Pure Resources Secures Major Expansion of Reedy Creek Garnet Project
PR1 (PR1) Share Update October 2024 Friday 25th
Pure Resources Expands Reedy Creek Garnet Project with New Acquisition
Pure Resources Limited (ASX: PR1) has announced a significant expansion of its Reedy Creek Garnet Project in Western Australia, following the acquisition of an option to purchase the project.
Instant Summary:
- Secured option to acquire Reedy Creek Garnet Project.
- Identified a 4.5km skarn strike extension, expanding potential to 5.6km.
- Completed capital raising of $490,543 to fund project development.
- Initiated trial mining and ore-sorting studies.
Project Expansion
Pure Resources Limited has secured an option to acquire the Reedy Creek Garnet Project, a high-grade industrial garnet deposit located in northeast Western Australia. The project is situated on a live mining license, M80/416, which is granted until 2038. This strategic acquisition places Pure Resources in a strong position to capitalize on the growing demand for garnet in abrasive industries and water filtration systems.
Exploration Success
During a recent site visit, Pure Resources identified an untested 4.5km skarn strike extension, significantly expanding the project's potential from 1.1km to 5.6km overall strike. This extension lies within the existing mining lease, offering substantial opportunities for resource growth. The company has commenced trial mining and ore-sorting studies to monetize the asset, utilizing state-of-the-art technology.
Financial Position
To support the development of the Reedy Creek Project, Pure Resources successfully completed a private placement and entitlement issue, raising a total of $490,543. This capital injection strengthens the company's financial position, enabling continued advancement of the project, including bulk sampling, resource definition, and a positive scoping study.
Future Prospects
Looking ahead, Pure Resources plans to conduct detailed metallurgical testing on the garnet and high-purity marble host rock. The potential extraction of high-purity calcium carbonate offers a unique opportunity to diversify product offerings and enhance the project's economics. With the exclusive option agreement in place, the company is focused on thorough due diligence to assess the project's long-term value for shareholders.
The acquisition and expansion of the Reedy Creek Garnet Project are expected to positively impact Pure Resources' stock, as the project offers significant growth potential and diversification opportunities. The successful capital raising further strengthens the company's financial position, supporting ongoing project development and investor confidence.
Investor Reaction:
Analysts are likely to view the expansion of the Reedy Creek Project favorably, given the project's potential scale and quality. The identification of additional high-grade garnet lenses and the potential for calcium carbonate extraction are seen as positive developments that could enhance shareholder value.
Conclusion:
Investors should keep a close eye on the progress of the Reedy Creek Project, as Pure Resources continues to advance its exploration and development activities. The company's strategic focus on high-quality assets and prudent capital management positions it well for future growth and value creation.