Resource Development Group Limited (ASX: RDG) has announced a significant Mineral Resource estimate increase for its 100%-owned Lucky Bay Garnet Project (Lucky Bay), in the Mid- West region of Western Australia.
Highlights
RDG acquired Lucky Bay, formerly known as the Balline Garnet Project, in February 2021. Lucky Bay’s tenements, located between the coastal towns of Kalbarri and Port Gregory, are contiguous with the world’s largest supplier of high-quality alluvial garnet.
High-quality alluvial garnet products are used in the abrasive blasting and waterjet cutting markets. RDG intends to target coarse-grade markets in the first instance, that are undersupplied and potentially in deficit.
Since acquiring Lucky Bay, RDG’s focus has been on realising the full potential of the project through an immediate drilling programme with a view to delivering a comprehensive update of the existing Mineral Resource.
The results of the company’s drilling have confirmed the significant resource potential at Lucky Bay, with mineralisation remaining open to the north. The results of the drilling campaign have also confirmed the continuity of mineralisation that is typical of this style of deposit and identified several high- grade areas within the upgraded resource that will be the focus of future exploration and resource development.
Managing Director, Andrew Ellison, said this upgraded Mineral Resource will underpin RDG’s strategy to fast-track development of Lucky Bay, with first production targeted for early calendar year 2022.
This significant Mineral Resource upgrade is an outstanding result and confirms the upside potential we identified when RDG first evaluated the potential at Lucky Bay. With 86% of the Mineral Resource in the Measured and Indicated categories, we can proceed with project development studies with a high level of confidence,” he said.
“The next step is to confirm our mining schedule as part of the Lucky Bay development studies ahead of a fast-tracked construction process”
Following the acquisition of Lucky Bay earlier this year, RDG executed a drilling programme and laboratory analysis with the aim to upgrade and extend the project’s garnet Mineral Resource. Analysis of non-garnet heavy minerals at Lucky Bay remains ongoing, offering the potential to be a significant additional source of revenue for RDG.
Lucky Bay is located approximately 530km north of Perth and 35km south of Kalbarri. RDG’s wholly owned subsidiary Australian Garnet holds two granted mining leases covering 1,572 hectares and two Exploration Licences totalling 7,394ha, which combined make up the Lucky Bay project area. Lucky Bay comprises of the Menari and Menari North Heavy Minerals (HM) deposits.
The Lucky Bay project area is north of GMA Garnet Group’s existing garnet operation, which is the world’s largest supplier of high-quality alluvial garnet.