Manganese X Energy Corp (TSX-V:MN, OTCQB:MNXXF) has announced plans to commence a drilling program at its wholly-owned Battery Hill Project near Woodstock in New Brunswick in preparation for a pre-feasibility study (PFS) this fall.
The goal of the drill program is to in-fill and expand the measured and indicated mineral resource of the project by upgrading the inferred category included in the preliminary economic assessment (PEA) supporting the mine plan, the company said.
Tendering for the proposed program involving an estimated 25 diamond drill holes for a total of 3,500 meters is underway, with commencement tentatively scheduled for late October 2022, it added.
READ: Electric Royalties notes filing by Manganese X Energy Corp of PEA for Battery Hill manganese project in New Brunswick
The current mineral resources included in the PEA comprise 12.2 million tonnes in the Measured and Indicated categories and 4.7 million tonnes in the Inferred category.
The drilling program will also include a step-out component to target high-grade resources for inclusion in the PFS, Manganese X said.
"We are very excited to begin this drill program that will support our pre-feasibility study to demonstrate and highlight the robust potential of the Battery Hill deposit as indicated by the PEA,” Manganese X CEO Martin Kepman said in a statement.
“The completion of the in-fill drilling program this fall will allow the company to move quickly into the pre-feasibility stage in 2023. We intend to be at the forefront of a domestic Canadian high-purity manganese supply, readily available to North American battery manufacturers. Manganese X's objective is to become the first publicly-traded company in Canada and the US to commercialize high-purity electric vehicle (EV) quality compliant manganese,” he added.
The NI 43-101-compliant PEA of the Battery Hill Project highlights a robust project with:
- an after-tax Net Present Value using a 10% discount of $486 million;
- an Internal Rate of Return of 25% with a payback period of 2.8 years;
- average annual revenue of $220 million per year over the first seven years (averages $177 million per year over the 47-year mine life); and
- production averaging 84,000 tonnes per year of battery-grade high purity manganese sulphate over the first seven years (68,000 tonnes per year over the 47-year mine life).
Project assessment
In addition to the drilling program, Manganese X said it is undertaking scoping studies on the engineering, environmental and social aspects of the project to support the PFS work program.
Geotechnical and hydrogeological drilling is planned for open pit mine design and to advance the understanding of ground conditions in the proposed infrastructure sites.
In preparation for the geotechnical work, scheduled for the spring of 2023, site visits and fieldwork by the company's engineering consultants will be completed this fall, the company said.
Additional environmental baseline data will continue to be collected through 2022 and 2023, it added.
Manganese X's mission is to advance its Battery Hill Project into production, with the intent of supplying value-added materials to the lithium-ion battery and other alternative energy industries. The company is also striving to achieve new environmentally-friendly and efficient methodologies, while processing manganese at a lower competitive cost.
The company is the only publicly-traded manganese company in North America moving rapidly toward commercialization of a manganese deposit and production of high purity manganese sulphate.
Its subsidiary Disruptive Battery Corp is developing a heating, ventilation and air conditioning (HVAC) air purification delivery system for cleaner and healthier air.
Contact the author at jon.hopkins@proactiveinvestors.com