Perth-based junior miner, Bryah Resources Limited, has signed a AU$7.3 million manganese Farm-In agreement and executed a Joint Venture Agreement with OM Holdings Limited – a strong player in the manganese industry.
Bryah Resources Limited is a copper-gold-manganese focused explorer with two projects located in central Western Australia – the 880 square kilometre Bryah Basin Project and the 200 square kilometre Gabanintha Project.
OM Holdings Limited is a vertically integrated manganese and silicon specialist involved in mining, smelting and trading, with operations located in Australia, China, Japan, Malaysia, Singapore and South Africa. In Australia, OM operates the Bootu Creek manganese mine in the Northern Territory.
The objective of the Joint Venture (JV) is to explore for commercially minable manganese, leading to near term production. The agreement applies to approximately 660 square kilometres of the company’s Bryah Basin Project in central Western Australia. The JV only applies to Manganese Mineral Rights.
The Bryah Basin Manganese JV includes the historic Horseshoe South Manganese Mine – the largest historical manganese mine in the region – and several other manganese prospects. Bryah is the Project Manager until OM has earned a 51 per cent JV interest (after this OM may elect to be Project Manager). Under the Agreement, Bryah has received a Signing Fee payment of $250,000 from OM, in which the company will use for its own working capital purposes. OM is set to provide $500,000 to fund manganese exploration activities managed by Bryah up to 30 June 2019. A second $250,000 payment to Bryah will be made by OM in July 2019 should OM wish to proceed with further exploration.
Stage 1 drilling (3,000 metres) is to commence in the first week of May 2019.
In commenting on the news, Bryah Resources’ managing director, Neil Marston said the execution of this agreement is a game-changing event for Bryah and its shareholders.
“The OMH Group has manganese mining expertise and is seeking new sources of manganese ore to replace its Bootu Creek production in the near future. This means that we are both strongly aligned to Bryah’s stated aim of moving from explorer to manganese ore producer in the near term,” he commented.
The Horseshoe South Manganese Mine:
In May 2018, Bryah secured an option to purchase the historic Horseshoe South Manganese Mine, as well as the rights to prospect, explore, mine and develop manganese ore covering a total of 154 square kilometres of ground owned by Austsino Resources Group Limited. These optioned areas are included in the Agreement with OM.
The Horseshoe South mine has produced approximately one million tonnes of high-grade manganese ore from 1948-1969 and 2008-2011.
The mine lies on a granted mining lease which means that, subject to successful drilling and feasibility studies, obtaining approvals to re-start mining operations should be achievable in a relatively short timeframe.
Recent rock chips from the lease have assayed up to 48.8 per cent manganese. Drilling is planned to test outcropping areas and extensions of an existing pit on the lease.
More information on the Agreement can be found here.