Photo by: Bloomberg
PERTH (miningweekly.com) – An independent review into ASX-listed IronClad Mining’s Wilcherry Hill operation, in South Australia, has confirmed the project’s manganese potential.
Independent reviewer Arc Resources on Tuesday reported that IronClad’s most recent drilling campaign had intersected significant manganese at the Hercules East prospect, which added weight to the prospect of discovering significant manganese resources.
Work at the Pier Dam prospect had also shown encouraging results, with Arc noting that additional work in the area would enable IronClad to generate drilling targets.
“The potential to discover additional occurrences, and develop and exploit manganese on the IronClad tenements is highly feasible. The manganese complements the existing iron-ore, as well as the current plans to develop the mining and upgrade port infrastructure,” the Arc review read.
IronClad was developing the Wilcherry Hill manganese in a joint venture (JV) with fellow-listed Trafford Resources, under which IronClad would be required to complete 4 000 m of reverse circulation drilling within 12 months of the JV agreement being signed. The company would also have to pay A$250 000 on signing the agreement.
The ASX-listed junior could earn its first 50% in the project tenements by spending A$1-million within one year from the date of the agreement. An additional 30% interest could be earned if IronClad spent a further A$2-million over the following two years.
Upon IronClad reaching this milestone, Trafford’s shareholding in the project would be free carried up until a decision to mine, at which point Trafford could either contribute to expenditure or dilute its shareholding to a minimum 10% before converting to a 2% gross revenue royalty.