Highlights

• Black Canyon (ASX:BCA) is acquiring 100% of granted licence E46/1383, boosting its foothold in Pilbara by 351km² to 1,175km².
• The licence is strategically located in the Balfour Manganese Field extending from the historic mine of Nicholas Downs in the north, including Flanagan Bore and the historic Balfour South Mineral Resource to the south.
• Under the licence, there are multiple outcropping manganese-enriched prospects.
• BCA believes that it has a great opportunity to discover and deliver Mineral Resources as there has been no historic drilling at the outcropping mineralisation.
• A drill campaign will be conducted by Black Canyon to investigate the potential size and grade of these new targets.

Australian manganese explorer and developer, Black Canyon Limited (ASX:BCA) is all set to acquire 100% of granted licence E46/1383, boosting its prospective manganese portfolio by around 351km² in the eastern Pilbara region.

BCA and Access Australia Mining (AAM) have signed a binding Tenement Sale Agreement for the acquisition. Access Australia Mining is a 100% owned subsidiary of Killi Resources (ASX:KLI). This licence acquisition will exclude copper rights.

The tenements consolidate prospective manganese-enriched shale horizons spread across 75km strike from the manganese Mineral Resources Estimate for Balfour South, Sixty Sixer, Flanagan Bore and the past producing manganese mine of Nicholas Downs.

Location of E46/1383, manganese enriched shale horizon (red solid outlines) and distribution of manganese targets and mineral resources across the tenement portfolio

BCA stock price gains over 9.5%

BCA shares reacted positively to the news, and traded at AU$0.230, climbing 9.523% in the early hours on 27 March 2023. The company stock has gained over 9.5% in the past six months on the Australian Securities Exchange (ASX).

Key details of the Balfour Manganese Field

In 2022, the African based manganese ore suppliers accounted for nearly 62% of supply to the global manganese ore production of 58.9 Mt, while the prolific Kalahari Mineral field accounted for around 50% of all the manganese ore exported from Africa.

The average global grade of manganese concentrates in 2022 was calculated at ~36% Mn with the majority of the manganese concentrate grades varying between 30 and 44% Mn.

According to the company, the size of the geological basin, mineral resources identified to date, distance from port, potential for shallow open pit mining and a likely beneficiated Mn oxide concentrate grade product between 30 and 33% Mn demonstrate the emerging potential for the Balfour Mineral Field.

BCA has assembled a dominant footprint in the region. The Company believes that with continuous exploration over the coming years there will be further impressive discoveries within the Balfour Manganese Field

Terms of the acquisition

The Consideration Shares and Deferred Consideration Shares remain subject to one-year escrow from the issue date.

Recent developments at Flanagan Bore Project

The Company is advancing a detailed metallurgical test work with the prime objective of delivering a high-quality manganese concentrate.

Tests related to scrubbing, crushing and heavy liquid separation (HLS) have been concluded on representative LR and FB core samples. The compilation and assessment of the results received to date is presently underway.

The company is confident to take forward scaled-up test work with larger dense media separation (DMS) processing circuitry with the positive trends achieved from HLS tests completed so far.

Also, environmental surveys have been restarted at the project location with autumn flora/vegetation and fauna surveys to complete in the coming six weeks.

Management commentary

 
Image source: BCA update

Path forward…

As the field season begins for the year 2023, Black Canyon is looking forward to drill high-priority targets on E46/1383, the Balfour east and west targets adjacent the historic Balfour South Mineral Resource and the 10km long Pickering manganese enriched calcareous shale horizon.