter.
“This is an extremely exciting project for RDG and will see us move the Lucky Bay Garnet Project into production. This 100 per cent owned project is a significant milestone for RDG and we’re really pleased to be able to deliver this project for our shareholders.”
RDG acquired the project on February 2021 from Australian Garnet.
Lucky Bay’s early on-site works, drilling to upgrade and extend the resource, installation of ground water production bores and geotechnical designs have been completed ahead of the earthworks which are scheduled for the third quarter of 2021.
Technical support for the project will be provided by Mineral Resources, which is a major shareholder of RDG.