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Element 25 starts pre-commissioning at Butcherbird Manganese Project with completion on track for this quarter

Published: 09:03 04 Mar 2021 AEDT

Element 25 Ltd - Element 25 starts pre-commissioning activities at the Butcherbird Manganese Project with completion on track for first quarter of 2021
Manganese is emerging as an increasingly important ingredient for EV batteries

Element 25 Ltd (ASX:E25) (FRA:QFP) has confirmed delivery of the first stage of a planned multi-stage development at its 100%-owned world-class Butcherbird Manganese Project in WA, with completion on track and in line with the original target of the first quarter of 2021.

Pre-commissioning activities have started on schedule with electrical systems and instrument loop checking underway utilising temporary power. 

Sequential rotational checking of drives is expected to begin today while the power station is due to arrive at site today, with installation and power-up scheduled for later in the week. 

This is the first stage of a multi-stage development strategy for the project, which will be expanded to produce high purity manganese sulphate monohydrate (HPMSM) for electric vehicle (EV) batteries to power the global transition away from fossil fuel-powered mobility.

Important ingredient for EV batteries

Manganese is emerging as an increasingly important ingredient for EV batteries.

Potential supply constraints for nickel and cobalt are forcing battery manufacturers to look to high manganese cathodes to produce the vast amount of cathode material required by the EV industry in the coming years.

E25's share price and market capitalisation growth in the past 12 months reflect the quality of the Butcherbird project along with the important role of manganese in a cleaner and greener global future.

Market capitalisation sits at approximately $252.7 million while the share price stands at $1.92 after hitting a new high of $2 this week - a considerable climb from 11.5 cents almost one year ago.

Butcherbird to meet this demand

The project is ideally placed to feed the potential demand, with advanced flowsheet development work undertaken in 2019 and 2020 confirming a simple, unique, ambient temperature and atmospheric pressure leach process for E25 ores which, when combined with offsets, will target the world’s first Zero Carbon Manganese for EV cathode manufacture.

The Butcherbird Manganese Project is a world-class manganese resource with current JORC resources in excess of 263 million tonnes of manganese ore.

E25 completed a pre-feasibility study (PFS) on developing the deposit to produce manganese concentrate for export to generate early cash flow with a modest capital requirement.

The outstanding economics and low capital hurdle of less than A$17 million for the first stage of development will allow the company to develop the project in a relatively short timeframe.

Expedite project expansion

Delivery of this first stage of production is fully funded and already underway.

The PFS also highlighted the project has the potential for significant growth beyond the initial stage 1 production volumes (the studies examined the potential for a 2X and 3X expansion to Stage 1 within 12 months of initial commissioning.

E25 expects to expedite the expansion of the project once Stage 1 is fully operational.

R&D into HPMSM and HPEMM production

In addition to the concentrate export business, the company has completed extensive research & development and laboratory test-work into the production of high purity manganese products including battery-grade manganese sulphate (HPMSM) and high purity electrolytic manganese metal (HPEMM).

The work has highlighted that the Butcherbird ores are highly amenable to an ambient temperature, atmospheric pressure leach process, resulting in a very efficient extraction of the manganese into solution, the key requirement for the cost-effective and sustainable production of HPMSM and HPEMM.

Integrate renewable energy

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

The company plans to integrate renewable energy into the power solution over time to target a zero-carbon footprint for the project, which is expected to also reduce energy costs.

A cleaner, lower carbon flowsheet and high penetration renewable energy will place Butcherbird at the forefront of sustainable high purity manganese production.

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