Shaw River Manganese hits high grade manganese in Ghana

Shaw River Manganese (ASX: SRR) has intersected grades of up to 35% manganese (Mn) with low iron and other impurities from drilling at its 80%-owned Butre Manganese Project in Ghana, following up the first set of strong drill results.

There is potential to expand Butre both over strike and at depth.

These are the second round of results following the company's initial drilling success at Butre for manganese in 2010.

Butre has good road infrastructure and access to a bulk port at Takoradi.

Eight drill holes in the latest 25-hole program returned significant intersections with grades exceeding 15% Mn and the strike length of the mineralised zone has been confirmed over 600 metres.

Highlights include:

- 27 metres at 20.48% Mn, 4 metres at 22.85% Mn;
- 4 metres at 22.5% Mn, including 2 metres at 27.3% Mn; and
- 9 metres at 21.1% Mn, including 3 metres at 27.4% Mn and 6 metres at 25.3% Mn.

The project lies just 50 kilometres south of the existing Nsuta Manganese mine, currently exporting carbonate manganese ore through the port of Takoradi 30 kilometres to the East.

The latest infill drilling at 50 metre intervals focused on intersecting the steeply north-west dipping manganese-rich zones identified in the first program and has confirmed the mineralisation over a 600m strike length and to a depth below surface of 40m.

The company would be further encouraged by four of the holes ending in mineralisation over 15% Mn.

Vincent Algar, Shaw's managing director, told Proactive Investors today "the new Ghana drilling results add strongly to our motivation as a focused manganese explorer and soon to be producer at our Namibian project. Shaw River offers investors a unique opportunity to participate in the global production and exploration for this key commodity in the global steel cycle.

“The project at Butre is showing enormous promise. We already have the evidence that simple beneficiation can deliver a saleable, high-value manganese product. The project is located within 30 kilometres of a bulk port at Takoradi and has excellent access to road infrastructure and booming services in the Takoradi region of Ghana.

"These facts, including the presence of high-grade gold veins in such an accessible part of English-speaking West Africa is extremely encouraging,” Algar added.

The company said drilling in this program was tighter and more focused and has achieved the desired results with more significant intersections and an increase in strike and depth potential.

A further round of drilling is now being planned at depth to determine the manganese oxide and carbonate ore potential over the entire 1 kilometre length and 100 metre height of the hill.

Shaw River is planning a reverse circulation (RC) drilling program for the December quarter 2011 to identify depth and strike extensions and carbonate ore potential.

Bulk sampling for further beneficiation processing is to take place in September quarter to support previous testwork, indicating dense media product grades of 34-37% Mn.

Importantly, the project is located in close proximity to a port and attractive distance to European markets, making potential for a low cost operation that could produce an attractive margin from even a medium grade, low iron, oxide manganese ore product.

The growing market for carbonate ores as seen by the increasing sale of nearby Nsuta carbonate ore to China has major potential upside of the Butre Project.

Shaw River will assess the resource potential, product specifications and project economics following the completion of the next RC drill program.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18045/shaw-river-manganese-hits-high-grade-manganese-in-ghana-18045.html