$69 postpage LB

Manganese Focussed Element 25 Achieves Excellent Progress Across All Work Streams In Q3FY20

  • April 23, 2020 10:25 PM AEST
  • Team Kalkine
Manganese Focussed Element 25 Achieves Excellent Progress Across All Work Streams In Q3FY20

Mineral explorer Element 25 Limited (ASX:E25) has released its Activities Report for the March Quarter 2020, wherein the company made some excellent progress across multiple work streams, notwithstanding the impact of the novel 2019 Coronavirus (Covid-19) pandemic.

March Quarter 2020 – Key Highlights

Given the restrictions been imposed due to Covid-19 pandemic, all of the Company staff and contractors have been observing social distancing measures and working from home wherever possible, keeping up with the government guidelines.

Element 25 continues to advance the Pre-Feasibility Study (PFS) for its flagship Butcherbird High Purity Manganese Project to formulate a plan for the potential start of production at the Project via a low capex manganese concentrate export operation. The manganese concentrate opportunity is presenting a near term cashflow potential that would strengthen the Company’s balance sheet whilst complimenting its strategy to produce high-purity manganese including Electrolytic Manganese Metal (EMM) and High Purity Manganese Sulphate (HPMS) for lithium-ion battery (LIB) cathodes.

Pre-Feasibility Study

The ongoing PFS is expected to reveal a robust base case for the commercialisation of the manganese resource. Based on the key flowsheet components, Element 25 is sure about the project having a long life, low cost high purity manganese production hub producing EMM and HPMSM. Further, certain modifications in the flowsheet implementation strategy are expected to have a positive impact on capital and operating costs.

One of the critical outcomes of the work to date has been confirmation of the potential to beneficiate the Butcherbird ore utilising a cost-effective flowsheet, providing an opportunity to implement a staged development approach with a start-up manganese concentrate export operation.

Processing Methodology: The optimisation of the beneficiation circuit was successfully completed, and the beneficiation test work included crushing, screening, wet scrubbing, and ore sorting, which produced a commercially marketable 33%Mn concentrate product. In the meanwhile, the PFS is evaluating the opportunity for a low capital, accelerated cashflow generation under Stage 1 development of the Butcherbird Project.

  • Power Generation: During the reporting period, the Company continued to collect continuous ten-minute wind and solar data via SODaR and Pyranometer equipment installed at site. Also, wind data has now been collected for eleven months and solar data for approximately eight months.
  • Process Water: The Company also completed the first round of water exploration drilling at a prospective groundwater supply target identified to the south and east of the mining lease area. This includes the downstream extension of the Cenozoic basin and the associated superficial and palaeochannel aquifers. A total of 10 holes were completed under the drilling at this target, which was selected basis proximity to the mining lease, regional geology, surface topography, pastoral tenure and native title claim boundaries.Two aquifers were identified during the programme and they are expected to yield sufficient process water for the current development plans at the Project while subsequently pump tests will be carried out to confirm the capacities of the aquifers. In addition, five shallow (5m) holes (BBAC00193 to 197) were also drilled on the Butcherbird mining lease, filled with coarse gravel and would be later used to test the permeability of the proposed Tailings Storage Facility site.
  • ARENA Sponsored IDE Investigations: The ARENA grant programme Phase 3 requires finalisation of the EMM electrowinning parameters and establishment of cathode pre-treatment protocols. During the quarter, the Company began testing of these on a quarter scale electrowinning cell using intermittent power, modelled on the site data profiles, with the results showing that electropolishing has been successful in smoothing the cathode and the work would now be take forward to the next steps. Currently, all laboratory work has been put on hold pending clearance by the University authorities given the Covid-19 outbreak. However, the literature review components of the programme have been completed during this downtime. IDE demonstration activities would recommence once the Covid-19 restrictions allow.

Corporate

  • Silverstream Royalty Sale: The Company executed a binding sale and purchase agreement with SilverStream SEZC dba Vox Royalty to dispose of a portfolio of royalties relating to several project areas at a value consideration of AUD 500,000 in SilverStream shares, subject to a number of conditions.
  • Acuity Capital Funding Facility: Element 25 also entered into a Controlled Placement Agreement (CPA) with Acuity Capital to provide E25 with up to $ 2 million of standby equity capital over the coming 23-month period for development of the project.

The Company Board continues to monitor the situation and taking all steps as necessary to maintain safe working conditions while continuing with planned work programmes where it is safe to do so.

Stock Information: The market capitalisation of Element 25 is nearly AUD 15.65 million with ~ 92.03 million shares outstanding. The E25 stock ended the day at AUD 0.170 on 23 April 2020. E25 has generated a positive return of 70% over the last one month.

Gold MTF non-AMP

 

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK