Flanagan Bore looking fine for Carawine as JV partner hits more manganese at growing Pilbara resource
Drilling at the Flanagan Bore project in WA’s Pilbara continues to deliver substantial zones of manganese, with large hits of manganese enriched shale pointing the path to grow the emerging deposit of the industrial and battery metal.
In case you were wondering, that’s exactly what you want to see when you’re looking for manganese, something partners Carawine Resources (ASX:CWX) and Black Canyon (ASX:BCA) have been doing very well of late.
The latest drill results will be used to update and improve upon a current indicated mineral resource at the FB3 deposit of 67Mt at 10.4% Mn.
Assays from discovery drilling at the FB2 and L1 to TF1 targets are also expected in late September, demonstrating the potential to grow the Flanagan Bore project further.
Significant results include:
Manganese enriched shale has now been found from surface, extending over 1000m by 1200m at FB3.
It remains open to the south-west, where more RC assay results are pending.
Brendan Cummins, the executive director of JV manager Black Canyon, says the results will increase the confidence in the current Flanagan Bore resource.
“At FB3, a combination of key factors such as folding and topographic elevation have enhanced the enrichment of manganese in the hosting shales,” he said.
“This has led to the development of very thick zones of mineralisation from surface with multiple holes intersecting more than 50m thick intervals of manganese enriched shale around the fold nose that gently plunges to the southwest.
“Further upside is anticipated along the fold limb extension towards the L1 and TF1 trend where RC chip logging and surface mapping indicate further manganese mineralisation.
“These new drill results will increase the MRE confidence currently estimated at Flanagan Bore and will very likely increase tonnage so the Company can continue to build upon the success of our recent positive Scoping Study.”
That scoping study in August confirmed Flanagan Bore as one of the most exciting potential manganese developments in Australia, with a 20 year mine life at an average production rate of 1.8Mtpa.
The project boasts 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.
Work is also ongoing to study the production of high purity manganese sulphate for the emerging lithium ion battery market.
Flanagan Bore is part of the Oakover JV between Carawine and Black Canyon, where Black Canyon are farming in to the joint venture, around 120km north east of Newman.
Black Canyon has 51% of the project so far and is earning up to 75% by sole-funding an additional $2.5 million in exploration expenditure. That means Carawine is exposed to the upside without having to fork out for drilling in its own right.
Carawine boasts its own projects in the Paterson, Tropicana and Fraser Range provinces of WA, as well as Jamieson in Victoria, including partnerships with mining giants Rio Tinto, IGO and Fortescue Metals Group.
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.