Montezuma Mining Company identifies DSO manganese potential at Butcherbird

Montezuma Mining Company (ASX: MZM) has received results for a bulk sampling program recently completed at the Butcherbird Manganese Project, confirming direct shipping ore (DSO) potential.

Six potential DSO localities have been identified with five tested in the current program via bulk sampling using scraping and trenching. Grades of +40% manganese have been achieved at key, larger tonnage localities.

The test work was undertaken to determine if these occurrences could complement the global JORC resources by providing early production material with low capital and operational costs with the benefit of minimal processing requirements.

On December 7 Montezuma increased the Butcherbird project resource to 119 million tonnes at 11.6% manganese following the completion of a series of updated estimates by Snowden Mining Industry Consultants.

Importantly, the significant tonnages of DSO ore which could potentially be recovered represent important short term manganese inventories which are expected to enhance the projects' commercial outcome.

The envisaged production from these areas is in addition to the work currently being completed as part of the Feasibility Study that is looking at long term production of up to 1 million tonnes of manganese ore from the existing JORC resources.

Sampling program

The test work emulated a simple mining and mobile processing method, with very low capital requirements and operational risk.

Two sampling techniques were used; scraping, which removed the top 0.1 metres of material and trenching, which sampled the underlying 0.2-0.3 metres of material. The surface detrital manganese deposits are separate to the previously reported JORC resources.

The test work completed on the samples, which were collected in October of 2011, involved screening, washing and crushing only.

Results so far suggest that a DSO lump product is achievable from these areas via simple surface mining, washing, screening and crushing, yielding the specifications, ≥40% manganese, <0.1% phosphate, <15% silicon dioxide, and <7% iron.

The company is planning further work in 2012 to confirm DSO surface deposits size, recoveries and product grades.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23486/montezuma-mining-company-identifies-dso-manganese-potential-at-butcherbird-23486.html