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Bryah Resources begins drilling at Horseshoe South manganese mine, shares rise

Bryah has moved quickly to commence drilling following the signing of a $7.3 million manganese farm-in deal with OM Holdings.
Drill rig at Horseshoe South Mine
Drill rig at Horseshoe South Mine

Bryah Resources Ltd's (ASX:BYH) shares are trading about 8% higher intra-day after commencing its program of manganese drilling at the historical Horseshoe South manganese mine within the Bryah Basin in central Western Australia.

The company’s Bryah Basin Manganese Project is subject to the recently signed $7.3 million Manganese farm-in and joint venture agreement with a wholly owned subsidiary of OM Holdings Ltd (ASX:OMH).

READ: Bryah Resources Ltd $7.3 million manganese farm-in agreement a “game-changer”, shares up

OM has already paid Bryah a $250,000 signing fee and is providing $500,000 to Bryah to undertake a program of drilling at a number of high priority targets by June 30 2019.

Under the terms of the agreement, Bryah is the manager of the project until OM earns a 51% joint venture Interest.

The Bryah Basin Manganese Project includes the Horseshoe South mine, which is the largest historical manganese mine in the region.

Tenement location plan

The Horseshoe South mine has produced about 1 million tonnes of high-grade manganese ore from 1948-1969 and 2008-2011.

Notably, 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 and a smaller satellite deposit at the Horseshoe North Mine.

 

A 2018 sampling and mapping program over Mining Lease M52/806 and the adjoining area identified significant manganese potential with rock chip samples grading up to 48.8% manganese.

In addition, shallow drilling completed in 2011 on the neighbouring tenement to the south of M52/806 recorded an indicated resource of 437,000 tonnes at 19.6% manganese.

Stage 1 drilling is targeting immediately north of this resource with the drill rig presently on site.

Other high priority areas to be drilled during stage 1 are the Brumby Creek and Devils Hill prospects.

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