GWR Advances Prospect Ridge Drilling Amid Strategic Asset Realignment
GWR Group Limited reports completion of phase two drilling at its Prospect Ridge Magnesium Project with assay results pending, while divesting its Hatches Creek interest to bolster focus and capital for growth.
- Completed six-hole, 742m phase two diamond drilling at Arthur River deposit
- Assay results pending, influencing approval of potential third drilling phase
- Disposed of 80% interest in Hatches Creek Tungsten Project, increasing stake in Tungsten Mining NL to 19.86%
- Strong cash position with $37.3 million and $14.3 million in listed securities
- Ongoing metallurgical work with University of Tasmania to improve ore quality
Prospect Ridge Project Progress
GWR Group Limited (ASX: GWR) has marked significant progress in the December 2024 quarter on its flagship Prospect Ridge Magnesium Project in northwest Tasmania. The company completed the second phase of its diamond drilling program at the Arthur River deposit, comprising six holes totaling 742 meters. These efforts aim to refine the mineral resource estimate and provide fresh metallurgical samples critical for advancing project development.
While assay results from this drilling phase remain pending, their release will be pivotal in determining the scope and timing of a proposed third drilling phase. This next phase could involve up to 21 additional holes, potentially utilizing reverse circulation drilling to enhance resource confidence and support future feasibility studies.
Metallurgical Advances and Industry Interest
In parallel with drilling, GWR has made notable strides in metallurgical test work focused on removing deleterious elements such as silica (SiO2). Collaborating with the University of Tasmania's Centre for Ore Deposit and Earth Sciences (CODES), the company expects to provide an update on these efforts early in 2025. This work is crucial to improving the quality and marketability of the magnesite ore, which holds promise for applications in lightweight metals and refractory materials.
In addition, GWR has attracted expressions of interest from leading global refractory manufacturers, signaling early commercial validation of the Prospect Ridge asset. The project’s substantial inferred mineral resource of 25 million tonnes at 42.4% MgO positions it as a significant player in Australia's critical minerals landscape.
Strategic Portfolio Realignment
During the quarter, GWR divested its remaining 80% interest in the Hatches Creek Tungsten Project to Tungsten Mining NL (ASX: TGN) in exchange for 107.5 million shares, increasing its voting power in TGN to nearly 20%. This move reflects a strategic focus on core assets and capital efficiency, allowing GWR to concentrate resources on advancing Prospect Ridge and evaluating complementary acquisitions.
The company maintains a robust balance sheet with $37.3 million in cash and $14.3 million in ASX-listed securities, providing a solid foundation for ongoing exploration and potential project acquisitions. GWR continues to appraise new opportunities aligned with its critical minerals focus, particularly those that could synergize with Prospect Ridge.
Corporate and Governance Updates
On the corporate front, GWR appointed Simon Borck as Chief Financial Officer and Joint Company Secretary, following the resignation of previous executives. These leadership changes underscore the company’s commitment to strong governance as it navigates its next growth phase.
Overall, GWR’s December quarter activities demonstrate a disciplined approach to exploration, project development, and portfolio management, positioning the company to capitalize on the growing demand for magnesium and other critical minerals in advanced industrial applications.
Bottom Line?
As assay results loom and strategic moves sharpen focus, GWR’s next steps will be critical in defining its role in Australia’s critical minerals sector.
Questions in the middle?
- When will the assay results from the phase two drilling be released, and how might they impact the resource estimate?
- What are the specific outcomes expected from the upcoming metallurgical test work with UTAS/CODES?
- Which potential acquisitions is GWR considering to complement the Prospect Ridge Project?
