GWR : Wiluna West Gold Resource Increase

15 August 2019

ASX Announcement

WILUNA WEST GOLD PROJECT INCREASES

MINERAL RESOURCES ESTIMATE BY 13.5%

Highlights

• Combined Mineral Resource Estimate for the Wiluna West Gold Project is now 4.2 million tonnes at 2.2 g/t for 289,000 oz, representing an increase of 34,500 oz or 13.5%
• Mineral Resource Estimates were updated for Golden Monarch, Eagle and Emu and a maiden Mineral Resource Estimate was completed for Joyners Find
• The Emu deposit yielded the largest increase - up by 11,300 oz or approximately 40%, with the deposit open along strike
• The JORC 2012 Measured and Indicated Resources total 520,000 tonnes at 2.3 g/t for 43,000 oz
• Resource definition drilling at Golden Monarch is now complete, with a clearing permit recently approved by DMIRS. A Mining Proposal is currently being assessed by DMIRS and the preparation of the Project Management Plan is well advanced and will be submitted in the short term
• Negotiations are well advanced for finalising the Joint Venture Agreement with Blackham Resources Limited (ASX: BLK) for potential mining and milling of Wiluna West Gold deposits at BLK's Matilda Gold project located only 40 km to north east

GWR Group Limited (ASX: GWR) ("GWR" or "the Company") is pleased to announce an updated Mineral Resource Estimate (MRE) for the Wiluna West Gold project. The combined JORC 2004 and 2012 MRE is now 4.2 million tonnes at 2.2 g/t for 289,000 oz of gold, representing an increase of 34,500 oz on the previous estimate. (refer to June Quarter Activities Report - ASX 30 July 2019).

The updated MRE was prepared by resource consultants Optiro on behalf of GWR. The Eagle, Emu and Golden Monarch deposits (Figures, 3, 4 and 5) are updates based upon additional drilling and Joyners Find represents a maiden MRE (refer to ASX announcement 15th January 2019). The updated MRE's have been reported in accordance with the JORC code (2012 edition) and are summarised in Table 1. As there has been no additional drilling undertaken at the remaining prospect areas, these remain reported in accordance with JORC 2004. GWR confirms there has been no material change to technical assumptions since the JORC 2004 MRE's were last reported. Appendix 1 provides JORC 2012 Table 1 details.

The Wiluna West Gold project is located 40km south west of Blackham Resources ("Blackham") (ASX:BLK) Wiluna Gold Operation and processing plant. In November 2018, GWR entered into a Binding Heads of Agreement ("HoA") with BLK for the potential mining and processing of gold deposits from the Wiluna West Gold project (refer to ASX announcement 23rd November 2018).

Under the terms of the HOA with BLK, GWR is responsible for developing gold deposits to an Indicated Resource status as defined by the JORC 2012 Code and undertaking sighter metallurgical testwork at which point GWR may introduce a deposit as a Proposed Qualifying Deposit. This updated MRE has been undertaken to advance deposits to this level, in particular the Golden Monarch Deposit.

The joint venture will be a 65% (BLK) and 35% (GWR) arrangement on both costs and on the gold produced. Initial focus will be on Golden Monarch and Emu / Eagle deposits. The HoA aims to provide not only a processing solution at the Wiluna West Gold Project but will prompt further investment in exploration on the tenements, with the objective of developing a longer term project.

The project will mark another step in GWR's monetisation strategy which has recently seen the execution of a Term Sheet for a Mining Rights Agreement on the sale of iron ore from GWR's Wiluna West Iron Ore Project and a Joint Venture and Farm-in Agreement for its Hatches Creek Tungsten Project.

Wiluna West Gold Project

There is no further drilling planned at the Golden Monarch deposit. A Clearing Permit was recently granted by DMIRS; a Mining Proposal has been lodged and is currently being assessed and the preparation of the Project Management Plan is well advanced and will be submitted in the short term. All other approvals are complete.

Figure 1: Wiluna West Project location plan

Infill and extensional drilling is planned for the Eagle and Emu deposits and a Program of Works ("POW") was recently approved by DMIRS. This drilling will enable these deposits to be assessed as Proposed Qualifying Deposits under the HoA with BLK.

Updated Mineral Resource Estimate

Table 1 - Wiluna West Gold Project

JORC 2004 and JORC 2012 Gold Resources

	JORC Status		Prospect	Resource	Tonnes	Grade	Ounces
		Type	(g/t Au)
				Measured	30,000	3.0	3,000
			Golden
			Indicated	380,000	2.1	30,000
			Monarch
			Inferred	390,000	2.1	30,000
				Sub Total	800,000	2.2	55,000
	JORC2012		Indicated	110,000	2.8	10,000
	Eagle	Inferred	680,000	1.6	35,000
	at 0.5 g/t cut off
		Sub Total	790,000	1.8	45,000
	(Optiro August
2019)		Emu	Inferred	600,000	2.2	40,000
			Joyners Find	Inferred	90,000	2.6	10,000
				Measured	30,000	3.0	3,000
			Total	Indicated	490,000	2.3	40,000
			Inferred	1,760,000	1.9	110,000
				Sub Total	2,280,000	2.0	153,000
			Bottom Camp	Inferred	329,000	2.0	21,100
			Bowerbird	Inferred	169,000	3.1	17,000
			Bronzewing	Inferred	104,000	2.4	8,000
	JORC2004	Brilliant	Inferred	342,000	2.5	27,900
	Wren	Inferred	61,000	2.5	4,800
	at 1.0 g/t cut off
	Comedy King	Inferred	183,000	1.8	10,800
	(CSA June 2010)
			Goldfinch	Inferred	80,000	1.4	3,600
			Iron King	Inferred	481,000	2.3	35,600
			Iron Hawk	Inferred	138,000	1.5	6,800
				Sub Total	1,887,000	2.2	135,600
	TOTAL JORC2004 & JORC2012	4,167,000	2.2	289,000

Notes

Differences may occur due to rounding. For the Mineral Resource compiled in accordance with the JORC 2004 Code refer to ASX announcement 14th June 2010. The Mineral Resource Estimates shown as JORC 2004 compliant were first prepared and disclosed under JORC 2004 and have not been updated to comply with JORC 2012 on the basis that the information has not materially changed since they were last reported.

Figure 2: Wiluna West Gold Project prospect location plan

Figure 3: Wiluna West Gold Project - Emu Prospect