Black Canyon (ASX: BCA) shares gain 11% on manganese discovery at KR2 prospect

Highlights

• Latest assays from the RC drill campaign confirmed manganese discovery at the KR2 Prospect, WA.
• The KR2 manganese discovery has 400-500m cross strike width and a strike extent of at least 800m.
• The company is expecting to declare Mineral Resource Estimates for the KR1, KR2 and Balfour East prospects by quarter end.

In the latest announcement, Black Canyon Limited (ASX: BCA) revealed that it has discovered thick, shallow manganese enriched shales at the KR2 prospect. As per the assay results, there lies widespread manganese mineralisation at KR2 with many higher-grade intersections. The prospect is based in the Western Australia’s Balfour Manganese Field.

 
Data Source: Company update

The campaign drill tested six prospects across the company’s tenements within the Balfour Manganese Field with discoveries made at Balfour East, KR1, and now KR2.

The company has drilled around 220 holes over 6,927m during the campaign to test the targets across the company-owned tenements at the Balfour Manganese Field.

KR2 Discovery

In the KR2 target, total 14 holes over 378m have been drilled.

Also, a previously undrilled 500m section of outcropping supergene manganese mineralisation at KR2 has been tested using five E-W oriented lines.

Data Source: Company update

KR1 Discovery

The company has also received further assays from drilling conducted at KR1. Significant results include 26m @ 10% Mn from surface (KRRC055), 35m @ 9.4% Mn from 1m (KRRC067), 30m @ 9.7% Mn from surface (KRRC091) and 18m @ 11.6% Mn from 13m (KRRC097).

BCA tested a 2,500m section of outcropping supergene mineralisation at KR1 using E-W oriented lines, 200m apart with drillholes spaced at 100m or 200m centres. This section has not been previously drilled.

Data Source: Company update

Overall, Black Canyon is content with the assays received from the three prospects. The drill data has reflected geological and grade continuity. Now, the results are being processed to define Mineral Resource Estimates by the end of fourth quarter of the year 2023.

Data Source: Company update

Manganese Oxide HPMSM

The ASX-listed firm is progressing its feedstock variability studies to analyse the amenability of different manganese ore sources to leaching, simple beneficiation, and manufacturing battery grade HPMSM.

During the variability study, the company completed the leaching of the samples from the KR1 prospect. The material returned a 97% extraction rate. Now, multistage purification is being carried out before crystallisation of HPMSM.

Share price jumps over 11%

BCA’s stock price jumped 11.11% in early trade on 12 October 2023 after the announcement. At the time of writing the article, Black Canyon shares were trading at AU$0.150 apiece on the ASX.