Segue compiles Emang maiden resource

THE BOURSE WHISPERER: Segue Resources has announced a maiden Inferred Resource for the company’s Emang manganese project in South Africa.

The new JORC-compliant Inferred Resource stands at 13.9 million tonnes at 24.6 per cent manganese and 11.5 per cent iron.

Segue said the resource has had been based on results the company achieved from a program of 62 reverse circulation and nine diamond drill holes across the Northern, Central, Southern and Hills Areas of the project.

 

Drill collar locations and Resource block model. Source: Company announcement

Contained within the global Inferred Resource envelope is a high-grade resource of 3.7 million tonnes at 33.9 per cent manganese and 11.3 per cent iron.

“Segue commenced drilling at the Emang manganese project in September 2011 and to achieve a maiden JORC resource within six months is a fantastic result for the team involved,” Segue Resources managing director Steven Michael said in the company’s announcement to the Australian Securities Exchange.

“The inferred resource of 14 million tonnes at 25 per cent manganese and 12 per cent iron is at the top end of our expectations and covers only 20 per cent of the prospecting right area.

“More importantly, the high grade resource could produce direct shipping ore at 500,000 tonnes per annum for over seven years.”

Segue said the majority of the resource at the Emang manganese project is within 50m of surface and commences from surface in many areas.

The company considers the resource will very likely be amenable to open pit mining with almost no pre-strip required and a very low ratio of waste to ore during production.

While less than 20 per cent of the prospecting right area has been explored so far, Segue claims the maiden inferred resource at the Emang manganese project is already larger and of higher grade than many other manganese deposits in Africa and Australia.