701 Mile Project - Manganese

See our exploration plans

Background and Geology

The 701 Mile tenements consist of two granted tenements (E52/1531 and E52/2232) and located approximately 70km south-east of Newman, Western Australia.  The tenements cover Proterozoic age rocks of the Collier and Officer Basins that contain known occurrences of manganese, similar to those at the nearby Balfour Downs (non JORC compliant resources in excess of 15 million tonnes operated by Hancock Prospecting Ltd) and the Jigalong Prospect (Hannans Reward Ltd).

Within the Collier Basin, stratabound supergene manganese mineralisation occurs within or on the "Manganese subgroup" shales of the Balfour Formation. Shaw River regards the 701 Mile Project as highly prospective for manganese given the similar geology and results to date on surrounding tenements.

The 701 Mile Project area, was historically exploration ground for Dampier Mining (1976) which identified surface enrichment of manganese in shales of the Manganese sub group over a strike length of 3km.  The shales dip on average 5-10 deg to the west and disappear below alluvium to the west and south.  Banded Iron formation was associated with the same horizon along strike.  No surface sampling results were reported by Dampier Mining.

World class Iron ore deposits of the Pilbara occur within the Brockman, Marra Mamba and Boolgeeda Iron Formation of the Hamersley Basin, and whilst these do not occur on surface within the 701 Mile Project area, there is some potential that they may occur at depth or as faulted blocks.

A number of CID (Channel Iron Deposits) and scree slope deposits also occur in the region within the 701 Mile Project area. These may occur buried by thin recent sediments. Closer investigation of strong linear magnetic features over the tenements forms a valid exploration model for this deposit type.

Manganese Exploration

  • Field Sampling confirmed surface manganese enrichment over a wide area, including material under shallow cover, extending over 6km².
  • Surface Sampling of the area included 210 rock chip samples taken over outcropping Balfour formation, which returned a maximum assay value of 48.5%Mn and an average of 31.2%Mn. 233 soil lag samples taken over the sedimentary terrain and returned a maximum assay of 25.5%Mn and an average of 9.68%Mn.
  • During the period a 145 hole, 1,237m aircore program was completed over an occurrence of manganese enriched gravels and laterites. The drilling identified areas of extensive low grade manganese-rich gravels at 701 Mile. Based on the results an Exploration Target * of 2 million Tonnes @ 10%-12% Mn has been estimated. Due to the 50m x 100m spacing of the drilling and regular gravel surface, an inferred resource will be calculated in order to complement follow up beneficiation work.
  • 701 Mile manganese intersection include:
    • 13 drillholes returned intersections of manganese rich gravels containing over10%Mn over 2m in thickness from surface
  • Best intersections included:
    • 2m at 14.3%Mn from 0m in AC085
    • 2m at 15.8%Mn from 0m in AC086
    • 3m at 15.7%Mn from 0m in AC097
    • 4m at 13.8%Mn from 0m in AC098
  • Metallurgical testing confirmed the following:
    • Concentration of manganese "lump" in sediments.
    • The successful upgrading of sampled manganese gravels by simple beneficiation, resulting in an upgrade to 1.6 x Mn% and recovery of over 65% of all manganese through simple screening. If justified by the calculated resources, bulk samples of the different gravel (10-12%) and outcrop manganese (+30% Mn) will be taken and sent for bulk beneficiation tests.
  • 701 Mile
    • A regional auger geochemistry drilling programme has been undertaken under a joint venture agreement with Laconia Resources Ltd.
    • Additional field mapping, geological interpretation and soil sampling was completed to identify further manganese potential of the tenement.

Exploration Plans

First phase resource auger drilling was completed on a 4km long pisolitic channel iron deposit (CID) which was identified during exploration. Additional work on this discovery will take place after the receipt of assay information which is expected in
2012.

New applications for an additional 73 Blocks under tenement E52/2664 and 119 blocks under tenement E52/2702 are currently under application.

*Forward Looking and Exploration Target Statements

Some statements in this announcement regarding future events are forward-lookingstatements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements concerning the Company’s exploration programme, outlook, target sizes, resource and mineralised material estimates. They include statements preceded by words such as "potential", "target", "scheduled", "planned", "estimate", "possible", "future", "prospective" and similar expressions. The terms "Direct Shipping Ore (DSO)", "Target" and "Exploration Target", where used in this announcement, should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. Exploration Targets are conceptual in nature and it is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Reserve.