Perth-based junior Bryah Resources announced that it has signed a $7.3m manganese farm-in agreement with OM Holdings.
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.
“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