Improved Manganese Recovery Boosts Black Canyon’s Wandanya Project Economics

Black Canyon Ltd-BCA-BCA letters carved into mining site.

Black Canyon Ltd

  • ASX Code: BCA
  • Market Cap: $7,519,740
  • Shares On Issue (SOI): 129,650,695
  • Cash: $718,000 (as of December 2024)
  • This is a special feature article produced for our partner. 

    Black Canyon Achieves Higher Manganese Recovery at Wandanya Project

    Black Canyon Limited (ASX: BCA) has announced significant improvements in manganese recovery from its Wandanya Project, with latest beneficiation testwork pushing recovery rates to 80% while maintaining a high-grade 45% manganese concentrate.

    Recovery Improvements Show Promise for Project Economics

    Recent heavy liquid separation (HLS) testwork on composite samples from the W2 prospect at Wandanya has delivered improved overall black canyon manganese recovery of 80% while producing a 45% Mn concentrate grade. These results build upon previously reported recoveries of 68-76% that yielded higher concentrate grades between 48-50% Mn.

    This trade-off between recovery and grade is a standard metallurgical relationship, but critically, the latest results maintain concentrate grades above the industry benchmark of 44% Mn. Higher recovery rates are particularly significant for mining operations as they typically lead to better utilisation of the orebody, potentially increasing product volume and extending mine life.

    Black Canyon's Managing Director Brendan Cummins emphasised the importance of these findings: "From a mining operations perspective, an improvement in recovery is important because it generally ensures better utilisation of the orebody, potentially increasing product volume and extending mine life through more efficient processing."

    High-Value Product with Attractive Specifications

    The concentrate samples from the Wandanya testwork demonstrated exceptional chemical properties, characterised by very low phosphorus and low iron and aluminium content. These specifications enhance the value of the concentrate in the market.

    According to the company, the Shanghai Metals Market is currently reporting a 44% Mn price of approximately US$5.10 per DMTU, which converts to US$224.40 per tonne. This pricing demonstrates the potential value of the Wandanya manganese product.

    Understanding Dense Media Separation in Manganese Processing

    Dense Media Separation (DMS) is a gravity-based technique commonly used in the processing of manganese ore. The process leverages the density difference between valuable manganese minerals and waste rock to achieve separation.

    In the laboratory, Heavy Liquid Separation (HLS) is used as a proxy for industrial DMS operations. The technique involves immersing crushed ore in a fluid with a specific gravity between that of the valuable mineral and the waste material. Heavier manganese minerals sink while lighter waste material floats, enabling efficient separation.

    The significance for investors is that DMS is a relatively low-cost, environmentally friendly processing method that doesn't require chemicals or complex equipment. The positive HLS results from Wandanya indicate that the deposit would be amenable to conventional DMS processing methods already proven in operations like Woodie Woodie, potentially reducing capital and operational costs.

    Exploration Plans Moving Forward

    Black Canyon is advancing its exploration strategy at Wandanya with:

    • Heritage survey scheduling underway
    • Phase two drilling planned for the June quarter
    • Focus on further evaluating the stratabound manganese and iron targets
    • Plans to conduct mineralogical studies to better understand the characteristics of the Wandanya mineralisation

    The company plans to leverage these metallurgical results in further testwork which will be core-based as it plans for a diamond drilling program.

    Why Investors Should Follow Black Canyon

    Black Canyon represents a compelling opportunity in the manganese space for several reasons:

    1. High-grade, high-recovery project: The ability to produce a 45% Mn concentrate with 80% recovery positions Wandanya as a potentially efficient and profitable operation.

    2. Favourable geology: The mineralisation at Wandanya is outcropping with potentially low strip ratios as it shallowly extends down dip to the east, suggesting favourable mining economics.

    3. Extensive exploration upside: With 3km of mapped strike length at Wandanya and a total land holding of 1,700km² across the Balfour Manganese Field and Oakover Basin, the company has significant exploration potential.

    4. Strategic mineral exposure: Manganese is essential and non-substitutable in steel manufacturing and is a critical mineral for Li-ion battery cathodes, providing exposure to both traditional and green energy markets.

    5. Existing resource base: The company already holds a Global Mineral Resource of 314 Mt @ 10.4% Mn across its Balfour Manganese Field projects, providing a solid foundation while it develops the higher-grade black canyon manganese recovery at the Wandanya discovery.

    As Black Canyon progresses its exploration and metallurgical work at Wandanya, investors should watch for continued improvements in recovery rates, expansion of the known mineralisation through drilling, and advancement toward economic studies that could further demonstrate the project's value proposition.

    Ready to Explore Black Canyon's Manganese Investment Potential?

    Discover more about Black Canyon Limited's promising Wandanya Project with its impressive 80% manganese recovery rates and high-grade 45% Mn concentrate. For investors seeking exposure to this critical mineral essential for both steel manufacturing and green energy storage solutions, visit the Black Canyon Investor Dashboard to access the latest company information, presentations and announcements.

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