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Shaw River Manganese backed by major shareholder with A$2m loan to expand Otjozondu Resource

Published: 08:26 14 Jun 2012 BST

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Shaw River Manganese (ASX: SRR) has received a vote of confidence in its Otjozondu Manganese Project in Namibia with major shareholder Atlas Iron (ASX: AGO) providing an unsecured A$2 million loan facility to fund continued exploration at the project.

Atlas Iron holds 45.4% of Shaw River and is a strong supporter of the company’s manganese strategy.

Shaw River is targeting an increase in the current Resource base at the Otjozondu Project, kicking off an extensive 11,000 metre reverse circulation drilling program in late April.

The company plans to continue drilling on the project to convert the 30-50 million tonne at 23-27% manganese exploration target to a JORC Resource.

Earlier this year, the company upgraded the Otjozondu Resource by 60% to 10.7 million tonnes at 22.2% manganese, which importantly includes the higher confidence maiden Indicated Resources of 3.8 million tonnes.

A Feasibility Study is continuing and targeting production of up to 500,000 tonnes per annum of final product. The study is forecast to be delivered to the market in the September quarter of 2012, with the deadline extended due to evaluating the potential of a larger operation.

Shaw River is on track to complete its current drilling program by the December quarter of 2012, with around 37% of the program complete and first assays expected in July.

The company is testing both the extensions to known mineral resources and new areas of mineralisation, with an increase in resource expected to underpin project and development studies.

Drilling to test for extensions of previous reported mineral resources has now been completed at Ouparakane and North Bosrand.

Four new areas, Labusrus S bend, Kopje, North Bosrand (East) and Weltefrede have also been drilled.

To date, 68 angled reverse circulation drill holes have been completed for a total of 4,048 metres.

Onsite geologists have logged visual manganese intersections, similar in nature to those previously reported from intersections in the manganese mineral resources, in the reverse circulation chips, in 47 of the 68 holes drilled to date.


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Shaw River Resources One2One Investor Presentation 2 Mar 2011

Vincent Algar of Shaw River Resources updates investors at the Proactive Investors One2One forum: "Emerging Stars in Resources 2011 Series" on 2 March 2011

on 3/3/11