Shaw River encouraged by Otjozondu drilling

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THE DRILL SERGEANT: Shaw River Manganese has bounced back from recent courtroom activities to report some encouraging results from the first batch of assays from a recently completed RC and diamond drilling program at its 75.5 per cent-owned Otjozondu manganese project in Namibia.

 

Location Otjozondu project, Namibia. Source: Company announcement

 

The company said it expects to be able to upgrade the JORC resource inventory for Otjozondu in January 2012.

The recent drilling comprised 6,205 metres of RC drilling and 1,718 metres of diamond drilling.

The initial round of drilling was focussed at the Bosrand deposit, which currently has an Inferred Resource of 2.1 million tonnes grading 24 per cent manganese, and the Labusrus deposit, which currently has an Inferred Resource of 0.9 million tonnes grading 26.9 per cent manganese.

Best results received from the first batch of assay results include:

Labusrus Deposit

–    9m at 25.74 per cent manganese from 2 metres, including 2 metres at 45.05 per cent manganese from 2 metres;

–    9m at 26.85 per cent manganese from 30 m, including 4m at 31.18 per cent manganese from 32m; and

–    3m at 37.8 per cent manganese from 28 m;

Bosrand Deposit

–    3.55m at37.2 per cent manganese from 0.35m;

–    11.9m at 27.89 per cent manganese from 33.57m, including 4.62m at 35.6 per cent manganese from 34.04m; and

–    7m at 30.6 per cent manganese from 12m, including 4m at 35.3 per cent manganese from 13m.

Shaw River said it expects the Bosrand and Labusrus deposit s to make a significant contribution towards growing the manganese resource inventory for Otjozondu, where the company is progressing a Feasibility Study.

“Initial work suggests that the current Inferred Resource at Otjozondu has the potential to enjoy low mining costs, as most of it is outcrops and the potential open pits will be relatively shallow,” Shaw River Manganese managing director Vincent Algar said in the company’s announcement to the Australian Securities Exchange.

“The drilling has focussed on expanding and further defining the resource inventory while improving our understanding of the potential economics of the project, with drilling focusing from surface to around 50 metres.

“The drilling has so far been highly successful, intersecting predicted manganese grades in the majority of holes.

“The increased density of the drill information continues to improve our geological understanding of the area and puts us in an excellent position to revise our resources.

“An updated resource model is underway and we will now work through to a reserve by developing and optimising a mine plan to develop this project in the shortest possible timeframe.”