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Bryah Resources (ASX:BYH) - Managing Director, Neil Marston - The Market Herald
Managing Director, Neil Marston
Source: Small Caps
  • Manganese explorer Bryah Resources (BYH) has released its quarterly report for the June 2020 quarter
  • Much of the company's quarter was spent conducting exploration and drilling activities at its Bryah Basin Gold-Copper Project in WA
  • Bryah conducted a 116-hole drilling program at the Mount Labouchere, Brumby Creek and Black Hill prospects within the Horseshoe South Manganese Mine
  • This mine is held as part of a joint venture with OM Holding's subsidiary, OMM
  • The joint venture began in April last year and would see OMM spend over $2 million to gain a 51 per cent interest in Horseshoe South
  • During the quarter, OMM committed to funding $500,000 to increase its inerest to 30 per cent
  • Bryah ended the quarter with $1.82 million compared to $1.13 million at the end of the March quarter
  • Company shares are trading for 4.35 per cent at 6.6 cents each

Manganese explorer Bryah Resources (BYH) has released its quarterly report for the June 2020 quarter.

Exploration activities

Bryah Basin Gold Copper Project

The Bryah Basin Project covers an area of roughly 1135 square kilometres in central Western Australia.

The project is situated near several mining operations and covers large areas of under-explored ground adjacent to the Horseshoe Lights copper-gold deposit.

The Bryah Basin also has several historical and current manganese mines including the recently acquired Horseshoe South Manganese Mine.

During the June quarter, a short phase of reverse circulation (RC) drilling was conducted at the Windalah Prospect. This drilling aimed to test for shallow extensions of the high-grade gold mineralised zone that Bryah intersected in 2018.

The three-hole program intersected 12 metres at 4.32g/t gold from surface, including two metres at 17.19g/t gold from three metres.

Planned activities

At the start of this month, Bryah commenced a 2000-metre RC drilling program which is ongoing.

The program is initially targeting the high-priority Windalah Prospect and an electromagnetic (EM) conductor located seven kilometres north of the Peak Hill Gold Mine and 65 kilometres west of Sandfire Resources' DeGrussa Miine.

A down-hole EM (DHEM) survey will be conducted one the drilling program has been completed.

Throughout the year, RC and aircore drilling will also target the Mars, Wongawar, Fortnum East and Windalah East prospects.

Joint venture

In April 2019, Bryah entered a farm-in and joint venture agreement with OM Holdings' subsidiary, OMM.

Between April and August 2019, OMM funded $500,000 for exploration which yielded highly encouraging manganese drilling results.

In August, OMM secured an initial 10 per cent interest in the joint venture following the payment of a $250,000 exercise fee.

The joint venture agreement includes the Horseshoe South Manganese Mine. This mine is the largest historical manganese mine in the region. Other prospects including Brumby Creek, Black Hill, Mudderwearie and Devils Hill, Cheval and Black Beauty are also part of the joint venture.

Under stage two of the agreement, OMM can choose to progressively fund the next $2 million for exploration in four tranches of $500,000 each to earn up to a 51 per cent interest by June 30 2022.

In June this year, OMM increased its interest from 10 per cent to 20 per cent when it provided $500,000 in funding under tranche one.

OMM has formally chosen to increase its interest to 30 per cent under tranche two by funding an additional $500,000.

Bryah will remain as the project manager of the joint venture until OMM has earned a 51 per cent interest and elects to be the project manager.

Exploration activities

Bryah Resources conducted a 116-hole RC drilling program, for 1680 metres, at the Mount Labouchere, Brumby Creek and Black Hill prospects within the Horseshoe South Manganese Mine.

Drilling was aimed at testing for extensions of high-grade manganese mineralisation that was previously intersected in 2019.

Significant results include 10 metres at 31.1 per cent manganese from 29 metres including three metres at 41 per cent manganese from 34 metres at Brumby Creek.

Manganese mineralisation is open along strike to the south, where additional drilling will be targeted in the next program.

At Black Hill, high-grade manganese mineralisation is largely restricted to an outcropping mesa cap. The latest grades confirm last year's results and are sufficient to define the extent of the hilltop mineralisation.

At the Horseshoe South Extended Pitt area, 17 holes were drilled to test for mineralisation extensions.

Hole HERC044 recorded the best results with grades exceeding 35 per cent manganese recorded within a 19 metre-wide zone of mineralisation from 17 metres down depth.

Three holes drilled at the northern end of the pit recorded wide zones of manganese beneath the historical drilling. This confirmed the potential for additional mineralisation to exist below the current pit floor.

The company will undertake further drilling within the open pit to extend the mineralised zones.

Drilling at the Horseshoe South Main Pit resulted in an intersection of four metres at 40.9 per cent manganese from nine metres. This result confirmed the potential for shallow high-grade manganese within the mining lease and in the broader project area.

Drilling at Mount Labouchere showed there aren't any significant extensions of manganese beyond the outcropping area. Positively, however, the samples assays showed copper and cobalt anomalism. As a result, Bryah will further investigate this.

Finance

On June 12, Bryah Resources received binding commitments for a $1.55 million placement of 31 million shares at five cents each. The funds are being applied to exploration activities at the high priority gold and copper prospects in the Bryah Basin Project.

On June 30, Bryah had $1.82 million in cash, compared to $1.13 million on March 31.

The $1.82 million excluded the $250,000 provided by OMM and held on behalf of the Bryah Basin Manganese Joint Venture.

Company shares are trading for 4.35 per cent at 6.6 cents each at 3:29 pm AEST.


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