Black Canyon confirms high-grade manganese and iron in third batch of Wandanya assays. MD Cummins says 9 of 10 holes hit mineralisation. Maiden resource estimate due in coming months.
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Black Canyon (ASX: BCA) has confirmed high-grade manganese and iron hits in its third batch of assay results from resource definition and expansion drilling at the Wandanya project in Western Australia's north.
The drilling, focused on the central portion of the three-kilometre-long base case target, has continued to return consistent zones of high-grade stratiform manganese and iron mineralisation. Managing Director Brendan Cummins said additional resource expansion drilling has extended the base case manganese mineralisation 400 metres to the south.
"Resource definition drill results continue to demonstrate the significance of the Wandanya discovery with the latest assays confirming the predictability of shallow, thick and high-grade intervals of stratiform manganese and iron mineralisation," he said.
Cummins noted that since the first drill program at Wandanya, the company has reported assay results for 786 out of 929 holes drilled. The mineralisation intersection success rate stands at almost nine out of every 10 holes.
"The consistency of the high-grade results gives us great confidence in the grade and scale potential of the system which is exactly what you want for a development project," he said.
The company is awaiting the remaining assay results ahead of delivering a maiden mineral resource and initial financial evaluation for a dual commodity operation in the coming months.
Resource definition drilling has further highlighted direct shipping ore (DSO) potential. Iron ore drop tower tests completed by the company produced a high percentage (74%) lump product, averaging 59.7% iron, which typically commands a premium in the market. The central section is characterised by thick intervals of high-grade iron, with multiple drill holes intersecting thicknesses over 10 metres and up to 18 metres from surface.
A WA government exploration incentive scheme (EIS) co-funded detailed gravity survey is over 80% complete and should be finalised by mid-August. The gravity survey has been designed to test for deeper manganese targets potentially related to hydrothermal manganese mineralisation.
BCA shares were steady at 30.5 cents, giving the company a market cap of A$49.45 million.
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