Shaw River Manganese drill results at Otjozondu pave way for JORC resource upgrade

Shaw River Manganese (ASX: SRR) has delivered highly promising results from the recently completed drilling program at its 75.5% owned Otjozondu Manganese Project (Otjo) in Namibia that will underpin a resource upgrade in January 2012.

The results follow the company’s re-instatement to the ASX  today after the settlement of a legal matter in Namibia, which now clears the way forward for development of the Otjo project.

The program returned 61 drillholes with significant manganese intervals greater than 15% manganese, with 21 holes reporting intervals greater than 30% manganese.

Seven holes in the program intersected greater than 40% manganese. Assay results are awaited for 1,201 samples in the program (about 33% of the program).

The new drilling confirms the presence of significant manganese horizons which are complementary to previously unannounced historical intersections. Drilling along the strike has also extended the size and potential of the prospect areas.

Highlights include:

Labusrus Deposit

- 9 metres at 25.74% manganese from 2 metres including 2 metres at 45.05% manganese from 2 metres;
- 9 metres at 26.85% manganese from 30 metres including 4 metres at 31.18% manganese from 32 metres ; and
- 3 metres at 37.8% manganese from 28 metres.

Bosrand Deposit

- 3.55 metres at 37.2% manganese from 0.35 metres;
- 11.9 metres at 27.89% manganese from 33.57 metres including 4.62 metres at 35.6% manganese from 34.04 metres; and
- 7 metres at 30.6% manganese from 12 metres including 4 metres at 35.3% manganese from 13 metres.

North Bosrand Deposit

- 13 metres at 25.09% manganese from 25 metres including 3 metres at 35.08% manganese from 25 metres;
- 10 metres at 28.96% manganese from 35 metres including 6 metres at 30.78% manganese from 38 metres; and
- 28 metres at 21.05% manganese from 14 metres.

The results are from the first batch of assays from 6,205 metres of reverse circulation drilling and 1,718 metres of diamond drilling completed at four existing resource areas and two new prospect areas at the Otjo Project.

The results are consistent with the extensive outcrop and previous drilling conducted at Otjo. Further assay results are due in December 2011 ahead of the JORC Resource upgrade.

Vincent Algar, Shaw River’s managing director, said “initial work suggests that the current Inferred Resource at Otjo has the potential to enjoy low mining costs, as most of it is outcrops and the potential open pits will be relatively shallow.

"The drilling has focussed on expanding and further defining the resource inventory while improving our understanding of the potential economics of the project, with drilling focusing from surface to 50 metres.”

Drilling so far has intersected predicted manganese grades in the majority of holes. The increased density of the drill information continues to improve the company's geological understanding of the area and puts it in an excellent position to revise its resources.

The company is now working through to a reserve by developing and optimising a mine plan to develop the project in the shortest possible timeframe.

Inferred Resources currently stand at 6.8 million tonnes at 23% manganese with an exploration target of 35-50 million tonnes grading 23-27% manganese.

The current resources are based on 33,000 metres of historical drilling (22,000 metres of diamond drilling and 11,000 metres of RC drilling).

Historical Production from the Otjo Project, as well as current production by a neighbouring operator, point towards upgrading of in-situ material to manganese products between 36% and 42% Mn.

The initial round of drilling was focussed at the Bosrand deposit, which currently has an Inferred Resource of 2.1 million tonnes grading 24% manganese, and the Labusrus deposit, which currently has an Inferred Resource of 0.9 million grading 26.9% manganese.

These two areas are expected to make a significant contribution towards growing the manganese resource inventory for Otjo, where the company is progressing a Feasibility Study to start production of manganese ore for export from Namibia.

The Feasibilty Study is focused on production of a gravity-beneficiated manganese lump ore for export via the Port of Walvis Bay.


Regional Exploration at Otjo

During October and November 2011, Shaw River expanded its geological field capacity in Namibia and commenced regional soil sampling programs over a range of magnetic and EM targets on its leases.

Shaw River holds exploration and mining licences over 1,700 square kilometres covering 144 kilometres of the strike of the Otjozondu Manganese Field in Namibia.

Orientation work and early results indicate that the manganese horizons can be detected under shallow cover and the extensive work program is likely to generate a large number of follow up targets for further shallow drilling and trenching over the coming months.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23287/shaw-river-manganese-drill-results-at-otjozondu-pave-way-for-jorc-resource-upgrade-23287.html