Fully-funded rigs hit the ground at Bryah’s namesake manganese JV
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Reverse circulation drilling is underway at Bryah Resources’ Bryah Basin manganese JV, in a 2000m program fully funded by partner OM Holdings.
The drilling will test some potentially concealed manganese targets identified by recent gradient array induced polarisation geophysical surveying at the Brumby Creek prospect, focused on the Bryah West, Redrum, Mollie and Clover targets.
Importantly for the project’s 60% owner Bryah (ASX:BYH), it will come at no cost, with OM (ASX:OMH) fully funding the program under a farm-in agreement between the pair over the project’s manganese rights.
The drilling is one of a number of work programs being carried out by the JV, with metallurgical testwork on core samples collected from January’s diamond drilling campaign also underway.
This work aims to define the optimal processing method to produce a high quality manganese ore, with previous core scanning revealing grades above 40% manganese in several holes.
The duo are also working towards mineral resource estimates for the Brumby Creek, Black Hill and Horseshoe South deposits.
The farm-in agreement between OMH and Bryah covers manganese rights across some 600km2 of the entire tenement package held by Bryah in its namesake basin.
It includes the historic Horseshoe South manganese mine.
Under the terms of the deal, OMH funded $500,000 worth of project spending and paid a $250,000 exercise fee in 2019 to secure a 10% project interest.
Since then, the company has continued to spend to earn a greater share of the project. More than $1.5 million has been spent to earn OMH’s current 40% interest in the project and the company is committed to funding another $500,000 worth of project work.
This move would take its share in the JV to 51%, at which point it would have the option to be project manager. The majority share must be earned before June 30, 2022.
Once OMH has earned its 51% interest, BYH can either contribute to manganese exploration to maintain its 49% stake or allow OMH to fund the next $1.8 million of project spending to earn a 60% JV interest.
This article was developed in collaboration with Bryah Resources, 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.