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 adds to extensive manganese exploration pipeline
Managanese-focussed explorer Shaw River Resources (ASX: SRR) has announced a strategic expansion of its Dingo Creek Project in the West Pilbara region of WA.
Dingo Creek lies immediately west of Aurora Mineral’s (ASX: ARM) Capricorn Manganese Project.
Shaw River has secured an exclusive six month option to enter into a joint venture with De Grey Mining Ltd (ASX: DEG) over its “Bangemall Manganese Project” which lies adjacent to Shaw River’s Dingo Creek Project.
De Grey Mining (ASX: DEG) completed reconnaissance sampling over the area in 2009, and reported rock chip samples grading up to 36.8% Mn.
Importantly, this agreement expands Shaw River’s footprint to over 138km of strike length within the Ullawarra Formation.
To the east of the Project, the same Ullawarra Formation hosts Aurora Mineral’s “Capricorn South East Manganese Project”, where high grade mineralization has been identified along a strike length of up to 95kms.
Shaw River will complete a helicopter assisted reconnaissance sampling program over the entire project area in March 2010.
To be followed by systematic sampling and mapping over the area in the 2nd and 3rd quarters of 2010. Drilling is targeted to commence late 2010.
Vincent Algar, Shaw River’s Managing Director said today, “Shaw River has expanded our existing Dingo Creek Manganese Project to over 138km of strike length of the prospective Ullawarra Formation."
"The project is well located, being close to the coastal infrastructure corridors, an important factor when evaluating any bulk commodity project. We look forward to rapidly defining drilltargets on the project over the coming months, with drilling targeted for the last quarter of 2010.”
Under the agreement between De Grey and Shaw River, key terms are as follows:
- Shaw River has paid $30,000 for a six month exclusive option to enter into a joint venture on the project for Ferrous Minerals (Iron and Manganese)
- On election to proceed with the JV, Shaw River can earn a 60% interest by spending $650,000 over
three years
- On its further election, going on to earn an 80% interest by spending an additional $650,000 over the following two years.
Vincent Algar said Shaw River’s 2010 exploration is underway with drilling completed at Butre (Ghana) and imminent at 701 Mile (Pilbara).
The company is building a significant manganese exploration presence, as it builds resources and progresses it projects toward production. Shaw River is currently exploring five Pilbara manganese projects. It also owns an 80% interest in the Ghanaian manganese project.
Shaw River’s largest shareholder is Atlas Iron (45.7%).
