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Bryah Resources (ASX:BYH) - Managing Director, Neil Marston - The Market Herald
Managing Director, Neil Marston
Source: Proactive Investors
  • Metals explorer Bryah Resources (BYH) has discovered zones of potentially shipping-grade manganese at the Bryah Basin in central WA
  • A recent program of reverse circulation (RC) drilling across four prospects was aimed at new discoveries, and extending known mineralised zones
  • The promising new results come from the Black Hill and Brumby Creek prospects, with extensions to high-grade, shallow manganese mineralisation
  • Bryah has a significant amount of permitting and environmental work to do, though the company is hoping to fast-track applications for Brumby Creek and Black Hill
  • The company will lodge mining lease applications once the supporting documentation is completed
  • Joint venture partner OMM is likely to spend $2 million for further exploration as part of the farm-in agreement to gain a 51 per cent stake of the Bryah Basin project
  • Bryah Resources is up 42.9 per cent today, with shares trading for six cents each, while OMM shares are up 4.1 per cent to 38 cents each

Metals explorer Bryah Resources (BYH) has discovered zones of potentially shipping-grade manganese at the Bryah Basin in central WA.

High-grade intersects

A recent program of reverse circulation (RC) drilling across four prospects was aimed at new discoveries, and extending mineralised zones previously intersected in the company's 2019 drilling program.

The promising new results come from the Black Hill and Brumby Creek prospects, with evidence of extensions to high-grade, shallow manganese mineralisation located last year.

A number of holes across the two prospects intersected grades above 30 per cent manganese – the lower limit for direct shipping-grade manganese.

14 holes were drilled at Brumby Creek for a total of 294 metres, with a best intersection of 10 metres at 31.1 per cent manganese, including three metres at
41.0 per cent from 34 metres.

The mineralised zone is still open along strike top the south, which will be further tested with follow-up drilling.

Anomalous cobalt up to 1310 parts per million was also detected, which is believed to be part of the supergene manganese mineralisation. Bryah says this requires further investigation.

The Black Hill prospect shows consistently higher grades than Brumby Creek, but the zone is restricted to a smaller mesa cap outcropping.

The nine-hole program for 78 metres had several promising intersections, with four holes returning four-to-six metre samples of over 30 per cent manganese.

Bryah believes the recent program was sufficient to define the mineralised zone. The company will next assemble a detailed topographic model to assist in the preparation of a mineral resource estimate.

Drilling results from the Mount Labouchere prospect and Horseshoe South mine are expected next week.

Horseshoe South lies within an already-granted mining lease. Previous mining at Horseshoe ceased in 2011.

Ores produced had been crushed and screened to produce some direct shipping-grade ore, while lower-grade material was beneficiated via a dense media separation plant.

Bulk samples collected from Horseshoe South are set to undergo beneficiation test work.

Mount Labouchere results will be used to plan for further exploration at the site.

Bryah Managing Director Neil Marston says the company is pleased with the results so far.

"We are very encouraged with the latest drilling results, in particular the new high-grade manganese zone discovered under shallow cover at the Brumby Creek prospect," he said.

"These grades and thicknesses of mineralisation demonstrate that the manganiferous Horseshoe Range, most of which is under our joint venture’s tenure, has the potential to host significant tonnages of shallow high-grade manganese."

Managing Director, Neil Marston

"Manganese ore prices have recovered significantly recently, which augurs well for us as we develop a pathway to production," he added.

Next steps

Bryah has a significant amount of permitting and environmental work to do, though the company is hoping to fast-track applications for Brumby Creek and Black Hill.

Work has already started on environmental flora studies, as well as mineral interpretation and resource estimates.

The company will lodge mining lease applications once the supporting documentation is completed.

Joint venture

The Bryah Basin joint venture (JV) covers approximately 660 square kilometres.

In April 2019, Bryah executed a farm-in JV agreement with OMM, a wholly-owned subsidiary of ASX-listed OM Holdings (OMH).

OMM spent $500,000 on the 2019 drilling program, and the JV was formed following OMM's payment of a further $250,000 exercise fee, based on the promising results.

Phase two of the JV agreement could see OMM gain up to a 51 per cent stake in the project by funding a further $2 million in exploration through four $500,000 payments by mid-2022.

Having completed the first payment, OMM now has a 20 per cent stake in the Bryah Basin project.

Bryah Resources is up 42.9 per cent today, with shares trading for six cents each, while OMM shares are up 4.1 per cent to 38 cents each as at 12:30 pm AEST.


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