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Writer's pictureJames Pearson

Magnesium hunt kicks off for GWR, Dynamic Metals in Tasmania


The GWR Group-Dynamic Metals joint venture has kickstarted a phase-two metallurgical diamond drill program at its magnesium oxide project in Tasmania. Credit: File

GWR Group (ASX: GWR) and Dynamic Metals (ASX: DYM) have fired up the rigs for a phase two metallurgical diamond drilling program designed to target high-grade magnesium oxide at their Prospect Ridge joint venture (JV) project in Tasmania.


Situated in the mineral-rich north-west area of the Apple Isle, 40km south-west of Burnie, the project is poised to bolster Australia’s critical minerals sector as the demand for green metals continues to grow.


The program at Arthur River will drill six diamond holes through 900m, reaching down to 150m in depth. It follows the JV’s successful completion of its phase one program in May when it reported some outstanding magnesium oxide hits including 118.7m at 43.3 per cent from 6.3m, 61.5m at 42.9 per cent from 11.3m, 30.8m at 43.7 per cent from 92.7m and 34.5m at 42.1 per cent from 75.5m.


Intriguingly, the earlier program also threw up highly-anomalous sulphur and iron intercepts. Consequently, GWR has submitted 97 samples to Nagrom in Perth to assay for a range of other metals, hoping to reveal evidence of a potential iron oxide-copper-gold (IOCG) deposit.


The JV is set to start an additional third phase of its diamond drilling program later this year, targeting an extra 21 holes in a span of 3150m. The new phase is also designed to collect further metallurgical samples and enhance the geological comprehension of the deposit.


Upon completion, it is expected to bolster the company’s confidence in the 2012 resource estimate, which previously reported 25 million tonnes grading 42.4 per cent magnesium oxide.


In conjunction with the drilling efforts, a comprehensive scoping study has also been launched. The study will integrate data from previous feasibility studies, recent drilling activities and contributions from the Federal Government’s regional research collaboration grant (RRC).


Long recognised as the third-biggest magnesium oxide deposit in Australia, it convinced GWR to enter into the JV with HiTec Minerals – a 100 per cent-owned subsidiary of Dynamic – in January 2022. To acquire 70 per cent of the project, GWR was required to stump up $1 million in shares and cash and a $2 million exploration spending commitment over five years, with Dynamic retaining a 30 per cent free-carried position up to a decision to mine.


Meanwhile, the latter has also recently refilled its saddlebags with cash after successfully offloading 40 per cent of its lithium assets at the Widgiemooltha project in Western Australia’s Goldfields region to Mineral Resources in March for $5 million. The deal has an attached earn-in option to take MinRes’ ownership to 65 per cent for further expenditure of $15 million.


The Prospect Ridge project is now starting to attract material interest from the Tasmanian and Federal governments in the form of grants and research facilities in that State. With further drilling results due and magnesium added to Geoscience Australia’s critical metal list, it may not be too long before major industry players start knocking at the JV’s door.


Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au

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