Pure Resources Teams with SSH to Fast-Track Reedy Creek Garnet Project

Strategic Alliance to Accelerate Development

Pure Resources Limited (ASX: PR1) has taken a significant step forward in advancing its Reedy Creek Garnet Project by entering into a non-binding Heads of Agreement with SSH Group Ltd (ASX: SSH). This strategic alliance aims to leverage SSH’s operational expertise and resources to accelerate the project’s development timeline and enhance execution capacity.

Under the agreement, SSH will initially provide internal resources to assist Pure in progressing towards a Final Investment Decision (FID) for Reedy Creek. Following the FID, the parties will enter an exclusive negotiation period to establish a life-of-mine alliance-style operations contract, subject to mutual agreement.

Promising Metallurgical Test Results

Pure Resources has reported encouraging outcomes from preliminary metallurgical test work conducted on approximately 200 kilograms of garnetiferous material from the Reedy Creek deposit. These tests, directed by SB Process Consultants and undertaken at Nagrom in Perth, demonstrated the potential to produce high-grade garnet concentrates using conventional, low-cost processing methods.

Building on this success, the company fast-tracked a second phase of metallurgical testing involving a larger 3-tonne sample. This phase aims to refine processing methodologies and generate a range of commercially viable garnet products. Samples from this testing will be distributed to buyers in established markets across Australia, the USA, and Asia, signaling Pure’s intent to position Reedy Creek garnet competitively on the global stage.

Geological and Exploration Advances

The Reedy Creek Garnet Project is situated 90 kilometres north of Halls Creek, Western Australia, within a granted mining lease (M80/416) valid until 2038. The deposit features a 3.3-kilometre strike length of garnetiferous skarn outcropping, with exploration results indicating significant widths and grades of garnet mineralisation. Historical drilling has intersected garnet grades up to 78%, with mineralisation remaining open at depth and along strike.

Recent petrographic studies have confirmed garnet concentrations ranging from 20% to 90% in various zones, reinforcing the deposit’s high-grade potential. The exploration team has identified structural features such as a major cross-cutting fault that displaces the garnet trend, suggesting further exploration upside in adjacent areas.

Financial Position and Outlook

As of 31 March 2025, Pure Resources reported a cash balance of $713,000 with no debt, reflecting a modest but stable financial position. The company spent $260,000 on exploration and evaluation activities during the quarter, focusing primarily on Reedy Creek. No development or production expenditures were recorded in this period.

Looking ahead, Pure plans to prepare and execute exploration programs across its portfolio, aiming to unlock additional value from its battery metals and industrial minerals assets. The strategic alliance with SSH is expected to be a catalyst for advancing Reedy Creek towards commercial production, potentially transforming Pure’s industrial minerals footprint.

Executive Chairman Patric Glovac emphasised the importance of the partnership, stating that collaboration with SSH enhances Pure’s operational capabilities and positions the company strongly for long-term success in the garnet market.