Simone Grogan
10 March 2022
Business News
Shares in the Subiaco-based company were up as much as 20 percent in early trade after adding substantial tonnage to its core manganese asset in East Pilbara. Firebird Metals reported a 170 percent – or 108 million tonne – increase to the Oakover project’s mineral resource which now sits at 172 million tonnes at 9.9 percent manganese with an 8 percent cut-off. That’s compared to a previous historical resource of 64 million tonnes at 10 percent resource, which also previously had a lower cut-off grade at 7 percent. Firebird managing director Peter Allen said the result opened the door to potentially establishing a 20-year manganese production hub in WA.
“This resource has come in well beyond our expectations and speaks volumes to the broader potential of Oakover,” Mr Allen said. “
The size of the MRE upgrade provides us with a compelling opportunity to pivot from our current Rapid Development Program strategy and focus instead on completing the relevant studies to assess Oakover as a 20+ year operation, producing both manganese ore and higher-value manganese sulphate.” On the back of result, the company said it is looking to assess what a manganese operation in the state might cost.
“We think the size of the resource and simple near-surface gently dipping geology provides a simple pathway to production that now warrants financial assessment that is anticipated to ultimately deliver superior value to shareholders.”
Firebird’s recent substantial drill program has left it with about $1.6 million in the bank as at December end, but the company has previously indicated it is confident in raising further funds as required. Firebird is set to commence scoping studies shortly, with its manganese ore study expected in the June quarter. Today’s upgrade was supported by a 233-hole drill infill and extension drill program covering 10,145 metres during the latter half of 2021. Oakover comprises three deposits in Pilbara’s East, Sixty Sixer, Karen and Jay Eye. Sixty Sixer is believed to contain 109.4 million tonnes of manganese, accounting for most of the project’s resource. Karen delivered a maiden mineral resource of 40.9 million tonnes at 9.5 percent, while Jay Eye was appraised at 21.9 million tonnes. As at June 2021, there were only two active manganese mines in Western Australia.
Namely, Ningxia Tianyuan Manganese Industry Co’s (TMI) Woodie Woodie operation and Element 25’s Butcherbird project. Firebird Metals shares are up 11.5 percent to trade at 34 cents at 2:33 pm AEDT.
https://www.businessnews.com.au/article/Firebird-flies-on-Oakover-upgrade
