THE BOURSE WHISPERER: Segue Resources (ASX:SEG) has released results of a new resource estimate compiled following a review of what had previously been announced for the company’s Emang manganese project located near Postmasburg in the Northern Cape Region of South Africa.
The key finding of the review was an error in the conversion of iron in the assay results, expressed as Fe2O3 (iron oxide), to an equivalent iron grade in the geological model, expressed as Fe (iron).
Segue explained the error in the conversion factor resulted in the iron grade contained in the original geological database and resource estimate to be lower than if the correct conversion factor was applied.
Segue’s exploration contractor, Tenure Minerals Consultants, completed a full audit of the new geological database to ensure accuracy of conversion of all minerals and to implement other improvements identified in the review.
The geological database was then interrogated by RSV GEM for data quality and integrity and found the database to be acceptable for the compilation of an inferred mineral resource under the JORC standards of mineral reporting.
The new inferred resource compiled by RSV GEM is:
– 16.5 million tonnes at 24.8 per cent manganese and 20.6 per cent iron.
This represents an increase of 19 per cent in resource tonnes, 19 per cent in contained manganese and 111 per cent in contained iron.
JORC Inferred Resource for Emang manganese project. Source: Company announcement
“The mineralisation at Emang is a combination of manganese and iron, which is reflected in the new resource estimate,” Segue resources managing director Steven Michael said in the company’s announcement to the Australian Securities Exchange.
“The economic potential of the Emang manganese project has been greatly enhanced with the new resource, as most of the manganese ore sold from the Postmasburg region contains a high level of iron (typically >20 per cent iron), which is attractive to Asian steel mills.
“It is unfortunate that the error in converting Fe2O3 to Fe was present in the initial resource estimate, however Segue’s best practice procedures enabled this error to be discovered quickly and rectified prior to additional drilling commencing on incorrect data.
“Also, the results of the Theo Pegram & Associates review will further increase the quality of information captured in the next phase of exploration.”
Segue said the new inferred resource will increase its ability to progress the Emang manganese project from exploration through to mine planning, development and production.
The next stage of exploration and evaluation at the project will include:
– Completion of a LIDAR survey to generate a detailed digital terrain map, including volumetric assessment of existing stockpiles and dumps;
– A detailed geophysical program (High Resolution Resistivity) to identify high priority targets for the next phase of drilling;
– Extensional drilling between the resource areas to increase the overall resource size and in-fill drilling of the existing resource to establish a maiden measured and/or indicated resource;
– Commence a scoping study to better define the project parameters, including mining rate, plant size, processing method and infrastructure requirements; and
– Assessing the product quality requirements of various manganese ore customers.