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GWR Group (ASX:GWR) initiates desktop study for WA iron ore project

Materials
ASX:GWR      MCAP $35.33M
19 July 2021 12:40 (AEST)

Source: GWR Group

GWR Group (GWR) has engaged study manager, Paul Leidich, to conduct desktop studies for its Wiluna West Iron Ore Project (WWIOP) in Western Australia.

Mr Leidich specialises in logistics and materials and is therefore considered suitable to assess the project delivery components such as infrastructure, logistics and port options for exporting direct shipping ore (DSO) product on a sustained long term basis from the WWIOP.

If successful, this could provide GWR with the opportunity to exploit a large portion of its 131.1 million tonnes at 60 per cent DSO resource within the iron ore project.

GWR Group expects to mine iron ore at the WWIOP at an annual rate of seven million tonnes for a 10-year period.

The first stage of this study includes assessing the possibility to build a railroad or a private multi-user haul road to Leonora as well as a rail upgrade between Leonora and Kalgoorlie.

The study may offer a pathway and access through the Port of Esperance which is considered attractive given it’s linked by an existing standard gauge railroad from Leonora. It’s also able to accept vessels with a capacity of about 150,000 tonnes compared to the Port of Geraldton which is only up to 60,000 tonnes.

The second stage will include rail wagon unloading, port storage and ship loading solutions.

GWR Chairman Gary Lyons was pleased to have engaged Mr Leidich for the study.

“We believe defining new or improving upon existing infrastructure and port solutions is a positive move and a reflection of the confidence the board has in being able to define a long term route-to-market even through lower iron ore prices.”

Company shares were down 3.66 per cent and trading at 39.5 cents at 11:21 am AEST.

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