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- GWR Group (GWR) has taken another step forward in the development of its JWD deposit, which is part of the Wiluna West Iron Ore Project in WA
- Fellow ASX-lister Fe (FEL) has been granted a work approval from the Department of Water and Environmental Regulation
- Last year, Fe bought a 51 per cent stake in the mining rights agreement held by Gold Valley over the JWD deposit
- As part of this deal, GWR Group has received $750,000 in quarterly payments and can expect the next payment before the end of this month
- The works approval will allow for the construction of the crushing and screening plant as well as other infrastructure
- GWR is up 1.92 per cent and shares are trading at 26.5 cents
- Fe is down 2.22 per cent and shares are trading at 4.4 cents
GWR Group (GWR) has taken another step forward in the development of its JWD deposit, which is part of the Wiluna West Iron Ore Project in WA.
Yesterday, fellow ASX-lister Fe (FEL) was granted a works approval from the Department of Water and Environmental Regulation for the JWD deposit.
The high-grade deposit has a JORC 2004 mineral resource of 10.7 million tonnes at 63.7 per cent iron, 2.8 per cent silicon dioxide and 1.5 per cent aluminium oxide.
In September last year, Fe entered a binding deal to buy a 51 per cent stake in the mining rights agreement held by Gold Valley over the GWR’s wholly owned JWD deposit.
As part of this agreement, GWR Group has received $750,000 in quarterly payments and can expect its next payment before the end of this month.
Additionally, another $4.25 million will be paid to GWR upon the exercise of the stage two option and if more than three million tonnes are mined and trucked at a flat rate royalty of $3.50 per tonne. A production royalty is also payable during both stages, and this rate will depend on the iron ore price.
The work approval means the crushing and screening plant, as well as associated infrastructure, can be constructed at the deposit.
Fe says the granting largely completes the permitting process for the JWD deposit and paves the way for a stream of milestones ahead of mining activities.
GWR is up 1.92 per cent and shares are trading at 26.5 cents at 2:03 pm AEDT.
Fe is down 2.22 per cent and shares are trading at 4.4 cents at 1:53 pm AEDT.
