Flanagan Bore JV rolling in manganese as Carawine looks to raise exploration funds
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The Flanagan Bore project in WA’s Pilbara region is proving to have outstanding continuity with drilling intersecting thick, high-grade zones of manganese between two deposits.
Notable assays from drilling along the 2,000m of strike between the FB3 and LR1 deposits are 27m grading 13.7% manganese from surface including 11m at 15% manganese from 3m (FBRC305) and 39m at 12.3% manganese from surface including 13m at 15.5% manganese from 21m (FBRC317).
And there’s more evidence of the tenement-scale prospectivity of mineralisation at Flanagan Bore.
Regional drilling over the FB2 and FB6 targets by Carawine Resources’ (ASX:CWX) partner Black Canyon (ASX:BCA), which is increasing its ownership of the project from 51% up to 75% by sole-funding $2.5m of exploration expenditure, has also intersected significant thicknesses of manganese enriched shales.
Taken together, the results confirm the potential for a significant tonnage expansion of the current resource of 104Mt grading 10.5% manganese for 11Mt of contained manganese at the project.
Black Canyon executive director Brendan Cummins said the downhole intervals above 15% manganese will potentially add valuable higher grade tonnes that might be accessed early in a mine sequence and extend the previously announced 20 year mine life at a 1.8Mtpa production rate.
A Scoping Study had previously outlined low development capex of just $44m with a payback of less than two years, pre-tax NPV of $134m and impressive pre-tax IRR of 67%, generating $32.1m a year in operating cash flow over its first four years by selling a conventional 33% manganese concentrate for steel makers.
The strong results from Flanagan Bore is well-timed for Carawine, which has just launched a pro rata renounceable entitlement offer to raise between $4m and $5.5m.
It is offering existing shareholders one new share priced at 8c for every two shares held in the company. No shares will be issued if the offer fails to raise at least $4m.
Proceeds from the entitlement offer will be used to fund geophysical surveys and initial regional-scale drilling at its Tropicana North gold project followed by drill testing of targets and follow-up drilling of the Hercules and Big Freeze prospects as part of the Thunderstruck joint venture.
Earlier this month, the company released a maiden Indicated and Inferred Resource of 463,000t at 4.8g/t gold, or 71,000oz of contained gold, for Hercules, which remains open at depth and to the southwest.
Funds will also be used for ground geophysical surveys and follow-up drill testing at the Fraser Range nickel project, airborne and/or ground geophysical surveys and initial drilling at the Paterson project, and detailed geological mapping and follow-up drill program design at Oakover.
This article was developed in collaboration with Carawine Resources (ASX:CWX), a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.