Bryah resources Limited (ASX: BYH), a metal and mineral explorer, announced on 7th May 2019 that the company started the drilling activity at the historic Horseshoe South manganese mine within the Bryah Basin in central Western Australia. The company recently signed a $7.3 million manganese Farm-In and Joint Venture deal with OM Holdings Limited (ASX: OMH) and moved towards the drilling on priority targets at the prospect.
The Joint Venture includes a Stage 1 project expenditure of $500,000 to undertake to drill, and the company commenced it before the deadline of 30th June 2019 and started the drilling of a minimum of 3,000 metres at the prospect.
As per the contract terms, the company remains the manager of the project until OM Holdings earns a 51% interest in the joint venture.
The mine historically produced a million tonne of high-grade manganese from 1948 to 1969. Recently, Process Minerals International, a subsidiary of Mineral Resource Limited (ASX: MIN) achieved a saleable production of 400,000 tonnes of manganese ore from 2008 to 2011, through processing historical stockpiles and completing open pit mining operations.
Horseshoe Range, which contains the production dominated Horseshoe South Mine, has been the main producing region for manganese within the Bryah and Padbury Basins. The Horseshoe South Mine is located on the mining lease- M52/806 and the Horseshoe Range also hosts a smaller satellite deposit at the Horseshoe North Mine, which is located on the exploration licence E52/1860.
The first production from both the satellite deposit and Horseshoe South Mine was from 1948-1969 when 490,000 tonnes were mined with an average grade of 42% of manganese.
The sampling and mapping program undertook by the company in the year 2018 over the tenement-M52/806 (mining lease), and the adjacent area revelled substantial manganese potential with rock chip samples. The chip samples were grading to 48.8% of Mn.
Bryah resources completed shallow drilling on the neighbouring tenement towards the south of the Mining Lease M52/806 in the year 2011, which in turn, identified an Indicated Mineral Resource of 437,000 tonnes, with an average grade of 19.6% manganese. As per the company, it is targeting the North side of the Indicated Mineral Resources during Stage 1, and the drill rig is currently on site.
As per the company, other high priority target includes- Brumby Creek and Devils Hill, which will be explored in Stage 1 of the drilling program.
The shares of the company returned a rate of return of -46.67% in the last twelve months, and a return of -18.37% over the tenure of the last six months. However, there is a slight improvement in returns over the last one month, the previous one-month return of the company is at 17.65%.
The share of the company was trading at A$0.080 (as on 8th May 2019, AEST: 12:51 PM), flat as compared to its previous close.
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