The Butcherbird Project hosts a large manganese resource with a current JORC estimate covering part of the known mineralised zone of 64.7 M tonnes @ 11.2% Mn. There are numerous manganese occurrences nearby at an early stages of drilling with encouraging results.
|Cut off||Tonnes (Mt)||Mn (%)||Si02||Fe(%)||P205||A1203|
A Scoping Study has been completed by independent consultancy Engenium Pty Ltd. The study investigated the development of a mine producing between 0.5 Mt and 1 Mt per annum of lump and chip ore grading a nominal 36% Mn with a mine life of at least 10 years.
|Production||Capex $M||Sales Mt||NPV $M||IRR %|
|10 YEAR MINE LIFE|
|20 YEAR MINE LIFE|
Yanneri Ridge Financial Analysis Summary
The scoping study assumed the following:
- Conventional open pit mining with a 1:1 waste to ore ratio.
- Extractable Mn product of 12.8 Mt @ 36% Mn.
- Mine life of 10 years with options to expand to 20 years with further resources.
- Rate of production of either 0.5 Mt per annum or 1.0 Mt per annum.
- Production of lump and chip products as determined from DMS studies.
- Transport of product via the Great Northern Highway to Port Hedland for a total distance of 580 km.
- Camp size of either 125 persons for 0.5 Mtpa or 150 persons for 1.0 Mtpa scenarios.
- Mining to be undertaken by a contractor.
- rocessing to be undertaken by Montezuma Mining Company Ltd.
- Long term manganese price of USD $5.40/dmtu.
- Long term exchange rate of $0.80 USD/AUD.
- CAPEX including all direct and indirect costs of building the mine and start-up operations.
Metallurgical test work has shown that the manganese mineralisation can be beneficiated using industry standard techniques to produce a concentrate grading 36% Mn, with <10% Fe, <0.1% P and <18% Si.
The manganese mineralisation occurs as flat lying sheets of supergene enriched manganiferous bands in weathered siltstones of the Ilgarari formation extending from surface to approximately 30m deep. The deposits are generally large and extensive and there are currently 10 individual manganese occurrences which have drill tested with a combined Exploration target of 150-200 million tonnes grading 10-15% Mn.