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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (72327)	12/12/2010 6:32:15 PM
From: LoneClone	Read Replies (1) \| Respond to of 194042

Shaw River Resources' high grade manganese hits add to Baramine project potential Monday, December 06, 2010 by Jeff Coote proactiveinvestors.com.au The recently completed 10,000 metre reverse circulation drilling program by Shaw River Resources (ASX: SRR) at its 70% owned Baramine Project has intercepted significant manganese with results identifying high grades of manganese over significant widths in Area 3, including 4 metres at 33.6%Mn and 1 metre at 40.2% Mn. The Baramine Project is located 80km to the north west of the the world-class Woodie Woodie Manganese Mine in the Pilbara of Western Australia, where Shaw River is targeting manganese mineralisation similar to that at Woodie Woodie deposits. Previous drilling program results at Baramine returned intersections of up to 45.8% Mn and identified significant mineralisation at six prospects and have confirmed the potential for economic manganese resources. The company has determined an initial exploration target at Baramine of between 10 million tonnes and 15 million tonnes of manganese grading between 18 % Mn and 25% Mn. A scoping study is to commence in the December 2010 quarter with an outcome expected by mid-year 2011. A review of the drilling samples (257 RC holes) to assist with geological modelling and interpretation found that drillhole BRC241 in Area 3 (North) contained an additional strongly mineralised manganese zone. Further assaying on BRC241 has returned new deeper intervals of 18m @ 21.4% Mn from 73m, including 4m @ 25.8% Mn from 74m and 4m@ 33.6% Mn from 86m including 1m @40.2% Mn from 86m. Previously BRC241 was reported as containing only 3m at 13.1% Mn from 63m and 3m at 22.9% Mn from 73m. The recent drill program in Area 3 South, identified manganese mineralisation including 5m at 27.6% Mn from 57m in BRC248 and 2m @ 27.1% Mn from 40m in BRC246, from targets generated using XTEM airborne time-domain geophysics. Following this success, a one square-kilometre (1km2) fixed loop EM survey was commissioned to follow up the discovery at BRC248 and surrounding mineralised trends. This survey was completed on Friday 3 December and results of the survey are expected to be available late in December 2010. New targets generated from this survey will be integrated into the planned drilling program at Baramine in 2011. Samples from eight drillholes from separate mineralised areas are currently being tested at Nagrom Laboratories in Perth. Testing includes wet screening, Dense Media Separation (DMS) and wet tabling (for fines recovery). Final results are expected before the end of December 2010. Shaw River expects these results to assist developing an economic model for Baramine. The company is using the data from the current drilling results to evaluate the economics of extracting high grade (+40% Mn) manganese products from the known mineralisation by simple mechanical beneficiation. Beneficiation of manganese ores is common practice globally and results in a high value product. Shaw River is seeking to define large-scale manganese resources at Baramine to pave the way for a long-life mining operation. Activity over the coming months will focus on delivering this outcome, which is expected to provide investors with regular newsflow including beneficiation test results from RC holes, a 1,000 metre diamond drilling program in early 2011 and 15,000 to 20,000m of RC drilling in early 2011 which will target the conversion of the Baramine Project exploration target to mineral resources. Shaw River also expects results from economic studies and Heritage, environmental and mining application processes. Shaw River offers excellent exposure to manganese, critical to the global steel industry. The startegic metal offers investors the benefits of a high unit sale price, strong global demand and low capital and time costs for the development of feasible projects. Along with Baramine, in the remainder of 2010 and into 2011, Shaw River will aggressively advance its projects at its Butre (Ghana) and Skull Springs (Pilbara). Shaw River is maintaining its active manganese project acquisition strategy as it continues to build its manganese project pipeline. Shaw River’s largest shareholder, Atlas Iron (45.4%), is a strong supporter of Shaw River’s manganese strategy. SRR has a market capitalisation of A$27.91 million and had A$2 million cash at the end of the September quarter.