Pure Resources secures funding for acquisition of Reedy Creek high-grade garnet project
Pure Resources (ASX: PR1) has come out of a trading halt after announcing a capital raising to support the acquisition of a high-grade, hard rock garnet project in Western Australia.
The company has successfully raised $350,000 to acquire the Reedy Creek garnet project located 90 kilometres north of Halls Creek in WA’s far north.
The project consists of a live mining lease that covers an area of 360 hectares and has been granted until 2038.
Unique project
Executive chair Patric Glovac said the Reedy Creek project has the potential to be one of only three commercially-viable hard rock garnet mines in the world.
“We are excited to announce we have entered into an agreement to acquire the Reedy Creek garnet project, which represents a very unique, high-quality, hard rock garnet project with abundant outcropping garnet with grades up to 78% from surface,” Mr Glovac said.
“With the project being situated on a granted mining lease, we are confident of rapidly progressing the project through feasibility and mining studies.”
“With the low dilutive nature of the transaction, the company continues to assess acquisition opportunities with a focus on advanced copper, gold and rare earths and will also look to update the market on the further precious metal potential at its current WA gold projects.”
Well-located
The Reedy Creek project is located near critical infrastructure including the Great Northern Highway, while the Wyndham port is approximately 280km away by road.
Historical drilling and mapping have identified multiple lenses of garnet of variable thickness hosted within a thick marble horizon.
Although mapped over a strike extent of 1.1km, the bulk of the historical exploration has only been completed in the north-eastern portion of the tenement where 57 drill holes for 1,373m have been completed targeting the outcropping garnet lenses.
While drilling has been sporadic and only completed down to 40m vertical depth, significant potential has been identified.
Due diligence
Exploration to date has identified that the project is dominated by andradite garnet, a high-quality raw material for industrial applications.
As part of its due diligence, the company’s geologists will be undertaking an additional field trip in the coming weeks to complete further mapping and sampling and to prepare for drilling to be completed in Q4 2024.
Samples collected will be sent for further characterisation and met test work, while the aim of the drilling will be to deliver a maiden resource for the project.
Garnet market
Garnet is highly sought to meet the increasing needs of water filtration required for potable water, reverse osmosis plants, aquafarming and reticulated irrigation.
Industrial garnet is also widely used for high-precision jet cutting and abrasive blasting.
The Australian industrial garnet market is expected to grow at a compound annual growth rate (CAGR) of 5.0% between 2024 and 2032.
The global industrial garnet market was valued at $830 million in 2022 and is projected to reach $1.3 billion by 2030.