Black Canyon Limited (ASX:BCA) Announces KR2 Infill Drilling Results
Operational Achievements
Black Canyon Limited (ASX:BCA) has completed its Reverse Circulation (RC) infill drilling program at the KR2 Prospect within the Balfour Manganese Field (BMF) project. The drilling program returned several thick zones of manganese-enriched shale, including notable intercepts such as 36m @ 12.9% Mn and 36m @ 15.5% Mn. The infill drilling, conducted with a 100m x 100m spacing, aims to upgrade the current KR2 Inferred Mineral Resource of 24Mt at 11.9% Mn to a higher confidence Indicated classification.
Resource Update
The KR2 infill drilling results support the potential to upgrade the mineral resource classification, which was integral to the KR1 and KR2 Scoping Study. This study reported a pre-tax NPV of $340m and an IRR of 70% over a 16-year mine life. Upgrading KR2 to the Indicated category will allow Black Canyon to consider using the high-grade, shallow tonnes earlier in the mining schedule, potentially enhancing cash flows and improving the project’s economic metrics.
Future Outlook
Black Canyon is now working with consultant resource geologists to update the KR2 Mineral Resource Estimate. Following this, the company will review the mine schedule and update the Scoping Study financial metrics, with results expected in Q2 2025. Further RC drilling at Wandanya is planned to target high-grade manganese and iron areas, alongside a Heritage Survey scheduled for the end of March.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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