Element 25 Ltd (ASX:E25) opened higher after being formally granted the mining lease M52/1074 for its Butcherbird Manganese Project by the Western Australian Department of Mines, Industry Regulation and Safety, paving the way for the formal lodgement of mining approval documentation.
The mining lease, which has been granted for 21 years, advances the company’s staged development strategy to generate early cashflows with a low capital requirement for stage-1.
This will be followed by expansion into downstream processing to produce high purity manganese.
Shares are almost 10% higher at 44.5 cents.
"Pivotal step"
Managing director Justin Brown said: “The grant of the mining lease at Butcherbird is a pivotal step in the development of this world-class project and puts the company in a position to fast-track the project towards commencement of production and cashflows.”
Several relevant approvals required to begin mining are well advanced and will be lodged within the coming weeks.
A pre-feasibility study (PFS) released in May 2020 demonstrated outstanding economics with respect to the production of manganese concentrate, confirming the potential for robust, long-life operations with strong operating margins.
Element 25 now intends to expedite project delivery and commence production as soon as practicable.
Renewable energy in power solution
The project straddles the Great Northern Highway and the Goldfields Gas Pipeline, providing turnkey logistics and energy solutions.
Element 25 is also intending to integrate renewable energy into the power solution to minimise the carbon intensity of the project as well as reducing energy costs.
The company believes a cleaner, lower carbon flowsheet and high penetration renewable energy will place Butcherbird at the forefront of sustainable metal production.