Butre Manganese Project
(Ghana, West Africa)

Background

Shaw River has agreed to a six month evaluation option to acquire Mwana Africa’s PLC (MWA) 80% interest in a manganese project in Ghana (ASX release – 21 Oct 09). The project is known as the ‘Butre Project,’ which is strategically located in the world class manganese region in West Africa. This agreement represents a natural extension of Shaw River’s manganese strategy.

The evaluation period is from October 2009 – March 2010 in which Shaw River intends to confirm the exploration target stated by MWA and increase targets for manganese oxide resources.

To assist in the evaluation Shaw River has engaged Coffey Geoscience Ghana, a well respected team of exploration consultants with direct operational experience in Ghana and West Africa.

Location

The Butre Project is strategically located 30km on sealed roads from bulk port of Takoradi and 200km west of the capital Accra, Republic of Ghana. Takoradi currently ships around one million tonnes per annum of manganese ore from the world class Nsuta Manganese Mine, operated by Palmary Enterprises (owners of Woodie Woodie Manganese Mine), which has been operating since 1923 and has produced some 25 million tonnes of high grade oxide manganese ore. Ghana and West Africa have long been one of the key suppliers of high quality manganese oxide ore for the steel market.

Geology

MWA has stated the following geological findings and the exploration targets from historical exploration.

The Butre Project contains known manganese occurrences at Jimra Bepo, consisting of multiple in-siti manganese oxide seams up to 12 meters thick. Shaw River intends to confirm an initial exploration target of in-situ DSO oxide manganese ore of 1.7 to 1.9 million tonnes at 35 to 45% manganese and an additional 1.5 to 1.7 million tonnes  at 15 – 25% manganese of sedimentary ores which will require beneficiation. The project lease contains other manganese occurrences of oxide manganese not yet evaluated.

MWA conducted gold drilling with 16 RC drillholes and intersected gold mineralisation over strike length of 500 meters. Best intersections include 2m @ 3.95g/t Au, 18m @3.36g/t Au and 5m @2.99g/t Au.