Bryah Resources managing director Neil Marston said: “The execution ofthis  agreement  with the highly-regarded OMH Group is a game-changing event for Bryah and its shareholders. The OMH Group has manganese mining expertise and is seeking new sources of manganese ore to replace its Bootu Creek production in the near future.”

Under  the  agreement  OM  can  spend  $3  million  including  cash  payments  to  Bryah totaling $500,000, to earn a 51%  interest in  the manganese  mineral  rights  over  a  660sqkm  area.  At Bryah’s elections, OM can increase its interest to 70% by spending a further $4.3 million.

On the strength of the OM deal, Bryah has also exercised its exclusive purchase of the historic Horseshoe South  Manganese  Mine  and  the  manganese  rights over  a further154km2 of adjoining ground, all of which are subject to the manganese deal with OM Holdings.

Horseshoe Formation: Manganese

Manganese occurrences in the Bryah Basin generally lie within the Horseshoe Formation. Bryah has secured tenure or manganese mineral rights over approximately 60 line-kilometres of this linear  feature. The  identification  of numerous high-grade  manganese  outcrops last  yearby Bryah is  considered  significant  as  it  demonstrates  that  the  Horseshoe  Formation,from  the prospects of Mudderwearie/Devils Hill in the south through to Mount Labouchere in the north,is prospective for manganese mineralisation.

Former Horseshoe South Manganese Mine

The Horseshoe South mine has  produced approximately  1  million  tonnes of  high-grade manganese ore from 1948-1969 and 2008-2011. The mine lies on a granted mining lease which means that it should  be straightforward re-starting mining  operations. Shallow   drilling completed  in  2011  on  the  neighbouring  tenement  to  the  south of the  mining  lease has recorded an Indicated Mineral Resource of 437,000 tonnes @ 19.6% Mn. Drilling is planned to test for extensions of this mineral resource and other outcropping areas on the lease.

Manganese Outlook

“The prices  of  manganese  ore  remained robust  throughout2018and  the global  outlook  for manganese remains  positive, as it is a critical and irreplaceable element in steel production,” said Mr Marston.

Manganese is the 4th most consumed metal behind iron, aluminium and copper.Manganese is also used in batteries, chemicals and the aluminium industry. The  demand  for  manganese  for use  in  new  generation  batteries  for  Electric  Vehicles  (EV)  is  expected  to  grow  significantly  as the uptake of EVs increases.

Source: Company Press Release