Bryah Resources (ASX: BYH) has received OM Holdings’ (ASX: OMH) $250,000 exercise fee – making the progression of the duo’s manganese joint venture official and giving OM a 10% stake in the Bryah Basin project’s manganese rights.
OM and Bryah agreed to the joint venture in April this year, with OM spending $500,000 on exploration between April and mid-August.
Now the OM has paid its exercise fee and locked-in 10% of the project’s manganese rights, it will spend $2 million on advancing the project to increase its interest to 51%.
Manganese exploration to-date
During the first exploration stage, numerous manganese discoveries were made, with Bryah uncovering up to 42% manganese at the project’s Black Hill prospect.
Better results from Black Hill were 6m at 38.1% manganese, including 3m at 42% manganese; and 5m at 36.9% manganese, including 1m at 40.4% manganese.
Over at the Black Caviar prospect drilling returned 2m at 32.9% manganese; and 3m at 28% manganese, including 2m at 32.1% and 1m at 24.9% manganese.
These results built on those from Brumby Creek which revealed up to 32.8% manganese from near surface. Additionally, mineralised zones at this prospect were extended with new targets firmed up 1km to the south.
Drilling at the historic Horseshoe South mine also extended known mineralised zones.
Within the main pit, better intervals were 3m at 33.8% manganese, 5m at 24.2% manganese, and 4m at 25.8% manganese.
Over in the extended pit area, up to 22.6% manganese was found.
Advancing joint venture
Late last month OM and Bryah informed investors the joint venture was progressing to the next stage with both companies developing a “very positive” working relationship since April.
Bryah has submitted its plans for the next exploration phase at the project with this stage expected to cost about $500,000 and will retest Black Hill and Brumby Creek in addition to new targets Black Beauty and Cheval.
Shares in Bryah were steady at $0.072 in early morning trade.