Tag Archives: GWR Group

Fe Ltd and Big Yellow make plans to mine JWD iron ore project

Fe Limited says it has executed a letter of intent (LOI) with Big Yellow that could see the emerging company become the mining contractor for the JWD iron ore project in the Pilbara of Western Australia.

A full form contract is targeted to be completed within the next 30 days, subject to receipt of necessary environmental approvals and logistic contracts. This LOI, the company says, will enable Big Yellow to allocate the necessary mining fleet and people to the FEL project.

Big Yellow is a new contractor founded by mining executives Brad Gordon (former CEO of Acacia and Intrepid), David Edwards and Mitch Wallace (both ex MACA).

“FEL believes that Big Yellow’s combination of experienced personnel looking to replicate their past success in a new entity is a good fit with FEL’s own aspirations to do the same and looks forward to continuing to work together,” it said.

Following the LOI being executed by both parties, discussions have commenced on works that can be commenced in advance of final environmental approvals being received.

The approvals received to date allow certain clearing and preparatory works to occur at JWD, along with refurbishment of the existing office facilities on site. These early works will allow a faster ramp-up of operations once the remaining approvals and key contracts are secured, FEL claims.

FEL says it has revisited the JWD geological model and mine plan, with opportunities identified for a reduction in the strip ratio and an improved average iron ore head grade. If successfully implemented, this would have a positive impact on its margins through reduced mining costs and improved pricing as a result of higher-grade products than initially expected, it said.

FEL Executive Chairman, Tony Sage, said: “With mining at Wiluna close to commencing, we are pleased to have advised Big Yellow of our intention to appoint them as our mining contractor. We are well advanced with the final approvals and other key contracts and would anticipate being able to update shareholders on these shortly.”

In September, FEL acquired a 51% interest (including operatorship) in the Gold Valley Iron Ore Mining Rights Agreement over the Wiluna West JWD deposit. The JWD project is part of the wider Wiluna West project, owned by GWR Group. It came with a 10.7 Mt resource grading 63.7% Fe using a 55% Fe cutoff.

FEL classes the project as a low capex, direct shipping ore development, which will produce a high-grade (resource average circa-63.7% Fe), low impurity iron ore. A January 2021 presentation claimed the mining and transport of the first 300,000 t of iron ore is required by September under the iron rights agreement.

GWR’s Wiluna West iron ore project heads for production with PRG contract

GWR Group says it has reached agreement on key terms for a works contract with the Pilbara Resource Group Pty Ltd (PRG) to undertake the development of Stage 1 of the C4 iron deposit, part of the Wiluna West iron ore project, in Western Australia.

As part of this agreement, PRG will carry out agreed works for development, mining and transport of Stage 1 of the C4 deposit, including construction of the haul road, open pit and other required facilities and infrastructure, surveying, mining, crushing, screening and transport to port based on a schedule of rates to be agreed. PRG will be entitled to a 30% share of the profit from Stage 1 of the C4 iron deposit.

GWR, meanwhile, will undertake mine design, planning and optimisation for Stage 1 of the C4 iron deposit.

GWR Chairman, Gary Lyons, said the execution of a term sheet for development of the deposit was very significant for GWR shareholders and, together with the 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”.

He added: “The Wiluna West iron ore project, an exceptional direct shipping ore (DSO) iron ore development project, will produce a high grade, low impurity iron ore.”

Scott Dryland, Managing Director of the PRG, said: “This project has added to a record year for PRG. Our business has gone from strength to strength and we are extremely happy to have the opportunity to deliver this project in partnership with GWR.”

The C4 iron deposit is 1.4 km long and contains a combined DSO hematite, JORC 2004 mineral resource estimate of 21.6 Mt at 60.7% Fe, comprising 18.5 Mt at 61.2% Fe indicated and 3.1 Mt at 58% Fe inferred. It has widths of DSO hematite mineralisation of up to 120 m with close spaced RC drilling having previously been undertaken on a 25 m by 10 m spacing over a strike length of 200 m, according to GWR.

The C4 Stage 1 project targets a 500 m strike length of outcropping high-grade DSO hematite mineralisation within the larger C4 deposit, with GWR having undertaken internal mine designs and scheduling.

GWR says it has been engaging with the Port of Geraldton and current users for port and shed access and continues to investigate other opportunities. Discussions are ongoing and well advanced with a nearby established mine in the Wiluna area for access to site services such as village, workshops and water, it added.

In line with the term sheet, GWR and PRG will negotiate a formal contract documentation including a works contract as soon as possible.