GWR Group Limited has executed a non-binding Memorandum of Understanding (MoU) with Blackham Resources with respect to the Wiluna West Gold Project.
Owned and operated by Blackham, the Wiluna West Gold Project contains JORC (2004) compliant Mineral Resources of 3,478,000 tonnes at 2.3 g/t for an estimated 258,200oz Au (estimated at a 1 g/t lower off), including an Indicated Resources estimate of 46,000 tonnes at 3.5 g/t Au for 5,200oz and an Inferred Resource estimate of 3,432,000 tonnes at 2.3 g/t Au for 253,000oz.
GWR said the MoU sets the framework for the two companies to delineate, study and mine gold deposits at Wiluna West and process at Blackham’s 100% owned Wiluna Gold Plant.
“Under the MoU, GWR will be responsible for drilling the gold deposits to our JORC (2012) compliant level with a minimum indicated category. GWR will also be responsible for initial sighter metallurgical testwork associated with the deposits,” the company told the ASX.
“Following resource definition and initial metallurgical testwork, GWR may propose the deposit to Blackham as a Proposed Qualifying Deposit. Blackham will then undertake a Feasibility Study (to a minimum Pre-Feasibility Study level) to determine the economic potential of the project.”
The terms of the MoU also state that upon completion of a positive Feasibility Study for a Qualifying Deposit, Blackham will be entitled to make an offer to GWR that schedules the mining and processing of ore from the Qualifying Deposit.
“Blackham will be responsible managing the mining, transport and processing of ore from a Qualifying Deposits unless it elects to purchase ore from GWR delivered to the Wiluna Gold Plant ROM,” reads the ASX statement.
“If mining does occur, Blackham will pay GWR either its profit share or ore sales proceeds on a monthly basis.”
GWR’s CEO Craig Ferrier described the MoU with Blackham as “an important step” in potentially monetising the Project.
“The commencement of operations by Blackham and their willingness to enter into the MoU provides a significant opportunity for GWR,” he added.
“The current size of the Wiluna West gold deposits does not justify the construction of a standalone processing plant, however access to the Wiluna Gold Project provides GWR with a low capital option for development and the opportunity to realise value for shareholders.”