Pure Resources Secures Reedy Creek Garnet Project: A New Venture in High-Grade Garnet Mining
PR1 (PR1) Share Update November 2024 Sunday 10th
Pure Resources Advances with Reedy Creek Garnet Project Acquisition
Pure Resources Limited (ASX:PR1) has exercised its option to acquire the Reedy Creek Garnet Project, marking a significant step forward in its mining endeavors in Western Australia.
Instant Summary:
- Pure Resources acquires Reedy Creek Garnet Project with no initial cost.
- Project located on a live mining license near essential infrastructure.
- Ore sorting yields 80% garnet in a single pass.
- Potential for a 93%+ garnet product in the 150-250 micron range.
- Plans for trial mining to meet Asian market demand.
Project Acquisition and Location
Pure Resources Limited has successfully exercised its option to acquire the Reedy Creek Garnet Project, situated 90 kilometers north of Halls Creek, Western Australia. This project is strategically located on a granted mining lease, M80/416, which spans 359.60 hectares and is valid until 2038. The project's proximity to the Great Northern Highway and the Wyndham port, approximately 280 kilometers by road, positions it advantageously for accessing Asian and global markets.
Ore Sorting and Product Quality
The Reedy Creek Project boasts a high-grade industrial garnet deposit with outcropping garnet showing grades up to 78% from the surface. Pure Resources has achieved impressive results through ore sorting, producing an end-product with 80% garnet content after just one pass. The highest quality garnet was found in the 150-250 micron fraction, ideal for the water jet cutting market, indicating potential for a 93%+ garnet product.
Strategic Development Plans
With the acquisition complete, Pure Resources is set to advance the project through feasibility and mining studies, aiming to become a leading garnet producer in Australia. The company plans to initiate trial mining to meet the rising demand in Asian markets. The Reedy Creek Project could become one of only three commercially viable hard-rock garnet mines globally, reflecting its significant potential in the industrial garnet sector.
The acquisition of the Reedy Creek Garnet Project positions Pure Resources as a potential leader in the garnet mining industry. The project's high-grade deposit and strategic location could significantly enhance the company's market presence and profitability. The anticipated high-quality garnet product is likely to attract interest from the water jet cutting market, further boosting demand and potentially increasing the company's stock value.
Investor Reaction:
Analysts are likely to view this acquisition positively, given the project's high-grade garnet deposit and strategic location. The potential for a 93%+ garnet product is expected to generate interest from industrial markets, particularly in Asia. Investors may respond favorably to Pure Resources' strategic expansion and its potential to become a key player in the garnet industry.
Conclusion:
Pure Resources' acquisition of the Reedy Creek Garnet Project marks a pivotal moment in its growth strategy. Investors should watch for further developments as the company progresses through feasibility studies and begins trial mining. This project could significantly enhance Pure Resources' position in the market and offer substantial returns for investors.