Pure Resources to Acquire High-Grade Garnet Project in Western Australia
PURE RESOURCES LIMITED (PR1) Share Update July 2024 Wednesday 24th
Pure Resources Acquires High-Grade Garnet Project in WA
Pure Resources Limited (ASX: PR1) has announced a binding option agreement to acquire the Reedy Creek Garnet Project, a high-grade, outcropping industrial garnet deposit located in northeast Western Australia.
Instant Summary:
- Secured option to acquire the Reedy Creek Garnet Project.
- Project located on a live mining lease, granted until 2038.
- Historical drill results show high-grade garnet deposits.
- Plans for trial mining and advanced ore-sorting technology.
- Targeting established markets in Australia, USA, and Asia.
Project Acquisition
Pure Resources Limited has entered into a binding option agreement to acquire the Reedy Creek Garnet Project, situated 90 kilometers north of Halls Creek, Western Australia. The project covers an area of 359.60 hectares under mining lease M80/416, which is granted until 2038.
The Reedy Creek Project is dominated by andradite garnet, with lesser amounts of grossular and almandine garnet. The project is strategically located near established infrastructure and markets in Asia and the world.
Development Plans
Pure Resources plans to assess the near-term development potential of the project. This includes trial mining, campaign crushing, screening, and ore-sorting using state-of-the-art technology. The company aims to target markets for jet cutting, abrasive blasting, water filtration, bonded abrasives, and concrete aggregates.
Historical drill results from the project have shown high-grade garnet deposits, including:
- 6m @ 78% garnet from surface (GHR010)
- 10m @ 65% garnet from 2m (GHR015)
- 8m @ 49% garnet from surface (GHR001)
Market Potential
Given the scarcity of global high-grade hard rock garnet projects, Pure Resources will focus on higher-margin end-products to meet the strong demand for hard-rock garnet. The company has identified high-priority targets for upcoming mapping, sampling, and drilling programs.
Metallurgical test work results are pending, following the submission of 100kg of garnet skarn material. These results will help determine the basket of end products the project will derive. The company also plans to engage a product marketing expert to consult with global end users.
The acquisition of the Reedy Creek Garnet Project positions Pure Resources as a potential key player in the industrial garnet market. The project's high-grade deposits and strategic location could significantly enhance the company's value. Investors may see this as a positive development, potentially boosting Pure Resources' stock price.
Investor Reaction:
Pure Resources' Executive Chairman, Mr. Patric Glovac, expressed excitement about the acquisition, highlighting the project's potential to become one of the few commercially viable hard rock garnet mines in the world. Analysts have noted the project's strategic location and high-grade deposits as key factors that could drive investor interest.
Conclusion:
Investors should keep an eye on Pure Resources' progress with the Reedy Creek Garnet Project. The company's plans for trial mining and advanced ore-sorting technology, along with its focus on high-margin end-products, could lead to significant growth opportunities. Stay informed on further updates and potential impacts on your investment portfolio.