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Element 25 takes big step toward Butcherbird expansion with upgraded manganese resource

Published 29/10/2024, 12:30 pm
© Reuters.  Element 25 takes big step toward Butcherbird expansion with upgraded manganese resource

Element 25 Ltd (ASX:E25, OTCQX:ELMTF) has unveiled a whopping 142% increase in indicated and measured resources (MRE) at the wholly owned Butcherbird Manganese Project in Western Australia's Pilbara region.

The total mineral resource estimate (MRE) has also risen by 6% to 274 million tonnes at 10% manganese and, importantly, 47% of the global resource is now classified in the higher confidence measured and indicated categories.

“The updated mineral resource estimate is a very important step in our delivery of the planned Stage 2 Expansion Project for Butcherbird,” managing director Justin Brown said.

Longer mine life, reserve tail

“The increase in measured and indicated inventory is expected to support a significant increase in the mining reserve which will translate to a longer mine life and reserve tail, an important metric in financing the project.”

As the result of a recent infill drilling program, the Butcherbird Project’s measured and indicated categories have grown by 130 million tonnes at a grade of 10.23% manganese, which points to the scale and continuity of the deposit.

The latest upgrade includes contributions from the Yanneri Ridge, Coodamudgi, Richies Find and Mundawindi deposits.

MEC Mining was commissioned to provide updated estimates that incorporate recent drilling data.

The new resource figures aim to extend the current mine life, with mine pit optimisation and scheduling activities underway to underpin an updated ore reserve statement.

Targeted campaign

Since acquiring Butcherbird, Element 25 has conducted a targeted campaign of works, including more than 1,400 metres of underground development and 40,000 metres of diamond drilling.

Drilling programs have been conducted across the project over a long span of time, from 2010 to 2024.

E25 completed 717 drill holes for 25,493 metres for inclusion in the October 2024 update to its MRE, including reverse circulation and aircore holes.

Diamond drill holes were used to support geological interpretations but the assays were not used for estimation.

About Element 25

Element 25 is an Australian-listed company advancing its 100%-owned Butcherbird Manganese Project in Western Australia, with expansion underway to increase production to 1.1 million tonnes per year of medium-grade, high-silica manganese ore for both traditional and emerging energy markets.

In parallel, the company is pioneering proprietary technology to produce high-purity manganese sulphate monohydrate (HPMSM) for electric vehicle (EV) batteries.

Element 25 plans to build its first HPMSM refinery in Louisiana, USA, supplying the US EV market in collaboration with General Motors (NYSE:GM) and Stellantis, as part of its goal to establish itself as a leading low-carbon battery materials manufacturer.

Read more on Proactive Investors AU

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