OM Holdings Limited (ASX: OMH) provided an update on the mineral resource, ore resource and exploration activities of the company’s 100% owned Bootu Creek Manganese mine.
Mineral Resource Reserve and Ore Reserves:
As per the company, it depleted a total of 1.82 million tonnes grade at 21.94% Mn of Mineral Resources by mining and 0.51 million tonnes of Secondary Process Plant (SPP) ore stockpiles were depleted by processing during last year ended 31st December. The company also marked a reduction in low-grade SPP ore stockpiles of 0.44 million tonnes and 2.40 million tonnes of mineral resources blocks which had extended beneath the most current Life of Mine (LOM) pit designs.
However, the company recovered lower yield and product grades by mining activity below the base of weathering, which returned lower yield due to less favourable beneficiation characteristics of unweathered ores. The Remaining mineral resources and ore reserves have been assessed by the company critically on an individual pit by pit basis.
As per the company ,the Measured and Indicated Mineral Resource are limited as per the limitation of the remaining Life of Mine pit design.
The company reported a mineral resource of 4.78 million tonnes for the year ended 31st December 2018 with a grade of 22.89 % of Mn. As a result of depletion, the mineral resources of the company declined in 2018 as compared to 9.95 million tonnes in 2017. However, the company improved the grade of mineral resources which was 22.37% of Mn in 2017.
OM holdings’ ore reserves also declined for the same reason and reported at 4.38 million tonnes for the period ended 31st December 2018, down by 2.94 million tonnes as compared to the previous corresponding year, which marked the ore reserves at 7.32 million tonnes. However, the ore grade also increased for the period ended 31st December 2018 and reported at 21.31% of Mn as compared to 20.71% of Mn in the previous corresponding period.
The company further classified the current mineral resources and reported a total of in-situ Measured Mineral Resource of 0.82 million tonnes with a grade of 23.31% of Mn. The Indicated Resources for the period ended 31st December 2018 was 3.20 million tonnes with a grade of 23.28 % of Mn, and Inferred Resources were at 0.40 million tonnes with a grade of 22.84% leading to the combined in-situ mineral resource of 4.42 million tonnes.
The ROM and SPP resources marked at 1.18 million tonnes with a grade of 21.87 % Mn, and after adjusting with ROM and SPP stocks the net mineral resources reported at 4.78 million tonnes.
As per the company, the Mineral Resources are based on a 15% Mn cut-off grade.
The exploration for the year 2018 constrained to two small Reverse Circulation (RC) drill programs consisted of 5 holes infill program which extended the depth of the Ore Reserves to the northern end of the Chugga Far North deposit. Another 11-hole infill program delineated a shallow manganese prospect to the northwest of the Masai deposit, which is now included in the estimation of Inferred Mineral Resources. The company recently announced its Financial performance for FY18.
The company plans to take a prefeasibility test of the Renner West deposit including the metallurgical work to further upgrade the mineral resources of the project.
During the time of writing this report, the shares of the company are trading at A$1.325 (as on 19th March 2019, 03:41 PM), down by 0.38% as compared to its previous close.