Shaw River Resources looks to expand manganese foot-print with Ghana option.
www.proactiveinvestors.com.au
Emerging manganese mining house, Shaw River Resources (ASX: SRR) has penned an agreement to a six month evaluation option for the company to acquire Mwana Africa’s 80% interest in a manganese project in Ghana.
Shaw River managing director Vincent Algar said the option over the Butre Project was strategic, given it was located close to excellent infrastructure in a world class manganese rich area. “Shaw River is building its project pipeline by becoming involved in manganese projects in prospective geological settings, which have scale potential and are close to existing infrastructure such as our flagship Baramine project in the Pilbara,” Mr Algar said.
The Butre Project is strategically located 30km on sealed roads from the bulk port of Takoradi and 200km west of the Capital Accra. Takoradi currently ships around one million tonnes per annum of manganese ore from the world class Nsuta Manganese Mine, operated by Palmary Enterprises.
The project contains known manganese occurrences at Jimra Bepo, consisting of multiple in situ manganese oxide seams up to 12 metres thick. Shaw River intends to confirm an initial exploration target of in-situ DSO oxide manganese ore of 1.7 to 1.9 million tonnes at 35 to 45% manganese, and an additional 1.5 to 1.7 million tonnes at 15 to 25% manganese of sedimentary ores which will require beneficiation.
Ghana and West Africa have long been one of the key suppliers of high quality manganese oxide ore for the steel market. Gold drilling conducted by MWA intersected gold mineralisation over a strike length of 500 metres. The best intersections include 2m @3.95 g/t Au, [email protected]/t Au, and 5m @ 2.99g/t Au. Shaw River will hold an exclusive evaluation option to acquire Mwana’s 80% interest in the Butre Project for six months.
A maximum cost over the exclusive evaluation period of USD$50,000 is required to be expended on management of the existing joint venture over the evaluation period. If Shaw River elects to exercise the option to acquire MWA’s entire 80% stake in the Butre Project, a consideration of USD$150,000 in cash will be paid to MWA.
SRR Price at posting:
20.9¢ Sentiment: None Disclosure: Not Held
