Bryah Resources Ltd (ASX:BYH) has exercised options to acquire the historical Horseshoe South Manganese Mine along with rights to prospect, explore, mine and develop manganese ore over a further 154 square kilometres within the Bryah Basin in central Western Australia.
The company has completed the purchase for total consideration of $340,000, being a cash payment of $170,000 and the issue of ordinary shares to the value of $170,000.
A total of 2,615,385 new shares have been issued to the vendor, Peak Hill Manganese Pty at 6.5 cents per share.
The Horseshoe South Manganese Mine and the manganese rights area are part of the broader Bryah Basin Manganese Project and are subject to a $7.3 million agreement between Bryah and OM Holdings Limited (ASX:OMH).
Bryah managing director Neil Marston said: “Completing the purchase of the historical Horseshoe South mine provides Bryah with a granted mining lease in a very central location within our Bryah Basin Manganese Project area.
“With significant funding secured through our recently completed farm-in and JV agreement with OM Holdings, we look forward to the start of drilling at Horseshoe South and other prospective exploration areas next month.”
Horseshoe South is the largest historical manganese mine in the region, having produced about 1 million tonnes of high-grade manganese ore from 1948-1969 and 2008-2011.
The Horseshoe Range area has been the main manganese producing region within the Bryah and Padbury basins with production dominated by the Horseshoe South Mine on M52/806 and a smaller satellite deposit at the Horseshoe North mine which is on E52/1860.
READ: Bryah Resources Ltd $7.3 million manganese farm in agreement a “game changer”, shares up
The first production period for these two deposits was from 1948 to 1969 when 490,000 tonnes of manganese ore was mined at a reported average grade of 42% manganese.
Between 2008 and 2011, Process Minerals International Pty Ltd (PMI) processed historical stockpiles and carried out open pit mining operations.
The stockpiles were processed using mobile screening equipment whilst a dense media separation (DMS) plant treated the mined ore.
More than 400,000 tonnes of manganese ore was produced and sold by PMI during these operations.
A 2018 sampling and mapping program over mining lease M52/806 and the manganese rights area identified significant manganese potential with rock chip samples grading up to 48.8% manganese being recorded.