The additional drilling will provide infill data aimed at converting the inferred resources to indicated or measured categories to support the re-estimation of mine reserves. The increase in the “reserve tail” may open the project up to a wider range of potential financiers in addition to NAIF, who are currently undertaking due diligence2.
HIGHLIGHTS
The Project hosts a global resource of over 260Mt of manganese ore3 however the current reserves are limited to the areas which have been drilled out to a sufficient density to support measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme has been designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
Note: There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised.
At the completion of the programme, the new drilling combined with historical data will be used to recalculate the resource base to support a recalculation of the proved and probable reserves with the aim of supporting a longer mine life to support project financing activities for the Butcherbird Expansion Project.
The drilling programme is expected to take approximately four weeks. Samples will be submitted for assay and database integration, which will be immediately followed by a recalculation of resources and reserves.
Element 25 Managing Director Justin Brown said:
“This drilling programme will allow the global resource at Butcherbird to be recalculated with a higher degree of certainty which is expected to result in a signification conversion of inferred resources to measured and indicated which will support project financing by increasing the reserve tail beyond that covered by the existing 7.2 year mine life.”
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