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Australian manganese explorer and developer, Black Canyon Limited (Black Canyon or the Company) (ASX: BCA) is pleased to announce that reconnaissance mapping and rock chip sampling completed over the Wandanya Project has identified high-grade manganese mineralisation.
- Reconnaissance sampling over the Wandanya (E46/1407) tenement (BCA 100%) has delivered high-grade surface rock chip samples up to 54% manganese (Mn).
- Two samples taken 100m apart (across strike) returned 52.9% and 54.3% Mn from an outcrop that is approximately 300m long and 150m wide at the W2 prospect.
- Other samples targeting manganese across the tenement ranged between 12.2% and 33.5% Mn.
- No previous surface sampling or historic drilling has been completed over the outcropping mineralisation.
- Future exploration plans include additional mapping, sampling and gradient array IP (GAIP) to generate drill targets.
The sampling program was part of the initial assessment of the tenement to determine geological setting and mineralisation potential. The Wandanya tenement is located on the eastern boundary of the Oakover Basin and approximately 80km south of the Woodie Woodie manganese mine. Further work is planned to follow-up the results and continue mapping along strike to north.
Black Canyon’s Executive Director Brendan Cummins said:
“The high-grade manganese rock chip results encountered over the Wandanya Project contain approximately 20% more manganese than previous surface mineralisation we have sampled related to manganese enriched shales which commonly range between 25 and 35% Mn. The 50% plus Mn grades at Wandanya are more akin to those related to hydrothermal or contact style manganese enrichment which presents a new targeting opportunity for the Company.
“These early results are very encouraging given the grade of samples and similarities in geological setting to the Woodie Woodie manganese mine. The outcrop is approximately 300m long and 150m wide and to the north there appears to be further mineralisation that will be followed up with mapping and additional sampling.”
Figure 1. Sample site W003 – 52.9% Mn showing manganese enrichment on tenement E46/1407 at prospect W2.
Wandanya Manganese Mineralisation
The high-grade manganese mineralisation encountered at the W2 prospect outcrops over 300m strike and is up to 150m wide forming a gently sloping rounded hill. The mineralisation has been mapped as a mixed manganese dominant ferruginised breccia, with some relict bedding and hosted by dolomite. The area is structurally complex with multiple NE and NW-trending cross cutting faults mapped from aerial imagery. Further work is planned to evaluate the significance of the discovery which will include the evaluation of sub-cropping manganese mineralisation interpreted to the north and along strike that extends discontinuously for a further 1 to 2km.
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BCA:AU
Resource Drilling Commenced at Butcherbird Project - Updated
The additional drilling will provide infill data aimed at converting the inferred resources to indicated or measured categories to support the re-estimation of mine reserves. The increase in the “reserve tail” may open the project up to a wider range of potential financiers in addition to NAIF, who are currently undertaking due diligence2.
HIGHLIGHTS
- Programme comprises approximately 209 percussion drill holes for 6,270m targeting infill of existing inferred resources.
- Drilling to potentially extend current reserves of 7.2 years at 1.1M tpa concentrate production.
Figure 1: Summary of existing resources within granted mining lease.
The Project hosts a global resource of over 260Mt of manganese ore3 however the current reserves are limited to the areas which have been drilled out to a sufficient density to support measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme has been designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
Note: There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised.
Figure 2: Drillhole collar location plan summarising existing and proposed drillhole collar locations.
At the completion of the programme, the new drilling combined with historical data will be used to recalculate the resource base to support a recalculation of the proved and probable reserves with the aim of supporting a longer mine life to support project financing activities for the Butcherbird Expansion Project.
The drilling programme is expected to take approximately four weeks. Samples will be submitted for assay and database integration, which will be immediately followed by a recalculation of resources and reserves.
Element 25 Managing Director Justin Brown said:
“This drilling programme will allow the global resource at Butcherbird to be recalculated with a higher degree of certainty which is expected to result in a signification conversion of inferred resources to measured and indicated which will support project financing by increasing the reserve tail beyond that covered by the existing 7.2 year mine life.”
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Drilling Commences at Butcherbird Targeting Reserve Extension to Support Financing
The additional drilling will provide infill data aimed at converting inferred resources to indicated or measured categories to support the re-estimation of mine reserves and extend the life-of-mine (LOM) plan to ~20 years based on conversion ratios seen at Butcherbird previously. The increase in the “reserve tail” is important for project financing and can open the project up to a wider range of potential financiers in addition to NAIF, who are currently undertaking due diligence2.
HIGHLIGHTS
- Program comprises approximately 209 percussion drill holes for 6,270m targeting infill of existing inferred resources.
- Drilling designed to extend current reserves of 7.2 years to approximately 20 years at 1.1M tpa concentrate production.
- Reserve increase is an important component of securing project financing at favourable rates.
The Project hosts a global resource of over 260Mt of manganese ore however the current reserves are limited to the areas which have been drilled out to a sufficient density to support measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme has been designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Optimises Plant Design as Butcherbird Expansion Accelerates Towards FID
The FS published in January 2024 outlined a compelling opportunity to expand production at the Butcherbird Mine to take advantage of the large resource base and increase commercial returns by increasing production to a nominal 1.1 Mt per annum of manganese concentrate at lower unit costs. The FS estimates a modest capital cost of $49.8M.
Element 25 Managing Director Justin Brown said: “The Butcherbird Project hosts a world-class manganese deposit with more than 260Mt in resources, which will underpin the mine as a long-life producing asset2. The decision to progress with the Stage 2 expansion project comes at a time when manganese ore prices are showing strong gains after a period of depressed pricing during 20233. The decline in prices came to a halt when the extent of the damage at South 32 Limited (S32) Groote Eylandt Manganese Mine became clear with S32 recently forecasting a disruption in production until 20254. Prices in recent weeks have rebounded strongly with current pricing for 44% high-grade material quoted at U$6.93/dmtu cif Tianjin, approximately 60% higher than the quoted pricing in early April.5”
INNOVATION AT BUTCHERBIRD
There have been important advancements, particularly in the FEED phase of the Butcherbird expansion, where the Company has optimised the plant's delivery while minimising design, cost, delivery risk, processing risks and improving energy efficiency and emission profiles. This update outlines the progress in engineering design and project management, processing plant enhancements, procurement, project scheduling, environmental initiatives, technological advancements, and the Company’s commitment to technical excellence, indigenous engagement, as well as social and environmental responsibility and sustainability.
Engineering Design and Project Management
E25 has engaged local specialist engineering firm ProjX to manage the engineering design phase and serve as owner’s engineer throughout project execution. ProjX will assist with engineering, procurement and construction management activities to ensure a streamlined and well-managed project implementation plan.
Operational Improvements
The project team has made strategic improvements to the initial plant design, enhancing operational efficiency and maximising productivity. Integrating a second-stage crushing system will process larger materials directly into the primary circuit. The feed bin and apron feeder have been upsized to optimise truck cycling times and minimise feed disruptions, which has the potential to increase plant utilisation and reduce bottlenecks. The secondary crushing stage has been optimised to handle specific material sizes, ensuring a seamless process flow and eliminating the need for additional screening and material re-handling, a key focus of the design methodology.
Mining equipment sizing optimisation modelling has confirmed equipment selection to minimise unit mining costs, rehandling and ensure continuous plant feed availability. Further studies will investigate the potential to introduce electrified mining equipment and minesite light vehicles to reduce carbon emissions.
Process controls are being designed to ensure that each principal processing stage can operate as close to maximum performance as possible whilst allowing for in-process surge points and redundancy to allow for scheduled maintenance without interrupting production. Automation is being implemented at each stage to optimise equipment set points and performance.
Water consumption reduction through the potential introduction of a thickener and intelligent recycling will reduce the impact on the local water resources while reducing bore field operational costs.
Inline analysers will enable dynamic feedback to process control systems based on desired product specifications and allow for the optimisation of product blends and sales pricing based on customer requirements.
Crushing and Screening Circuit
Through extensive review, E25 has identified significant improvements to the crushing circuit at Butcherbird. These enhancements are designed to streamline operations, reduce the frequency of plant stoppages, and optimise material handling efficiencies. Key consideration was given to the clay-rich nature of the ROM feed, and several design modifications have been made to the flowsheet to eliminate the impact of these materials. Consideration has also been given to minimising double handling of material, with direct truck dump feed as the principal feed method into a feed hopper.
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Secures USA Site for HPMSM Refinery
HIGHLIGHTS
- The greenfield site in Burnside, Ascension Parish, Louisiana, is located adjacent to an existing sulphuric acid production and regeneration facility owned and operated by Veolia.
- E25 secures a ~35-acre (14 ha) parcel of land at prevailing market rates from Veolia.
- Sulphuric acid, natural gas, water and return water agreements to be established in parallel with the land purchase agreement.
- Sulphuric acid to be supplied at agreed contract rates over a 20-year term via pipeline from the Veolia facility.
- Signing of a binding term sheet represents a significant step forward for the Louisiana HPMSM Project.
- Completion of the transactions contemplated by the TS are conditional on:
- Execution of definitive agreements by 30 June 2024.
- E25 obtaining project finance and reaching a final investment decision (FID) prior to 30 August 2024.
- E25 and Veolia to work closely to execute definitive agreements within the agreed timelines.
- The TS also includes provision for E25 to lease a temporary laydown area from Veolia during Project construction.
- The next anticipated milestone is the granting of the air permit, a key construction permit required for the Project.
Element 25 Managing Director Justin Brown said:
“E25 aims to be a leading source of high quality, vertically integrated, traceable and ESG and IRA-compliant battery material to the global electric vehicle industry. Construction of our HPMSM facility in the USA – the first of its kind there – requires a project site with the necessary services and utilities and access to sulphuric acid as a key reagent, to allow the Project to proceed. The Veolia site meets these requirements, and we are pleased to have signed this TS with Veolia as an important step forward in Project execution.”
The TS contemplates several parallel definitive agreements and completion is conditional on execution of these contract documents as well as securing project financing and E25’s Board reaching FID before 30 August 2024 (or such later date as the parties may agree).
The definitive agreements to be executed no later than 30 June 2024 in the TS include:
1. the Land Purchase Agreement;
2. the Sulphuric Acid Supply Agreement;
3. the Road Easement Agreement; and
4. the Utilities and Services Agreement and Temporary Lease Agreement.
Veolia North America CEO of Sustainable Energy Solutions Stu Thomas said:
“As part of our Green Up strategy, we are pleased to contribute to the vehicle electrification value chain alongside Element 25. This operation will be complementary to our Burnside facility, bringing positive economic impact to Ascension Parish, and also have a long-term societal benefit to the energy transition.”
E25’s civil engineering works for the HPMSM project have to date been based on the Veolia site. It brings together a number of important synergies to support the long-term competitiveness of the E25 facility. Under the Sulphuric Acid Supply Agreement, Veolia will provide long-term secure sulphuric acid supply and agreed tariffs.
E25’s application for an Air Permit, expected to be granted in the coming weeks, used the Veolia site as the Project location in terms of the approval process. The signing of the TS is an integral step in bringing these threads together to optimise the overall Project schedule.
Securing a Project site is a significant milestone in E25’s agreements with General Motors (GM), one of E25’s partners in the HPMSM project. GM have committed U$85M in senior secured debt funding to the Louisiana Project1. GM’s investment is in parallel to the investment by E25’s second offtake and funding partner Stellantis N.V. (Stellantis).
Project financing activities and detailed engineering are ongoing as the HPMSM team progresses the Project closer to FID and commencement of Project delivery. The Company looks forward to bringing further updates as these milestones are achieved.
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
March 2024 Quarterly Report
Butcherbird Manganese Operations, Western Australia
- Detailed design, planning and procurement commences for Stage 2 Expansion Project to expand Butcherbird manganese ore production to 1.1 million tonnes per annum in line with a Feasibility Study (FS) completed in January 20241.
- Northern Australia Infrastructure Facility (NAIF) completes a strategic assessment of Butcherbird Stage 2 Expansion Project.
- Expansion Project is now proceeding with the detailed due diligence phase of NAIF’s assessment process.
- Manganese ore prices increasing, potentially in response to the South 32 Limited (S32) production disruption at Groote Eylandt. S32 is now estimating a repair timeline of ~12 months2.
Battery Grade High Purity Manganese (HPMSM) Development – Louisiana, USA
- E25 progresses engineering development, permitting, logistics and project financing via offtake and funding agreements for HPMSM facility in USA.
- Air Permit public meeting successfully completed paving the way for the formal issuance of the permit.
In January 2024, Element 25 Limited (E25, the Company) released a Feasibility Study (FS) on the proposed expansion of its 100%-owned Butcherbird Manganese Operations in Western Australia (WA) to target manganese concentrate production of 1.1 million tonnes per annum (Mtpa). The FS demonstrated strong economics with robust economic returns and rapid capital payback.
Expansion of the processing facility at Butcherbird is an important step in providing feedstock for the Company’s planned battery grade high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV3.
E25 is now, via a dedicated owners team supported by selected external contractors and consultants, advancing detailed design, planning and procurement activities for the Stage 2 expansion in parallel with financing.
Figure 1. Butcherbird Expansion Project Feasibility Study Summary4.
In parallel with expansion activities, the Company suspended Butcherbird’s current production operations, aiming to reduce operational cash outflows and re-focus resources and available cash on implementing the expansion plan outlined in the FS.
50,540mt of manganese concentrate was shipped on 27 January 2024. Approximately 15,000mt of manganese concentrate was subsequently transported to Port Hedland and will form part of a shipment scheduled to be loaded in early May 2024 (estimated). Stockpiles have now been depleted in line with care and maintenance activities on site, with haulage winding back and ultimately ceasing in early March 2024.
The current schedule anticipates operations to recommence in approximately 11 months following project financing being secured, when E25 plans to increase annual production to 1.1 million tonnes per annum of manganese oxide concentrate. Further detail and an updated schedule will be provided as the project team works through front-end engineering and design (FEED) activities.
Northern Australia Infrastructure Facility Strategic Assessment
During the quarter, the Northern Australia Infrastructure Facility (NAIF successfully completed a strategic assessment of the Butcherbird Stage 2 Expansion Project. The Expansion Project is now proceeding to the detailed due diligence phase of the NAIF assessment process.
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.