Element 25 Ltd (ASX:E25) is preparing a revised manganese mineral resource estimate after completing 6,672 metres of aircore drilling at the Butcherbird project in WA.
The estimate is expected to upgrade the planned starter pit at the project from the inferred and indicated categories to the indicated and measured status.
Element 25 is targeting 25% measured and 75% indicated resources which would serve the initial 20-year mine plan.
READ: Element 25 produces high-purity electrolytic manganese metal in initial tests on Butcherbird ore
This work would form the basis for a maiden reserve statement, which is expected to be published as part of the project’s pre-feasibility study (PFS).
The Butcherbird high-purity deposit is a world-class manganese resource with current JORC-compliant resources in excess of 180 million tonnes of manganese ore.
Positive scoping study
A positive scoping study was received in respect of developing the deposit to produce high-purity manganese sulphate for lithium-ion battery cathodes and Electrolytic Manganese Metal for use in certain specialty steels.
There were 210 aircore holes drilled in the infill program which was completed in the December quarter of 2018.
Broad shallow intersections
Broad and shallow intersections were returned, including 22 metres at 15.2% manganese from 6 metres.
Other strong results were:
- 23 metres at 11.56% from 6 metres; - 24 metres at 11.86% from 5 metres; - 28 metres at 11.95% from 2 metres; - 28 metres at 11.71% from 1-metre; - 25 metres at 11.96% from 0 metres; - 21 metres at 12.36% from 0 metres; - 20 metres at 13.09% from 2 metres; and - 23 metres at 12.9% from 0 metres.
Assay results and geological logging of the holes both compare favourably with existing drilling data in terms of geology as well as mineralised widths and grades of the ore zone.
This confirms the robustness of the company’s understanding of the Yanneri Ridge deposit.
Infill drilling collar locations in relation to Yanneri Ridge and Coodamudgi resources and infrastructure.
Element 25 has appointed IHC Robbins, part of the Royal IHC Group, to undertake the updated resource estimate for Yanneri Ridge.
READ: Element 25 on track to complete Butcherbird high-purity manganese PFS in 2019
This deposit is the target area for ore supply to the proposed high-purity manganese processing plant which is the subject of the PFS.
The company is working on the PFS, which is expected to further confirm the project’s commercial potential.
Butcherbird project, south of Newman, straddles the Great Northern Highway and Goldfields Gas Pipeline, providing turnkey logistics and energy solutions.
Element 25 also intends to integrate renewable energy into the power solution to minimise the carbon intensity and reduce energy costs.