Butre Manganese Project
(Ghana, West Africa)
Shaw River has acquired Mwana Africa PLC's (AIM: MWA) 80% interest in the Butre Project located in the mining friendly Republic of Ghana in West Africa. Ghana and West Africa have long been one of the key suppliers of high quality manganese oxide ore for the steel market.
The Butre Project is strategically located 30km on sealed roads from bulk port of Takoradi and 200km west of the capital Accra, Republic of Ghana. Takoradi currently ships around one million tonnes per annum of manganese ore from the world class Nsuta Manganese Mine, operated by Palmary Enterprises (owners of Woodie Woodie Manganese Mine), which has been operating since 1923 and has produced some 25 million tonnes of high grade oxide manganese ore. Ghana and West Africa have long been one of the key suppliers of high quality manganese oxide ore for the steel market.
MWA has stated the following geological findings and the exploration targets from historical exploration.
The Butre Project contains known manganese occurrences at Jimra Bepo, consisting of multiple in-siti manganese oxide seams up to 12 meters thick. Shaw River intends to confirm an initial Exploration Target* of in-situ DSO oxide manganese ore of 1.7 to 1.9 million tonnes at 35 to 45% manganese and an additional 1.5 to 1.7 million tonnes at 15 – 25% manganese of sedimentary ores which will require beneficiation. The project lease contains other manganese occurrences of oxide manganese not yet evaluated.
MWA conducted gold drilling with 16 RC drillholes and intersected gold mineralisation over strike length of 500 meters. Best intersections include 2m @ 3.95g/t Au, 18m @3.36g/t Au and 5m @2.99g/t Au.
Shaw River has completed a 24 hole, 943m aircore drilling program the Jimra Bepo manganese occurrence to establish the potential for direct shipping manganese ore.
- The drilling identified manganese mineralisation at Jimra Bepo over an initial strike length of approximately 400m. Hole BUAC013 contained 28m at 20.8%Mn from 2m, including 4m at 31.1%Mn from 24m and appears to be related to significant local thickening of the manganese mineralised horizon. Evidence from the drilling and past work indicates the presence of multiple parallel seams within the Jimra Bepo area that could significantly add to the overall exploration target.
- Significant Butre manganese intersections include:
- 28m at 20.8%Mn from 2m including 4m at 31.1%Mn from 24m in BUAC013;
- 4m at 22.8%Mn from 36m including 2m at 25.3%Mn from 38m in BUAC10;
- 6m at 13.1%Mn from 6m including 2m at 16.8%Mn from 6m in BUAC007;
- 10m at 11.3%Mn from 0m including 2m at 16.8%Mn from 6m in BUAC005; and
- 7 additional holes in the program intersected > 10%Mn.
Previous work in the Butre area refers to the successful upgrading of the material by simple washing, crushing and wet screening to achieve a high grade product grading +40% Mn.
- Significant Butre gold intersections include:
- 2m at 34.22 g/t Au from 24m in BUAC009. Re-assay using Fire assay technique returned 2m at 61.74g/t Au in mostly coarse gold;
- 12m at 1.17 g/t Au from 48m including 4m at 2.79 g/t Au from 56m in 06BUERC003;
- 24m at 2.88 g/t Au from 16m including 4m at 7.87 g/t Au from 28m and 8m at 2.75 g/t Au from 80m in 06BUERC010;
- 4m at 4.08 g/t Au from 0m in 06BUERC014; and
- 76m at 1.16g/t Au from 0m including 12m at 2.02g/t Au from 40m and 8m at .81g/t Au from 92m in 06BUERC017.
Shaw River plans to complete:
- Bulk sampling and beneficiation testing of ore types to be conducted in 2010;
- 1,500m RC drill program over Jimra Bepo manganese occurrence in 2010/2011;
- Inferred Resource (manganese) calculation planned for 2010/2011;
- Metallurgical test work in 2010/2011;
- RC program for gold targets to be conducted in 2010/2011;
- Inferred Resource (gold) calculation planned for 2nd quarter 2011;
- Geological mapping and sampling to continue over manganese and gold targets Dec 2010-April 2011.
*Forward Looking and Exploration Target Statements
Some statements in this announcement regarding future events are forward-looking statements. 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.