Jindalee Ltd sells 70% stake in Tasmanian magnesium project to GWR Group

“We are pleased to have finalized the SPA for the advanced Prospect Ridge Magnesite project which will propel GWR into the ‘green sector’,” said GWR’s President.

Jindalee Resources Ltd (ASX: JRL) has signed a sale and purchase agreement (SPA) with GWR Group (ASX: GWR) Ltd to acquire a 70% interest in its advanced Prospect Ridge Magnesite project in the northwest Tasmania.

The acquisition initiates GWR’s entry into the ‘green’ sector, with magnesite being the primary ore of magnesium, the lightest structural metal known to man, being two thirds lighter than aluminium.

Going forward, the GWR geological team will conduct a site visit in mid-March and seek to engage with local geological and exploration teams, drilling contractors, metallurgists and the Port of Burnie, as well as state and federal governments.

Towards the “green sector”

GWR President Gary Lyons said, “We are delighted to have finalized the SPA for the advanced Prospect Ridge Magnesite project which will propel GWR into the ‘green sector’.

“With Western Australia’s borders open, the GWR team are delighted to be conducting a site visit in the coming weeks and beginning to engage with a host of services as well as the port of Bernie and the state and federal governments.

“In September 2021, the Australian Federal Government announced that it would establish a $2 billion fund to fund the production of critical minerals in Australia. Critical minerals were reported to include resources used in technologies such as cell phones, computer monitors, electric cars, and solar panels, such as lithium, magnesium, and nickel Magnesium has also been identified as one of the top 50 critical minerals by the United States.

Provisional plan

Desktop and transport studies will begin after the site visit and initial engagement with potential buying partners for a DSO product has already been initiated.

GWR will also focus its studies on a low-cost, zero-waste, high-quality and environmentally-friendly downstream process that will allow GWR to benefit from a value-added processed product, and has begun to identify the required technology.

Lyons adds: “I strongly believe that this project offers an excellent opportunity to enter the global ‘green’ magnesium market – we have entered into discussions for the European purchase of a DSO product which will enable GWR to apply our experience in extracting raw materials in bulk and in addition, we have started to identify technology partners to offer us the possibility of benefiting from downstream processing.

“I really look forward to updating shareholders on the progress of the Prospect Ridge project.”

About the project

The Prospect Ridge Magnesite Project area lies on an exploration license granted (EL5/2016), it is 11 kilometers long and 51 square kilometers encompassing two deposits, the Arthur River and Lyons River deposits containing the third largest large inventory of magnesite in Australia.

The project is located just 55 kilometers west and south west of Burnie Port, which is one of the state’s major deep water ports and Tasmania’s largest general cargo port. This allows GWR to use its expertise in the production of bulk raw materials to explore a low investment opportunity for the production and export of DSO magnesite.

The Jindalee Inferred Mineral Resource estimate at the Arthur River deposit returned 25 million tonnes of magnesite grading 42.4% MgO, 4.8% SiO2, 1.4% Fe2O3 and 2.6% CaO at a depth average of 100 meters below surface at a cut-off grade of 40% MgO.