Euro Manganese Inc (ASX:EMN) (CVN:EMN) (FRA:E06) rocketed 21% on updating its mineral resource estimate for the Chvaletice Manganese Project in the Czech Republic so that a 98.3% lion’s share of resources are in the measured category.
The multi-listed Canadian company revealed that its 2018 drilling program efforts had “confirmed outstanding consistency of manganese grade and mineralogy”.
The project’s total measured and indicated resources are now 26.96 million tonnes grading 7.33% total manganese and 5.86% soluble manganese.
Of these a significant 26.496 million tonnes are in the measured category and grade 7.32% total manganese and 5.86% soluble manganese.
Euro Manganese labelled the campaign a success and highlighted 98.3% of resources in its Chvaletice estimate were now in the measured category.
Euro Manganese president and CEO Marco Romero reported: “This milestone will provide a solid foundation for detailed planning of the tailings extraction and processing schemes, and drive the project economics in our upcoming preliminary economic assessment which we expect to release in early 2019.”
Romero highlighted the significant progress the company’s team had made during its metallurgical test work program this year.
“Our in-house team made significant progress in advancing its understanding of the Chvaletice deposit and in the planning and design of a technically-viable process flowsheet.
“By recycling the Chvaletice waste, we are targeting production of some of the highest purity electrolytic manganese metal and manganese sulphate monohydrate available in the world today.”
‘Consistent’ tailings drilled for more than 3,000 metres
Eighty holes were drilled during the company’s summer campaign which took in 1,509.5 metres.
Of these, 35-five vertical and 19 inclined 100-millimetre-diameter Sonic holes, totalling 1,409.5 metres, supplemented 80 holes drilled in 2017 for 1,679.3 metres.
Twenty-six mobile percussion drill holes, taking in 100 metres, were completed around the embankments of the tailings piles areas not previously sampled.
There were 3,188.8 metres from the 2017 and 2018 campaigns used in the resource update, with Euro Manganese reporting the “tailings material observed, sampled and analysed was generally consistent in terms of total and soluble manganese grades, and mineralogy.”
All the material found in the three Chvaletice tailings piles is now in the measured or indicated categories.
A breakdown of the high-confidence updated mineral resource estimate for Chvaletice Manganese Project in the Czech Republic
Euro Manganese president Romero today highlighted market conditions for manganese in his report to market.
Romero told Proactive Investors in October the company was leveraged to benefit from ‘extreme demand growth’ after the element had been previously neglected by markets.
The company president flagged the opportunity Euro Manganese’s flagship project presents in his Stocktube interview, calling it the largest manganese resource in Europe.
Romero said, “We are unique, we believe we are in possession here of a winner; a project that stands to be perhaps one of the best, one of the largest producers of very high-quality materials in a very green way — just where the market needs it.
“It is waste from an old mining operation which we intend to recycle, get the metals out of and at the same time — quite wonderfully — remediate the entire site and leave it in better condition that it is in today.”
Euro Manganese’s securities closed 4 cents, or 21.05%, up to 23 cents on the Australian Securities Exchange.