Segue introduces encouraging drill results

THE DRILL SERGEANT: Segue Resources has completed the first 28 reverse circulation (RC) drill holes on its Emang manganese project in the Postmasburg Manganese Field (PMF) located in the Northern Cape Province of South Africa.

The 28 holes represent just over 40 per cent of the holes the company has planned for its initial drilling program at the project.

Source: Company announcement

The company has had one RC drill rig and one diamond drill rig operating on site to date.

It commissioned an additional RC drill rig on 1 November, to ensure the program could be completed on schedule.

Three diamond holes have been completed so far; however logging of these holes is not yet complete.

A total of ten diamond drill holes are planned to be completed as part of the 28 holes program.

The company began sampling of RC chips in October and the first bulk shipment of samples was dispatched for assay during that month.

The company anticipates it will be commencing geological modelling of the manganese mineralisation in late November, following receipt of the final assay results.

Segue said it also expects to be releasing a maiden resource statement for the Emang manganese project by early December.

“The initial exploration results from the Emang manganese project exceed the company’s expectations at this early stage of exploration,” Segue Resources managing director Steven Michael said in the company’s announcement to the Australian Securities Exchange.

“To encounter manganese mineralisation in over 85 per cent of holes drilled is remarkable, and is a testament to the exploration team, led by Tenure Mineral Consultants.

“We look forward to receiving the first assay results in mid-November, followed by a maiden JORC resource in early December – less than six months from the company entering into the farm-in agreement.

“This will be a significant achievement for Segue and the Emang manganese project.”

Once the drilling program has been completed, Segue will have met its expenditure requirements for the first stage of farm-in to the Emang manganese project.

In order for Segue to earn a 30 per cent interest in the project, the company must pay to Emang Mmogo Resources ZAR7 million (A$0.84 million) plus an additional ZAR7 million (A$0.84 million) if the maiden resource at the project exceeds 10 million tonnes at a grade of at least 34 per cent manganese.

Segue can then earn an additional 21 per cent interest in the project (taking its total interest to 51 per cent) by spending ZAR21 million (A$2.52 million) on completion of a Bankable Feasibility Study.