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Shaw River Manganese hits 46% DSO manganese at Baramine Project

Shaw River Manganese (ASX: SRR) has returned two intersections with grades of up to 46% manganese at its Baramine Project that indicate strong potential for a low capital, beneficiation operation.

The intersections are the highest achieved at the project to date and Shaw expects to release an initial Resource at Baramine in Western Australia’s Pilbara region in the fourth quarter 2011.

Highlights from Area 3 at Baramine include:

- 10 metres at 31% manganese (Mn) from 36 metres, including 1 metre at 37.2% Mn and 1 metre at 46.3% Mn;
- 6 metres at 28.8% Mn from 67 metres, including 1 metre at 46.4% Mn, (part of 3 metres at 39.7% Mn; and
- 5 metres at 22.8% Mn from 46 metres, including 2 metres at 30.4% Mn.

In addition, results from Area 4 at Baramine include 10 meters at 19.3% Mn from 91 metres, including 2 metres at 35.3% Mn (part of 6 metres at 25% Mn).

A 4 kilometre strike length zone has been identified for resource definition.

The current exploration target at Baramine is 10 million tonnes (Mt) to 15 Mt at 18 % to 25% Mn.

Baramine is located 70 kilometres north of the producing Woodie Woodie manganese mine and 270km East of Port Hedland, one of the world’s largest bulk port facilities.

The latest intersections come from the completed 10,000 metre reverse circulation drilling program at Baramine which highlight Baramine’s strong potential and Shaw River intends to proceed with resource estimation, drilling and beneficiation testwork.

Shaw River is seeking to define large-scale manganese resources at Baramine to pave the way for a long-life mining operation.

Manganese is a metal used in the steel industry and has no known substitute in modern steelmaking processes. Manganese ore offers investors the benefits of a high unit sale price, strong global demand and low capital and time costs for the development of feasible projects.

Earlier beneficiation test work using DMS (Dense Media Separation) indicated the ability of 20% Mn feed material from Baramine being able to produce a concentrate grading of 43% Mn and 10% Fe.

The drilling followed up earlier promising drilling results which identified a prominent corridor of manganese mineralisation known as the Area 3-Area 4 corridor.

The company is planning follow up drill programs including diamond drilling for beneficiation test work to infill and extend the discoveries at Area 3-Area 4.

A number of regional drilling targets have been defined and ranked through a re-interpretation of available geophysical and geochemical data including XTEM, gravity, rock chip and trenching data.

Follow up drilling during the 2012 drilling season will include drilling on these targets.

Early results from a geochemical survey over prospective lithologies have been strongly encouraging and supporting of the mapped trends within the Area 3 – Area 4.

The survey is currently being extended to cover the entire Baramine project area.

Economic studies will commence in the current quarter and heritage, environmental and mining application processes will commence following the release of an initial resource estimate.