www.grooteresources.com.au
Groote Resources Limited is a Perth-based exploration company which continues to actively search for new projects, both within Australia and offshore. Currently the company has two main projects, the Groote Eylandt Manganese project and the Mt Alexander Uranium Project.
Groote Resources holds exploration rights for six tenements covering 1,723 km2 of shallow marine terrain and two islands near Groote Eylandt in the Northern Territory of Australia. These tenements are located immediately adjacent to and contain the interpreted extensions of the world-class manganese deposits at Groote Eylandt.
The EL comprises 8,877 hectares of prospective ground in the Ashburton Mineral Field of Western Australia, approximately 10km south of Nanutarra. An assessment of this work has identified a number of conceptual uranium and basemetal targets and an exploration program is currently being produced by the team at Groote resources.
Groote Resources receives landmark manganese exploration licenses approval
Perth-based manganese explorer, Groote Resources (ASX: GOT) has gifted investors with the news worth waiting for - the granting of the Groote Eylandt exploration licenses in the Northern Territory.
Groote will come out of a trading halt with the announcement this morning.
The prospective exploration licences contain the interpreted extensions of proven high-grade manganese resources owned by Groote Eylandt Mining Company Ltd (GEMCO). The tenements under application are along strike from GEMCO’s manganese reserves, where the geology is well understood and manganese is being mined.
The OELAs and Authorisations comprise 15,439 km2 of prospective tenure, immediately to the south and southwest of Groote Eylandt, one of the world’s largest high-grade manganese deposits.
GEMCO (BHP Billiton 60%/Anglo American Corp 40%) operates one of the largest high-grade Mn mines in the world. The mine has produced 50Mt of ore since 1965, has total reserves of 114Mt at 46.7% Mn with a 14 year mine life (3-4Mtpa DSO operation – lump and fine) and currently produces more than 15% of the world’s high-grade manganese ore.
The broad coastal plain bordering the licences under application is known to contain numerous manganese occurrences in geological settings very similar to that found on Groote Eylandt. Two of these sites (Rosie Creek and Battern Creek) are currently the focus of intense exploration activity by other companies.
With this box ticked, Groote can get moving to the next stage and is now commencing an intensive six month exploration program, comprising a three- week non-invasive geophysical survey to generate drill targets (late August) followed by an initial three-month drilling program starting in October.
The company said it is on target with the exploration program to delineate an initial JORC resource by early 2011.
Simon Noon, executive director, said that the granting of these licences, located alongside one of the world’s largest and most profitable manganese mines, represented a very significant milestone for the company.
He stressed that Groote Resources is now moving into an exciting phase of discovery that would result in the establishment of a major new force in the delivery of a range of high grade manganese products for the rapidly expanding Asian market.
Groote is targeting 45-60Mt of manganese ore grading 35-50%Mn. These tonnage and grade estimates are based on comparison with the well documented manganese ore deposit presently being mined on the adjacent mining lease operated by GEMCO.
Should the company achieve this target, Groote Resources would aim to become one of the world’s largest high grade manganese producers.
If ever there was a key inflexion point and rallying point for valuation uplift, the tenement grants provide the springboard.
