Name of the Project
Butcherbird manganese project.

Location
The project comprises eight known manganese mineral resources in an estimated 600 km2 of the southern Pilbara region, in Western Australia.

Project Owner/s
ASX-listed Element 25.

Project Description
The project has proven and probable ore reserves of 50.55-million tonnes at 10.3% manganese containing 5.22-million tonnes manganese (4.28-million tonnes recoverable manganese).

The May 2020 prefeasibility study (PFS) presented a compelling base case and expansion case economics. Base case assumes production and sale of 312 000 t/y of medium-grade lump manganese concentrate grading 30% to 35% manganese.

The proposed 1.3-million-ton-a-year processing facility includes crushing, screening, scrubbing, sizing and ore sorting.

The project has a 42-year mine life.

The PFS also highlighted that the project has the potential for significant growth beyond the initial Stage 1 production volumes. The studies examined the potential for a 2 × and 3 × expansion to Stage 1 within 12 months of initial commissioning. The company expects to expedite the expansion of the project once Stage 1 is fully operational.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has an estimated pretax net present value, at an 8% discount rate, of A$441-million and an internal rate of return of 255%, with a payback of six months from the start of operations.

Capital Expenditure
The project has a low capital requirement of $14.5-million, plus $9.2-million in working capital.

Planned Start/End Date
The project construction and start of commissioning were completed within 11 months from the delivery of the prefeasibility published in May 2020.

Latest Developments
First ore has been successfully processed through the Butcherbird plant.

Element 25 reports that commissioning activities at the manganese mine site are progressing well, with the project team now fully focused on normal commissioning activities.

In-specification 30% to 35% manganese concentrate was successfully produced early in the commissioning process, and early indications were encouraging with respect to potential plant throughput.

Element 25 has said that several optimisation opportunities will be explored and minor engineering modifications are being implemented during the normal commissioning process to enhance plant availability, processing throughput and product quality.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Element 25, tel +61 8 6315 1400 or email admin@e25.com.au.