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 hits manganese in first four holes at Otjozondu in Namibia
Shaw River Resources (ASX: SRR) has intersected multiple manganese horizons in all four initial diamond drill holes at its 75.5% owned Otjozondu Manganese Project in Namibia.
The 3,000 metre drilling program commenced on 31 May 2011, and has so far been successful in accordance with drill planning. Assay results are expected in the September 2011 quarter.
The program is designed to increase resources and underpin a Feasibility Study expected in the December Quarter 2011. First production is targeted for June 2012.
Diamond drilling for beneficiation test sampling is continuing and the company is planning for the arrival of two additional reverse circulation (RC) drill rigs on site in the coming weeks.
A Scoping study has indicated strong economics at Otjo from a proposed initial 250,000 tonnes per annum (tpa) operation from 2012 targeting rapid ramp-up to 500,000tpa.
The project will produce a high-grade, high quality product using simple beneficiation methods, and the manganese product grade is estimated at 38-40% manganese (Mn).
Favourable geology, shallow open-pittable mineralisation and the availability of existing infrastructure are expected to underpin low operating costs and attractive margins at Otjozondu, using conservative long term manganese pricing.
The current Pilbara Baramine drilling has intersected wide zones of manganese alteration in the Jose South Prospect, where An RC rig has completed 3,000 metres of RC drilling.
Baramine drilling is ongoing and a rig has been moved to the prospective Area 3. Surface interpretation at Area 3 has defined potential for extensive manganese mineralisation of the Woodie Woodie Style.
Previous drilling intercepts at Baramine include 18 metres at 21.4% Mn including 4 metres at 33.6% Mn from 86m and 15 metres at 17.2% Mn.
The company expects results from the drilling work in Namibia and the Pilbara in July along with updated interpretations of resource potential.
Shaw River is also finalising key management appointments to include chief financial officer, chief operating officer and chief metallurgist ahead of planned production in Namibia in 2012.
The appointments will ensure the delivery of the Otjozondu Project to production, and otherwise advance the company’s growth strategy in Manganese, and are due to start on 1 July 2011.
In addition, Shaw River said it has become aware of reports in the South African and Namibian media relating to claims that have been made by a third party against the owners of several of the vendors from which Shaw River purchased Otjozondu Holdings (Pty) Ltd in 2010.
The vendors have advised the company that the claims against them are baseless and will be vigorously defended. Shaw River said it will continue to monitor this matter.
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.
