Skull Springs Manganese Project

See our exploration plans

Background

Shaw River has agreed to enter a farm-in with Talisman Mining on three tenements located within 50km of the Woodie Woodie Manganese Mine in prospective geology (ASX Release - 13 Oct 2009). The new project, Skull Springs comprises of four tenements known as Wandanya, Yilgalong and Gangarrigan.

Shaw River will earn up to 70% interest of the new ground over a two year period as part of the joint venture agreement. This is another strong example of Shaw River's commitment to further expand its manganese exploration ground in the East Pilbara. Already rock chip sampling on the Wandanya prospect has identified manganese up to 65% manganese.

Location

The Skull Springs Project is 400km south east of Port Hedland and only 20km from sealed roads. The project is strategically located within close proximity of Shaw Rivers flagship Baramine project, just 50km to the north. The tenements are located within 50km from operating Woodie Woodie Manganese Mine. Wandanya is only 40km southwest and Yilgalong less than 20km west of the Woodie Woodie operations. Gangarrigan lies 50km South of Baramine and half way between two prominent historical manganese mining centres, Mt Sydney and Ripon Hills. The sealed Telfer-Port Hedland road cuts through the tenement.

Geology

The project's four tenements are located on exposed and covered Carawine Dolomite and Pinjian Chert, which are the targets for high grade DSO (+40%) manganese ore. At Wandanya high grade rock chips show up to 65% Mn have been assayed in outcrops of manganese mineralisation trending northeast to southwest, see figures. Talisman has conducted airborne EM over the Wandanya prospect ad has identified a number of potential targets, which will be followed up Shaw River as this project develops. Owners of the Woodie Woodie project, have recently drilled in the immediate area.

Recent Activity

  • At Wandanya, high grade rock chips up to 54.55% Mn have been assayed in outcrops of manganese mineralisation.
  • Helicopter reconnaissance confirms prospective geology close to two operating manganese mines. Reconnaissance confirmed the geological sequence present to be similar to that at Woddie Woddie (Pinjian Chert and Carawine Dolomite).
  • Airborne EM has been completed over the Wandanya Area and a number of targets were outlined within prospective geology. Shaw River has completed the re- processing of the Target TEM data using Vector Research's state-of-the-art Target TEM analysis.
  • Geological mapping conducted over the Wandanya area and within the Jarrow prospect by Dr J Drake-Brockman has shown a high degree of structural complexity.

Key conclusions of the mapping exercise were;

    • A total of three target areas have been identified to date, extending over 2.5km on strike;
    • The areas have returned a number of grab samples of manganese grading over 35% Mn;
    • The best outcrops of manganese are within mineralised shears, giving them possible depth potential;

    • Alteration signatures including manganese alteration, jasper, limonite indicate pan active hydrothermal system; and
    • Extensive brecciation of shale, ironstone and jasper indicate the ability of the systems to have enough volume and permeability to form economic bodies of manganese mineralisation.

Exploration Plans for 2010 and 2011

Shaw River plans to evaluate the target area of the new Skulls Springs Project as an extension to its Baramine exploration programs. Shaw River plans to:

  • Proceed with drill permit application and Native Title clearance for a 1,200m first pass RC drilling program at Wandanya commencing in 2011. The drilling will target three outcrop areas extending over 2.5km of strike where hydrothermal signatures, structures and manganese alteration are most intense.