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 commences drilling to boost manganese resources at Otjozondu in Namibia
Shaw River Resources (ASX: SRR) has commenced a 3,000 metre diamond drilling program at its 75.5% owned Otjozondu Manganese Project in Namibia to increase resources and underpin a Feasibility Study expected in the December Quarter 2011.
The company is planning two additional reverse circulation (RC) drill rigs and crews on site within weeks to begin an aggressive resources extension drill program of over 7,000 metres.
Shaw River expects first results from the program in July 2011 and a resource upgrade is anticipated in September 2011, with first production targeted for June 2012.
The JORC Inferred Resources currently stand at 6.8 million tonnes (Mt) at 23% mangenese (Mn) and the Project Exploration Target is 35Mt to 50Mt grading 23% Mn to 27% Mn.
The Feasibility Study is underway with experienced engineers GTI and a Scoping study has indicated strong economics from a proposed initial 250,000 tonnes per annum (tpa) operation from 2012, and the ability to generate short term cashflows.
The study is focused on production of a gravity-beneficiated manganese lump ore for export via the Port of Walvis Bay.
The company proposes to use a combination of existing road and rail infrastructure to transport ore 538km to the port where it will be loaded onto Handymax-sized vessels of up to 25,000 tonnes.
The project is targeting a ramp-up to 500,000tpa, producing a high-grade, high-quality product using simple beneficiation methods. The manganese product grade is estimated to be 38-40% Mn.
Shaw River holds exploration and mining licences over 1,700 square kilometres of covering 144km of the strike of the Otjozondu Manganese Field.
The resource extension and upgrade drilling program will consist of 1,000m of PQ diamond core drilling for beneficiation test purposes and ore characterisation on three Inferred Resource project areas within the current mining licence, Bosrand, Nth Bosrand and Labusrus.
A total of 2,000m of NQ diamond core drilling will be undertaken to improve resource quality within conceptual pit outlines and improve the resource delineation.
There will be 7,000m of RC drilling at Bosrand, Labusrus and North Bosrand prospects. All of these prospect areas host Inferred JORC resources and lie within a granted Mining Lease.
Ongoing RC drilling will then target strong brownfield prospects within the 5 granted EPLs, including the Uitkomst prospect.
Otjo is located 150km north-east of the Namibian capital of Windhoek and lies in a historical manganese field which has produced in aggregate about 550,000 tonnes of high grade (48%) manganese since the 1950’s.
Shaw River is planning the introduction of modern technology, mine planning practices and processing expertise at Otjo to allow production to re-commence in early 2012.
The company said favourable geology, shallow open-pittable mineralisation and the availability of existing infrastructure are expected to underpin low operating costs and attractive margins, using conservative long term manganese pricing.
On April 25 Shaw River launched a $25 million capital raising program which will assist the near term manganese production goal in 2012 in Namibia and boost exploration programs in the Pilbara and Ghana.
