Nov 14, 2024

Black Canyon Reports 5m @ 31.1% Mn at Wandanya Project, Western Australia

Introduction:

Black Canyon Limited (ASX: BCA) (Market Cap: $5.5M | Last Close: $0.063) has reported high-grade manganese results from reverse circulation (RC) drilling at its Wandanya Project in Western Australia, highlighted by 5m @ 31.1% Mn from surface, including 2m @ 42% Mn.

Drill Results:

5m @ 31.1% Mn from surface, including 2m @ 42% Mn (WDRC005)
7m @ 28.3% Mn from 6m, including 5m @ 34.9% Mn (WDRC007)
7m @ 26.3% Mn from 2m, including 3m @ 38.2% Mn (WDRC013)
6m @ 26.3% Mn from 4m, including 3m @ 40.1% Mn (WDRC021)
6m @ 29.6% Mn from surface, including 3m @ 41.0% Mn (WDRC031)
6m @ 29.2% Mn from 4m, including 3m @ 39.7% Mn (WDRC032)‍
5m @ 32.4% Mn from 3m, including 3m @ 40.1% Mn (WDRC033)

Project Overview:

The Wandanya Project is located in Western Australia, approximately 80km south of the Woodie Woodie mine site. The W2 Prospect, where drilling was conducted, is part of a 3,000m long manganese corridor. The current drill program tested only 240m of strike length within this corridor.

The project is part of Black Canyon's larger 2,100km2 land holding in the Balfour Manganese Field and Oakover Basin. The company has defined a Global Mineral Resource of 314 Mt @ 10.4% Mn across its Balfour Manganese Field projects.

Program Details:

The maiden drill program at the W2 Prospect comprised 35 holes for 642m of drilling on an approximate 40m x 40m grid. The mineralization is described as shallow, flat-dipping, and stratabound, with all intersections encountered within 15m of surface and most within 10m. The footwall and hangingwall units consist of dolomite and calcareous siltstone, underlain by a black sulphidic shale.

Understanding These Results:

The drill results indicate consistent thickness and grades of manganese mineralization. Of the 35 holes drilled, 25 intersected mineralization over 20% Mn, which the company considers a high success rate for a first-pass program.

Management Commentary:

Brendan Cummins, Black Canyon's Managing Director, stated:

“The Company is extremely pleased with the final drill assays from the W2 high-grade manganese target. Of the 35 holes drilled, 25 holes intersected mineralisation over 20% Mn, a fantastic success rate for a first pass program.”

“Even at this early stage, with these final drill assays in hand, we are now beginning to appreciate the significant potential of the W2 Prospect. We have mapped the mineral system at W2 for over 3000m and these assay results have tested only 240m, or less than 10%, so the lion’s share of potential remains both along strike and significantly down dip.”

“The W2 Prospect represents a shallow and potentially open pittable target, with all of the manganese drill intersects encountered to date within 15m of surface and most within 10m. The flatdipping stratabound mineralisation will benefit follow-up drill programs by reducing exploration risk and importantly minimising drill costs to keep our discovery costs low.”

“What I find most appealing about the Wandanya Project though, is its simplicity. To date it has been quite predictable in terms of grade and thickness and now with surface mapping completed there is potential to demonstrate scale to this discovery.”

Next Steps & Catalysts:

Black Canyon plans to conduct follow-up mapping and rockchip sampling to assist with planned drilling programs down dip and along strike. This work aims to understand and quantify the footprint of this new style of high-grade, stratabound manganese mineralization.

Initial metallurgical testwork is being planned to examine the potential to produce a high-quality manganese concentrate for silico or ferro alloying and high purity manganese sulphate (HPMSM) testwork.

Commodity Outlook:

Manganese continues to have attractive long-term fundamentals as it is essential and non-substitutable in the manufacturing of alloys for the steel industry. It is also a critical mineral in the cathodes of Li-ion batteries, supporting its demand in the growing electric vehicle and energy storage markets.

Conclusion:

The high-grade manganese results from the W2 Prospect at the Wandanya Project demonstrate potential for Black Canyon. With only a small portion of the identified manganese corridor tested so far, there is an opportunity for resource expansion. The project's shallow, consistent mineralization and proximity to existing infrastructure position it strategically.

Sources:

BCA Drill Result Announcement

Additional Figures:

Australia

ASX

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Nov 20, 2024