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Shaw River Resources Limited (ASX:SRR) Maiden 6.8Mt Resource at Namibian Manganese Project

Maiden 6.8Mt Resource at Namibian Manganese Project
 
Shaw set to become major manganese producer in 2012 as the Otjozondu Project begins to reveal its immense potential
 
Highlights
 
- Maiden Inferred Resource of 6.8 million tonnes grading 23.1% manganese
- Grade can be increased to export standard by simple beneficiation
- Resource calculated on only 5% of the field’s known strike length of 144km, highlighting significant near-term upside.
- Feasibility study and infill drilling to start in April 2011
- Production scheduled to start in 2012, targeting a rate of 250,000tpa and growing to 500,000tpa.
 
Shaw River Resources Limited (ASX:SRR) is pleased to announce a maiden Inferred Resource of 6.8 million tonnes at its 75.5 per cent-owned Otjozondu (Otjo) Manganese Project in Namibia, putting the Company on track to become a significant manganese producer by 2012.
 
The Inferred Resource has an average grade of 23.1 per cent manganese (Figure 1 and Table 1 of the ASX announcement), which trial mining over the past 18 months has shown can produce an export-standard manganese product using a simple beneficiation process.
 
The current resource is expected to underpin at least the first five years’ production. There is also immense potential for further growth in this resource inventory given that the maiden resource covers only 7km of the identified manganese field, which has a strike length of 144km.
 
Shaw River currently has an exploration target at Otjo of 35Mt - 50Mt grading 23-27 per cent manganese.
 
ShawRiverwill start a feasibility study in April 2011 based on an initial production target of 250,000tpa of manganese product and include plans to ramp up production to 500,000tpa.
 
There is significant potential for a rapid increase in resources with additional drill-defined prospects at Ouparakane (0.9km strike), Ongorussengo (2.3km strike) and East Otjozondu (1.4km strike) not yet included in the resource base. Importantly, most of the drilling at Otjo does not extend below 85m deep, though high-grade manganese mineralisation is known to extend to depths in excess of 250m.
 
There is also further exploration potential beyond these prospects, with the historical 33,000m of drilling (22,000m of diamond drilling and 11,000m of RC drilling) covering just 15 per cent of the 144km of mapped strike extent at the total Otjozondu Manganese Field.
 
As a result, Shaw River has an initial exploration target at Otjo of 35Mt - 50Mt grading 23-27 per cent manganese.
 
The resource envelopes used in this calculation were modelled by Cube Consulting using drilling data and outcrop mapping data supplied by Shaw River Resources. Wireframe boundaries have been based on a nominal cut-off of 15%Mn. Resource Classification has been conducted by Adriaan du Toit of AEMCO PTY LTD Consultants, who has eight years experience in the Otjozondu Manganese Field.
 
Tables 2 and 3 of the ASX announcement show the details of the information used in the estimates as well as the number of holes not yet included in resource envelopes. Figure 1 of the ASX announcement shows the location of the Inferred Resources as well as the location of prospects not yet modelled, but that will form part of resource infill drilling and resource upgrades.
 
ShawRiverwill commence infill drilling in April 2011. This infill drilling is aimed at upgrading the classification of the existing resource and expanding the Inferred Resource to encompass all the currently known high-grade mineralized intersections.
 
“This initial Inferred Resource estimate is the first step in what will be an expedited timetable aimed at making Shaw River a significant manganese producer by next year,” Shaw River Managing Director Vincent Algar said.
 
“The Company is being supported strongly in this process by its two major shareholders, Atlas Iron and OM Holdings, both of which have extensive experience in the production of bulk commodities.”
 
“We are confident that the combination of the Otjo project and the support of these shareholders, among others, will see Shaw River join the very select ranks of listed manganese producers.”
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