Having spent $500,000 on drilling since May 2019, OM Manganese is now required to elect to commit to stage two and form a joint venture (JV) with Bryah Resources within two weeks.
Under stage one of the $7.3 million agreement signed in April 2019, OMM’s initial drilling program was extended to July 31, 2019, and has 30 days to proceed with the JV and pay an election fee of $250,000 to Bryah.
This will create the JV with OMM holding an initial 10% JV interest as well as providing $2 million to fund the next stage of exploration to earn a 51% JV interest by June 30, 2022.
The Bryah Basin is host to the high-grade copper-gold mines at DeGrussa, discovered by Sandfire Resources NL in 2009 and at Horseshoe Lights, which was mined until 1994.
It also has several historical and current manganese mines including the recently acquired Horseshoe South mine.
Earlier this month the company obtained assays from its second phase of drilling at its Black Hill and Black Caviar prospects within the flagship Bryah Basin Project.
Results from the batch of 16 holes featured 6 metres at 38.1% manganese at Black Hill and 4 metres at 32.9% manganese at Black Caviar.
The results follow the prior batch from the Brumby Creek prospects where drilling intersected 23 metres at 25.8% manganese from the surface.
The final batch of drilling results from the 83-hole program are pending for the Horseshoe South prospect and are expected shortly.
Bryah’s managing director Neil Marston said at the time: “These results demonstrate the growing potential for Bryah Resources to make additional manganese discoveries in the Bryah Basin, as it has about 60 kilometres of the manganiferous Horseshoe Formation under its control.”