Balfour Manganese Field (BMF)
Drilling across the BMF has been highly successful, delineating a Global Mineral Resource Estimate totalling 314Mt at 10.5% Mn containing 33.1 Mt of manganese, with the majority of the resource classified as Measured and Indicated. Importantly, a higher-grade component has been established, totalling 99 Mt at 12.9% Mn containing 12.8 Mt of Manganese. The Company has discovered the largest contained manganese deposits in Western Australia and the second largest in Australia.
KR1 and KR2 Deposits
The Company successfully completed an extensive reverse circulation drilling program at the KR1 and KR2 deposits within the Balfour Manganese Field. This delivered a significant Maiden Mineral Resource Estimate for a combined total of 103 Mt @ 10.4% Mn containing 10.7 Mt of manganese.
- KR1 of 79 Mt @ 10.0% Mn (100% Indicated)
- KR2 of 24 Mt @ 11.9% Mn (Inferred)
Scoping Study
In July 2024, the Company released positive results from a Scoping Study applied to the KR1 and KR2 deposits, based on the combined Mineral Resource of 103 Mt @ 10.4% Mn and ongoing metallurgical testwork. The Scoping Study was based on a 16 year mine life, with an average mining production rate of 3.0Mtpa, producing 12Mt of manganese concentrate over the Life of Mine (LOM). Production Targets of 48.2 Mt @ 10.9% Mn were estimated with the project generating on average A$46.1m annual operating cashflow over the Life of Mine.
Operating Cashflow
| Financial Performance Summary | Unit | LOM |
| Initial LOM | (years) | 16 |
| Total LOM Revenue | (A$ M, real) | 2,781 |
| Total LOM EBITDA | (A$ M, real) | 654 |
| NPV @ 8% – before tax | (A$ M, real) | 340 |
| IRR – before tax | (%, real) | 70% |
| Project Capital Expenditure | (A$ M, real) | 84 |
| Payback Period – before tax | (years) | <2 |
| Average Sales Price (LOM) | Product (A$/t) | 227 |
| $US/dmtu | 4.60 | |
| EX rate AUD:USD | $ | 0.67 |
| CI Cash Costs (CIF) | (A$/t, real) | 149 |
| $US/dmtu | 3.02 | |
| AISC (CIF) | (A$/t, real) | 166 |
| $US/dmtu | 3.38 |
Site Layout
Simple Flowsheet Design
Mineral Resource Estimates
The Mineral Resources at KR1 and KR2 are hosted in mostly outcropping manganese enriched shales and form topographically elevated features. The Mineral Resources defined at KR1 and KR2 have been estimated utilising RC drilling completed by Black Canyon comprising 112 holes for 3,419 m of drilling.
At KR1, the Mineral Resource estimate is based on drillholes on traverses completed on 200 m spaced lines and 100 m spaced drillhole centres. The drill data shows the manganese enriched shale geology and grades are continuous downhole and across strike, which supports the Indicated Mineral Resource classification at this drill spacing.
At KR2, the Mineral Resource estimate is based on drillholes on traverses completed on 200 m spaced lines and 200 m spaced drillhole centres. The drill data shows the manganese enriched shale geology and grades are continuous downhole and across strike, which supports the Inferred Mineral Resource classification at this drill spacing.
Summary of Mineral Resources for the KR1 and KR2 deposits across the Balfour Manganese Field, Nov 2023
Notes:
- Mineral resources reported at a cut-off grade of 11% Mn.
- Appropriate rounding has been applied.
- Refer to Appendix 1 JORC Table 1, Sections 1 to 3 and Appendix 2 for further details
Type section 7,475,900mN (looking north) showing the KR1 Mineral Resource model cells and drill holes coloured by Mn grade (%).
Type section 7,472,000 mN (looking north) showing KR2 Mineral Resource model cells and drill holes coloured by Mn grade (%).
The geology at KR1 can be separated into a number of primary units:
- Supergene enriched manganese shales often associated with a higher iron content that form a prominent ridge in the centre of the deposit, and typically extend from surface to 15 to 20 m depth.
- A thick and widely distributed manganiferous enriched shale unit that contains supergene (manganese) enriched shale located between surface and 25 m depth.
- At depth the fresh manganiferous olive to green shales of the Balfour shale persist with variable manganese enrichment.
- A non-manganese bearing laterite layer is well developed on the southern drill lines and gets progressively thicker to the south and west. The laterite contains up to 31% Fe, but is low in Mn (<1%).
- A calcareous-manganese shale is encountered at the north end of the deposit and is often mapped at surface. It has a laminated appearance, with carbonate and manganese bands as opposed to the more massive manganese shale observed in the south.
- Below the fresher manganiferous shales, an unmineralized green and brown laminated shale is encountered.
- An 80 wide dolerite dyke striking to the NNE bisects the deposit. The dyke is subvertical and separates the manganese enriched shales.
KR1 deposit JORC Mineral Resource Classification (>7% Mn)
The KR2 deposit appears to be geologically simpler than the KR1 deposit.
- The surface enriched manganese shales which are typically higher grade and maybe ferruginised to some extent and occurs from surface to 15 m depth.
- A thick and widely distributed manganiferous shale unit that contains the supergene (manganese) enriched shale located between surface and 30 m depth.
- At depth the fresh manganiferous olive to green shales of the Balfour shale persist but have a lower manganese grade.
KR2 deposit JORC Mineral Resource Classification (>7% Mn)
Flanagan Bore
The Company’s lead project since listing is the Flanagan Bore Project, part of the Carawine JV. The Company successfully increased the Mineral Resource Estimate (MRE) for Flangan Bore by 64% in November 2022 to 171 Mt @ 10.3% Mn containing 18Mt of manganese comprising:
- FB3 Deposit: 116 Mt @ 10.2% Mn (45% Measured and 55% Indicated)
- LR1 Deposit: 56 Mt @ 10.4% Mn (90% Measured and 10% Indicated)
The updated MRE was completed after a follow up drilling program was completed aimed at investigating extensions to mineralisation as well as infill drilling to increase the confidence of the Mineral Resource.
Manganese enriched shale has now been delineated from surface at the FB3 deposit extending over an area of 1200m x 1000m. The assays received from the May/June 2022 RC drill program completed at FB3 have confirmed the folded nature of the shales and manganese mineralisation that is plunging shallowly to the southwest.
Deeper drilling completed as part this infill phase have yielded much thicker intervals of mineralisation than previously encountered, which expanded the FB3 Mineral Resource Estimate and global mineral resources at Flanagan Bore as described below.
Significant results are listed below.
- 47m @ 13.6% Mn from 0m (FBRC231), including
- 23m @ 15.9% Mn from surface
- 39m @ 13% Mn from 2m (FBRC232), including
- 12m @ 15.8% Mn from surface
- 51m @ 12.3% Mn from 0m (FBRC239), including
- 18m @ 16.6% Mn from surface
- 36m @ 13.2% Mn from 0m (FBRC238), including
- 11m @ 16.5% Mn from surface
- 64m @ 10% Mn from 5m (FBRC255)
- 53m @ 10% Mn from 0m (FBRC247)
- 47m @ 11.2% Mn from 1m (FBRC242)
- 6m @ 24.1% Mn from 0m (FBR228)
Flanagan Bore mineralisation and Mineral Resource
The previous Mineral Resource (refer to ASX announcement 13 April 2022) at Flanagan Bore comprised 104Mt @ 10.5% Mn (Indicated) has been significantly expanded and upgraded to 171 Mt @ 10.3% Mn (58% Measured and 42% Indicated) containing 18 Mt of manganese (refer to ASX announcement 24 November 2022). This represents a substantial increase of 67 Mt of total tonnage and 7Mt of contained manganese from the previous Mineral Resource. This firms up the project’s significance on a global scale which is further enhanced by its location in a Tier 1 mining jurisdiction.
The Mineral Resources at LR1 and FB3 are outcropping, and form pronounced topographic features. The Mineral Resources defined at LR1 and FB3 have been estimated based on 516m of historic reverse circulation (RC) drilling from 2012, 4,312m (RC) drill program completed in December 2021 and 7436m (RC) drill program completed in June 2022.
The Mineral Resource Estimate is based on drill holes on traverses completed on 100m spaced lines and 100m drill hole centres. The drill data shows manganese grades are strongly continuous downhole and across strike, which has significantly improved the confidence in the estimate and supports the Measured and Indicated Mineral Resource classification. High-grade manganese mineralisation is encountered from surface at FB3 and LR1 with zones of continuous mineralisation typically between 20 to 40m thick.
Global Mineral Resource Estimate for FB3 and LR1 Deposits at Flanagan Bore November 2022
| Summary of Mineral Resources(1,3) | |||||||
| Deposit | Mineral Resource Category | Material (Mt)(2) | In Situ Mn (Mt) | Mn (%) | Fe (%) | Si (%) | Al (%) |
| FB3 | Measured | 52 | 6 | 10.5 | 10.4 | 16.9 | 4.3 |
| LR1 | Measured | 47 | 5 | 10.3 | 8.4 | 16.7 | 4.6 |
| Total | Measured | 100 | 11 | 10.4 | 9.4 | 16.8 | 4.4 |
| FB3 | Indicated | 63 | 6 | 10.0 | 9.6 | 16.8 | 4.4 |
| LR1 | Indicated | 8 | 1 | 11.3 | 9.4 | 6.9 | 1.8 |
| Total | Indicated | 71 | 7 | 10.1 | 9.6 | 15.7 | 4.1 |
| Grand Total | 171 | 18 | 10.3 | 9.5 | 16.4 | 4.3 | |
A shallow, high-grade subset of mineralisation has been delineated across the LR1 and FB3 Mineral Resources and presented in Table 2. At an elevated cut-off grade of 11% Mn the Mineral Resource estimate totals 40 Mt @ 13% Mn with 25 Mt @ 13.2% Mn now classified as Measured.
As the Company progresses the development and feasibility studies, having access to high grade manganese Mineral Resources from surface has the potential to add significant value.
High-grade Zone Mineral Resource Estimate from the FB3 and LR1 deposits at Flanagan Bore November 2022
| Summary of Mineral Resources(1,3) | |||||||
| Deposit | Mineral Resource Category | Material (Mt)(2) | In Situ Mn (Mt) | Mn (%) | Fe (%) | Si (%) | AI (%) |
| FB3 | Measured | 14 | 2 | 13.2 | 11.5 | 18.2 | 4.5 |
| LR1 | Measured | 11 | 1 | 13.1 | 9.7 | 16.8 | 4.5 |
| Total | Measured | 25 | 3 | 13.1 | 10.7 | 17.5 | 4.5 |
| FB3 | Indicated | 10 | 1 | 12.7 | 10.8 | 18.1 | 4.8 |
| LR1 | Indicated | 5 | 1 | 12.9 | 9.9 | 6.1 | 1.6 |
| Total | Indicated | 15 | 2 | 12.8 | 10.5 | 14.5 | 3.8 |
| Grand Total | 40 | 5 | 13.0 | 10.6 | 16.4 | 4.3 | |
Type section 278,430 mE mid-point (looking north-east) showing FB3 Mineral Resource model cells and drill holes coloured by Mn grade (%) (2x vertical exaggeration)
Metallurgical Testwork Delivers >30% Mn Grade
In June 2022, the Company announced highly promising results from initial metallurgical testwork, achieving concentrate grades of more than 30% Mn. A total of three composite samples (PQ3) were tested from across the LR1 and FB3 deposits where a higher-grade subset of the Mineral Resource Estimate comprising 33Mt @ 12.8% Mn (Indicated) has been defined (ASX release 13 April 2022). Preliminary discussions with commodity marketing specialists indicate that manganese concentrates with similar key characteristics to the potential ore processed at Flanagan Bore would be suitable for silico or ferro manganese alloying as feedstocks into the steel manufacturing industry.
Further engagement with a number of commodity traders and other interested parties will continue as the Company refines it flowsheet to deliver a saleable manganese product.
Flanagan Bore Scoping Study
In August 2022, the Company released positive results from a Scoping Study at Flanagan Bore, based on the increased Mineral Resources and metallurgical testwork. The Scoping Study was based on a plant throughput of 1.8Mtpa, producing 500ktpa manganese concentrate per annum over an initial 20 year mine life.
Key Metrics
| Production Target (total) | 19.8Mt @ 12.9% Mn |
| Initial Mine Life | 20 Years |
| Annual concentrate production | 500kt |
| Project Capital Expenditure | A$44 million |
| Payback Period | <2 Years |
| Total LOM Revenue | A$2,282 million |
| Total LOM EBITDA | A$420 million |
| AISC (CIF, A$/t Mn conc) | 192 |
| NPV8 (before tax, real) | A$134 million |
| IRR (before tax) | 67% |
Proposed site layout – Flanagan Bore
Additional Targets Defined at Flanagan Bore
The manganese mineralisation at Flanagan Bore related to the LR1 and FB3 deposits is associated with regional northeast trending open synclinal fold. Additional manganese-enriched shale units have been identified along the limbs and have not been systematically drill tested. The fold appears to be semi-continuous along 10 km of strike from LR1 to around the nose at FB3 and associated fold limbs to FB5 and FB6.
These targets are summarised below:
- L1 and TF1 Prospects: located along strike to the east of the LR1 deposit and extending to FB3 the L1 and TF prospects have historically drill tested with 4 drill holes and more recently 4 holes the Company completed from the December 2021 drill program. The results have been encouraging and similar to those already drilled into LR1 and FB3 but there remains 2000m of strike that requires more systematic drill testing.
- FB1/FB2 Prospects: as reported to the ASX on the 10 June 2021 and 23 March 2022 the RC drill results received from FB1 showed a range of widths and manganese grades consistent with those encountered at LR1 and FB3. The mineralisation is related to a folded manganese shales with the thicker more prominent bands of manganese-enriched shale forming topographic rises. The structural complexity at FB1 maybe responsible for enhancing the manganese grade and the target requires further evaluation.
- FB5/FB6 Prospects: as reported on the 23 March 2022 a single line of RC drilling was completed at FB5 targeting outcropping and sub-cropping manganese-enriched shale. The drill holes confirmed the northwest dipping manganese enriched shale with a cross strike width of at least 400m intersected. The drilling completed at FB5 has only tested a small section of the 5km long zone of mapped manganese mineralisation that extends to the southwest towards the FB6 prospect. On this basis the target area has high potential to form a substantial zone of manganese enrichment.
The Company is looking forward to drill testing these targets in the next phase of exploration to improve the tonnage potential understanding Flanagan Bore.
Balfour East and Damsite Deposits
The Company successfully completed an extensive reverse circulation drilling program at the Balfour East and Damsite deposits within the Balfour Manganese Field. This delivered a significant Maiden Mineral Resource Estimate for a combined total of 40 Mt @ 11.9% Mn containing 4.7 Mt of manganese.
The Mineral Resources at Balfour East and Damsite are hosted in mostly outcropping and sub cropping manganese enriched shales and form subtle topographically elevated features. The Mineral Resources defined at Balfour East and Damsite have been estimated utilising a subset of the RC drilling completed by Black Canyon, comprising 84 holes for 2,896 m of drilling.
At Balfour East, the MRE is based on two traverses perpendicular to one another that were designed to follow-up the long axis of the outcrop and provide two step out holes either side of the outcrop. The drill holes were completed on either 200 or 100 m spaced drill hole centres. The early-stage drill data shows the manganese enriched shale geology and grades are continuous downhole, along and across strike, which supports the Inferred Mineral Resource classification at this drill spacing. The mineralisation is open along and cross strike, but further drilling is required to confirm the extents.
At Damsite, the MRE is based on traverses completed on three north south oriented 200 m spaced lines and 100 m spaced drill hole centres. The drill data shows the manganese enriched shale geology and grades are continuous downhole, across and along strike, which supports the Inferred Mineral Resource classification at this drill spacing. The mineralisation is open to the north.
Summary of Mineral Resources for the Balfour East and Damsite deposits (BCA 100%) across the Balfour Manganese Field, December 2023
Notes to Table:
(1) Mineral resources reported at a cut-off grade of 7% Mn.
(2) Appropriate rounding has been applied.
(3) Refer to Appendix 1 JORC Table 1, Sections 1 to 3 and Appendix 2 for further details.
Long Section (looking northwest) showing the Balfour East Mineral Resource Estimate model cells and drill holes coloured by Mn grade (%).
Cross section 252,400 mE (looking west) showing Damsite Inferred Mineral Resource Estimate model cells and drill holes coloured by Mn grade (%).
The geology at Balfour East and Damsite are similar and can be separated into a number of primary units:
• The surface enriched manganese shales which are typically higher grade and maybe weakly to moderately ferruginised to some extent and occur from surface to 15 m depth.
• A thick and widely distributed manganiferous shale unit that contains the supergene (manganese) enriched shale located between surface and 30 m depth.
• At depth, the fresh manganiferous olive to green shales of the Balfour shale persist but have a lower manganese content.
Balfour East deposit manganese grade distribution projected to surface and JORC Mineral Resource Classification (>7% Mn)
Damsite deposit manganese grade distribution projected to surface and JORC Mineral Resource Classification (>7% Mn)
