Shaw River Manganese (ASX: SRR), formerly Shaw River Resources, is a manganese company with a pipeline of manganese projects. Shaw River’s exploration is targeted at high-grade manganese deposits highlighted by the recent acquisition of the Otjozondu Manganese Project (Otjo) in Namibia.
First production from Otjo is expected in 2012. Projects at Baramine, Pilbara and Butre, Ghana are advancing with drill programs underway or completed.
Shaw River Resources moving closer to establishing major manganese resource at Baramine
Shaw River Resources (ASX: SRR) is taking significant strides toward its goal of establishing a manganese resource at its Baramine Project in the Pilbara region of Western Australia with 45.8% Manganese discovered at Baramine and Direct Shipping Ore (DSO) potential confirmed.
Drilling at the latest discovery at Area 5 returned a grading up to 45.8 per cent manganese while at the Area 3 prospect additional drilling returned grades of up to 27.7 per cent over 5m, further extending the extensive mineralised zone.
Vincent Algar, managing director, said the latest results provided more evidence that Baramine contained the thickness and grade of mineralisation typical of that seen at a number of Woodie Woodie deposits.
“This program has given us yet more confidence to drive exploration aggressively towards establishing a resource estimate and pursuing development at Baramine,” Algar said.
The drilling was part of an extensive exploration campaign at Baramine, which is 70% owned by Shaw River.
Baramine is 80km north-west of the world-class Woodie Woodie manganese mine. Shaw River is targeting manganese mineralisation similar to that at WoodieWoodie.
The new discovery at the Area 5 Prospect has significant width and grades in BRC 250 containing 14m at 21% Mn from surface, including 3m at 35% Mn from 11m.
The interval from 12m to 13m returned the highest grade received to date in the project of 45.8% Mn.
The zone of intense manganese mineralisation in BRC250 is associated with a major mapped fault which geologists have traced over 2 km.
In area 3 mineralisation hole BRC248 contains two zones of mineralisation of 5m @ 10% Mn from 29m, and 15m @ 17.2% Mn from 57m, including 5m @27.6% Mn from 57m.
Hole BRC246 contains 2m @ 27.1% Mn from 40m, and BRC247 containing 5m @ 15.5% Mn from 46m.
Hole BRC239 has returned significant results including 10m @ 16.6% Mn from 26m, including 3m @ 27.7% Mn from 28m.
Geological interpretation indicates the mineralisation in holes BRC246, BRC247 and BRC248 are part of a zone which extends over a combined strike length of greater than 500m and open in three directions.
Shaw River is currently processing a number of beneficiation samples, with results expected in November.
These results will be combined with an initial scoping study during the December and March Quarters to clarify economic parameters for a potential operation at Baramine.
Exploration will include follow up geophysics focused in Area 3 in 2010, diamond drilling and a 15,000m RC drilling program commencing after the Pilbara wet season early in 2011.
Shaw River is seeking to define large-scale manganese resources at Baramine to pave the way for a long-life mining operation.
Activity over the coming months will focus on delivering this outcome, which is expected to provide investors with regular newsflow including final drilling results and an updated exploration targets expected in November 2010.
Beneficiation test results from RC holes in Area 3, Nells, Area 4 and Area 5 are expected in November 2010 and will assist with orebody modelling and economic product studies.
Exploration planning will be completed with the aim of converting Shaw River’s Baramine Project exploration target on key prospects to Mineral Resources in 2011.
Results of beneficiation testing will be followed up during the coming months with a 1,000 metre diamond drilling program to determine beneficiation parameters and product characteristics.
15,000m of RC drilling is being planned to commence in early 2011 along with and heritage, environmental and mining application processes and economic studies will commence in the current quarter.
Shaw River has determined an initial exploration target at Baramine of between 10 million tonnes and 15 million tonnes of manganese ore in-situ grading between 18 % Mn and 25% Mn.
Shaw River offers excellent exposure to manganese, critical to the global steel industry.
This strategic metal offers investors the benefits of a high unit sale price, strong global demand and low capital and time costs for the development of feasible projects.
Shaw River’s largest shareholder, Atlas Iron (45.4%) (ASX: AGO), is a strong supporter of Shaw River’s manganese strategy.
SRR has a market capitalisation of A$33.73 million and had A$2 million cash at the end of the September quarter.
