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Summary
- Element 25 Limited is developing its 100%-owned, world class Butcherbird Manganese Project in Western Australia to produce high purity manganese sulphate for lithium ion batteries and electrolytic manganese metal.
- The Butcherbird Manganese Project is a world class manganese resource with current JORC resources in excess of 263 Mt of manganese ore, Maiden Proved and Probable Ore Reserve of 50.55Mt at 10.3% Mn containing 5.22Mt Mn (4.28Mt Recoverable Mn).
- The quarter ending 30 June 2020 saw excellent progress for the Company, including publication of a Pre-Feasibility Study which looked at the potential for a low capital cost early cashflow operation exporting manganese concentrate from the Project.
- Recent detailed engineering design work identified specific items of equipment for integration into the beneficiation plant at the Project.
- Element 25 has placed orders for these specific items and processed down payments with suppliers, demonstrating on time and budget advancement of the export operation.
The stock of Element 25 Limited (ASX:E25),“Australia’s next manganese producer”, as this resource company regards itself, marked an uptick on ASX200 on 19 August 2020. E25 was up by 5.769% quoting $0.55 at the end, very close to its 52-week high. Besides, the stock has delivered impressive YTD returns of 205.88 % (as on 18 August 2020).
GOOD READ: Element 25 Reports “Excellent Progress” in June Quarter, Stock Riding High
Positive sentiment seemed to have built around the stock after the Company’s latest news advising that manganese concentrate export operation at Butcherbird Manganese Project seems to be accelerating, on time and on budget. Not only has Element 25 identified specific items of equipment for integration into the beneficiation plant at the Project, but it has also already placed orders and associated down payments with suppliers.
Project development timeline (Source: E25 Quarterly Report, 30 June 2020)
Identification of Equipment, Placement of Order, Processing of Down Payment
Recent detailed engineering design work consequent to the Pre-Feasibility Study (PFS) identified a number of specific items of equipment for integration into the beneficiation plant at the Project.
The Company acknowledges the fact that in certain instances, these key components have significant manufacturing and delivery lead times. To meet a contracted timeframe by typical mine development standards, Element 25 has proactively placed orders and associated down payments with a number of suppliers.
Kalkine image (Source: E25 ASX Report, 19 Aug 2020)
This move has certain advantages-
- Represents a key milestone in the Project development strategy.
- Provides certainty on delivery schedules to match the planned commencement of operations in the first quarter of calendar 2021.
- Provides certainty on pricing.
Delivery of these key items is currently scheduled for mid-December 2020. Besides, pricing obtained in the firm quotations are below the budgeted prices detailed in the PFS (in aggregate).
Unveiling Key Items In Discussion
Kalkine image (Source: E25 ASX Report, 19 Aug 2020)
Crusher and Dry Screen
The first stage of the processing plant comprises a jaw crusher. It has been sized, selected, and ordered from Max Plant, a Western Australian company. The second stage is a dry screen to eliminate fine grained clay material to be utilised in civil construction works and/or be disposed of in a dry-stack tail facility.
Log Washer
Log washer offers an attrition scrubbing step. It facilitates efficient optical ore sorting by removing remaining clays while physically breaking down a portion of the non manganiferous shale material. This has been ordered from CDE Global Limited in Northern Ireland.
Vibrating Screens
To manage sizing of the plant feed to remove waste material and optimise feed size ranges that allows effective ore sorting, several vibrating screens that are included in the flowsheet design. These have been ordered from Vipro out of South Africa.
Ore Sorters
A requirement in the process flowsheet, two ore sorters have been ordered from Steinert Australia that will be manufactured at the Steinert factory in Germany.
Motor Control Centre
A containerised Motor Control Centre is likely to be an integral component of the control systems for the processing plant. It will be manufactured by Integrated Switch Gear and Systems in Welshpool, Western Australia.
With developments fostering on time, Element 25 seems to be on track to build a globally significant, low cost, high purity manganese project turbocharged by early cashflow from a low capex concentrate export opportunity.
