BCA - Black Canyon

[System]

Black Canyon has secured an option from ASX listed Carawine Resources Limited to acquire a majority interest in the Carawine Project in the East Pilbara region of Western Australia via a farm-in and joint venture agreement. The Carawine Project covers approximately 793 Km² of tenure located south of the operating Woodie-Woodie manganese mine, providing a large footprint in a proven and producing manganese belt. Black Canyon has also applied directly for another exploration license adjacent to the Carawine Project that will increase the total land holdings to over 1400 Km². Manganese has attractive fundamentals with growing utilisation in the battery mineral sector and dwindling supply.

In addition to Carawine, the Company has also agreed to acquire Zephyr Exploration Pty Ltd that has applied for exploration tenure over an area of 206 Km² at the Lofty Range Project located 30 km west from ASX listed Element 25's Butcherbird Manganese Project. Element 25 is currently developing the world class Butcherbird deposit to produce high quality manganese concentrate and High Purity Manganese (HPM) products for traditional and new energy markets.

Both the Carawine Project and Lofty Range Project (subject to grant) are highly prospective for manganese and have similar geological settings to Butcherbird. Black Canyon will look to identify new deposits through exploration and discovery on its project areas. Existing high-quality datasets have shortcut the exploration lead-time and drill ready targets have already been identified based on previous drilling, geophysical surveys and known near-surface manganese occurrences. The cost-effective proposed exploration drill programs will target shallow mineralisation with potential to delineate mineral resources.

In addition to manganese, the Carawine Project also hosts multiple copper occurrences including the Western Star prospect, a large zone of surface copper enrichment identified over an area 500m x 500m by shallow historic workings and exploration costeans. A limited amount of previous drilling at Western Star returned significant copper intersections with no follow-up completed to date.

It is anticipated that BCA will list on the ASX during April 2021.

Black Canyon - Black Canyon Limited

blackcanyon.com.au

 

[Dona Ferentes]

Listing date	15 March 2021 #
Contact details	Black Canyon - Black Canyon Pty Ltd blackcanyon.com.au 08 9486 4036
Principal Activities	Mining exploration
GICS industry group	TBA
Issue Price	$0.20
Issue Type	Ordinary Fully Paid Shares
Security code	BCA
Capital to be Raised	$5,000,000
Expected offer close date	1 April 2021
Underwriter	Not underwritten. Taylor Collison Limited (Lead Manager)

 

[Dona Ferentes]

And up... Manganese in the Pilbara.

...if the new reserves figures hold true after more work, it will more than double Australia’s known reserves of manganese.

In the ASX statement, Black Canyon announced the further upgrading of the size of mineral resource and contained manganese at its Flanagan Bore manganese prospect in the eastern Pilbara region of Western Australia to more than 100 million tonnes of ore resource which has an estimated 11 million tonnes of contained manganese.

 

[Dona Ferentes]

pushing up to 50c after yesterday's 25% rise.

Flanagan Bore is part of the Joint Venture with Carawine (CWX) and is subject to a farm in and joint venture agreement with Carawine Resources. Having earned a 51% interest, Black Canyon said yesterday it is now earning up to 75% in the Carawine Project tenements by sole funding an additional $2.5 million of exploration expenditure.

Black Canyon Executive Director, Brendan Cummins, said in Wednesday’s ASX statement:

“In my experience, this is uncommon and is testament to the robustness of the mineralisation we have discovered at FB3 and LR1. Defining an Indicated Mineral Resource of greater than 100Mt has more than exceeded our expectations at such and early stage for the project. “In addition the outcropping higher-grade zones averaging 12.8% Mn within this Mineral Resource exhibit impressive geological and grade continuity, both of which are extremely positive factors for resource optimisation and potential mining scenarios.

“The large tonnage resource also enables the Company to consider using elevated cut-off grades to increase the mine feed grade whilst maintaining sufficient tonnage for a long-life mining operation. “There also remains further upside at Flanagan Bore with several other manganese targets that have only been partly tested or remain untested such as FB1, FB5 and FB6 with the potential to deliver significant additional tonnage to the project.”

 

[Sean K]

It seems that these guys might have tripped over some manganese.

Looks like the short term traders hit it hard early this week and then took their bats and balls pretty quickly.

MC still only $15m ish so if they have actually found something it might just be the start.

 

[Sean K]

Sean K Trading of 20 years ago probably would have piled into this for a short term trade. But now that he's old, senile, and has the speed of a Galapagos Turtle, he just sits back and watches as others fight over the scraps of meat in the street. Probably safer and less stressful, but not as fun.

 

[Garpal Gumnut]

What a nice chart @Sean K . Quite sweet how the gap was filled at around $14 today. Perhaps a consolidation on the cards $15-$17.50 before a further move north.

gg

 

[Sean K]

What a nice chart @Sean K . Quite sweet how the gap was filled at around $14 today. Perhaps a consolidation on the cards $15-$17.50 before a further move north.

gg

Probably should have thrown a dart at this.

 

[Sean K]

MC of this is still just $32m. Must have been worth about 5c two months ago before it took off.

When I first looked at it I was completely put off by the management shenanigans going on behind the scenes so I stayed well clear.

I suppose the price action doesn't lie though.

 

[Dona Ferentes]

What a nice chart @Sean K . Quite sweet how the gap was filled at around $14 today. Perhaps a consolidation on the cards $15-$17.50 before a further move north.

gg

if only.... did someone order a magnum?

now $0.265

 

[Sean K]

if only.... did someone order a magnum?

now $0.265

Someone is drinking a magnum of something.

 

[Garpal Gumnut]

Manganese is one of the black holes in my knowledge. Are the findings good. @Sean K

gg

 

[Sean K]

Manganese is one of the black holes in my knowledge. Are the findings good. @Sean K

gg

I don't know much either. But, from what I can tell this is looking good. Medium grade, shallow and potentially stretches over 3km. So, could be large tonnage if it all joins together.

I'm not sure why they're calling it 'high' grade. Mr Google AI tells me high grade is over 45%.

Their other deposit in a different setting is only 10%. This is 30-40% so much higher but not high.

There's a lot of high grade Fe in this too.

 

[Garpal Gumnut]

I don't know much either. But, from what I can tell this is looking good. Medium grade, shallow and potentially stretches over 3km. So, could be large tonnage if it all joins together.

I'm not sure why they're calling it 'high' grade. Mr Google AI tells me high grade is over 45%.

Their other deposit in a different setting is only 10%. This is 30-40% so much higher but not high.

There's a lot of high grade Fe in this too.

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Thanks @Sean K . I did a similar AI search and came up with the same high vs medium figures but was unable to interpret them vis a vis $BCA "long extent medium projected". Appreciated.

gg

 

[Sean K]

Thanks @Sean K . I did a similar AI search and came up with the same high vs medium figures but was unable to interpret them vis a vis $BCA "long extent medium projected". Appreciated.

gg

A lot of expectation built in to this drill program. If it does run 3km long, could be very large. But, who knows.

 

[Sean K]

This still has a MC of just $58m after going 8x already. Quite spectacular.

 

[Sean K]

Going BCA in the Sep comp because I think it's just going to keep going up. No signs of a correction in the slightest (which means it will). Maybe some more drill results will come out confirming the dimensions and grade of Wandanya. Looks like it could be good enough for a major to gobble it up.

 

[Sean K]

Going BCA in the Sep comp because I think it's just going to keep going up. No signs of a correction in the slightest (which means it will). Maybe some more drill results will come out confirming the dimensions and grade of Wandanya. Looks like it could be good enough for a major to gobble it up.

It seems every time I pick something in the monthly comp it does a CR during the month to smash the price on me. Grrrrr.

 

[Antirnator]

It seems every time I pick something in the monthly comp it does a CR during the month to smash the price on me. Grrrrr.

My watchlist thanks you

 

[Sean K]

Only 5% discount to the last 5 days, but it's still going to kill my monthly comp contention. Grrrrr

I thought they might have gone for more than $10m with the drilling success they're having.