Black Canyon (ASX:BCA) submits Mining Lease application for Flanagan Bore manganese deposits

Highlights

• Black Canyon (ASX:BCA) has submitted a Mining Lease application for the Flanagan Bore project that covers the FB3 and LR1 manganese deposits.
• The application incorporates proposed process infrastructure, laydowns, accommodation village and tails storage facility.
• On the Feasibility Study front, Black Canyon is progressing well with many developments.
• The Company believes that the Flanagan Bore Mineral Resource update is on schedule for completion by November end.
• BCA continues to advance its high purity manganese sulphate (HPMSM) strategy to scoping level.

Black Canyon Limited (ASX:BCA), a Western Australia-focused manganese explorer, has marked a major milestone with the submission of a mining lease application over the FB3 and LR1 manganese deposits at Flanagan Bore. 

Meanwhile, the Company is advancing many developments concerning the Flanagan Bore mineral resource update, feasibility studies, and high purity manganese sulphate (HPMSM) strategy.

The Flanagan Bore manganese project is part of the Carawine Project, in which the Company has a farm-in and joint venture agreement with Carawine Resources Ltd having earnt 51% and earning up to 75%.  

Mining Lease Application - A significant milestone achievement

Black Canyon and its JV partner Carawine Resources lodged the Mining Lease Application (MLA46/546) for manganese deposits at the Flanagan Bore project, which include FB3 and LR1 as well as extending over the recent discoveries at L1 and TF1.

To ensure that sufficient area is available to locate the open pits, stockpiles, tails storage facility and build site infrastructure, the mining lease application comprises 1,756 hectares.

Mining Lease application (MLA46/546) over Flanagan Bore Project and key site infrastructure

(Source: BCA update, 21 November 2022) 

Flanagan Bore mineral resource update on schedule

Black Canyon suggests that a mineral resource update concerning the Flanagan Bore is on schedule for completion by the end of November 2022.

The update is expected to validate key parameters of grade, continuity and an increase in scale with the discovery of further mineralisation along the L1 to TF trend.

HPMSM Strategy advancing well

The Company believes that its high purity manganese sulphate (HPMSM) strategy is advancing to scoping level as hydrometallurgical testwork continues.

The development of an HPMSM pathway is aimed at adding further downstream value, which the Company expects to aid in diversifying the current critical cathode mineral supply chain to the US and Europe-based end users.

Major headways across the project

Detailed metallurgical program - As the Company is gearing up for more detailed metallurgical testwork, four composites have been selected from 1.4t of PQ diamond core from 10 drillholes which were drilled in December 2021.

The metallurgical program will advance the previous findings from the initial sighter level testwork undertaken for the Scoping Study that examined both ore sorting and density separation techniques. The Scoping Study concluded that density-based techniques are more robust and reliable for beneficiation of manganese-enriched shales.

The program is aimed at further evaluating scrubbing/washing intensity, and dense media separation techniques.

Hydrological investigation and water exploration program - A total of nine exploration holes were drilled approximately 4 to 5 km from the proposed ore processing facility located to the west of the FB3 deposit. The region was reviewed to discover aquifers of sufficient size and recharge with adequate quality. The holes were drilled into structurally dislocated carbonate units, and five of them revealed positive water indications. Several field water quality tests proved that water has low salinity and acceptable pH.

For gathering baseline date, several bore holes were converted to long-term monitoring bores. It will also enable sampling of sub-terranean fauna in the future for environmental impact.

As the results were encouraging, the Company plans further hydrological drilling to delineate the potential of aquifers to model the understanding of recharge and supply sustainability in the long run.

Environmental and social studies make headway - Black Canyon has engaged Preston Consulting to advise on the project approval pathway and management of key consultants.

The Company has also enagaged several primary consultants specialising in the design and implementation of studies across the disciplines of fauna, flora (subterranean and terranean), hydrology and social surroundings.

BCA shares traded at AU$0.240 on 21 November 2022.