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Element 25 boosts Butcherbird manganese resource 34% to 26.3 million tonnes

The company aims to produce high-purity manganese sulphate for lithium-ion battery cathodes as well as electrolytic manganese metal for use in certain specialty steels.
Drilling at Butcherbird
Drilling at the Butcherbird project has resulted in a revised resource estimate

Element 25 Ltd (ASX:E25) has confirmed the world-class status of the Butcherbird High Purity Manganese Project in WA with a 34% increase in the manganese resource to 26.3 million tonnes.

A revised resource estimate has been prepared for four of the seven known manganese deposits at the project in the Pilbara region - Coodamudgie, Mundawindi, Richies and Yanneri Ridge.

Maiden reserve to be calculated

The Butcherbird resource now stands at 263 million tonnes at 10% manganese and this will underpin calculation of a maiden reserve as part of pre-feasibility study (PFS) work.

Shares are up almost 12% intra-day to 19 cents.

IHC Robbins Pty Ltd was engaged to assist with the geological modelling, resource estimation and JORC technical reporting.

The Yanneri Ridge resource has been upgraded to 105 million tonnes at 10.1% manganese, including 16 million tonnes at 11.6% in the measured category, 41 million indicated tonnes at 10% and 47% million inferred tonnes at 9.7%.

Electrolytic manganese metal flakes produced from test work.

READ: Element 25 completes PFS metallurgical drilling at Butcherbird Manganese Project

This work follows completion of an aircore drilling program in December 2018, which focused on Yanneri Ridge.

IHC Robbins coupled this with an improved approach to the geological interpretation, grade interpolation and a slightly lower cut-off grade than used for the previous estimate.

This reflects the increased metallurgical understanding gained since the last resource was published, with particular focus on the hydrometallurgical processing pathway developed in conjunction with CSIRO in 2017.

The updated estimate compares with the previous resources for the Butcherbird project of 181 million tonnes at 10.8% manganese for total contained metal of 19.5 million tonnes.

Further test work has shown that this material is suitable to be used as feedstock for the hydrometallurgical processing flowsheet in the PFS.

Many years of plant feed

Ore in the measured and indicated classifications is expected to provide sufficient material for the high purity manganese PFS base case.

The PFS is expected to confirm economics around the production of high-purity electrolytic manganese metal and battery-grade manganese sulphate.

READ: Element 25 secures $700,000 cash and royalty in non-core divestment

Butcherbird is about 1,065 kilometres northeast from Perth and 120 kilometres south from the township of Newman.

The project straddles the Great Northern Highway and the Goldfields Gas Pipeline,  providing turnkey logistics and energy solutions.

Element 25 intends to integrate renewable energy into the power solution to minimise the carbon intensity of the project as well as further reducing energy costs.

The company has completed a positive scoping study with respect to developing the project.

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