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Project Summary

Significant high grade Manganese resource defined
Apparent hydrothermal replacement deposit within fault
Exploration continues with drill programme
Existence of required infrastructure will impact project economics favourably



General

Manganese is essential to iron and steel production by virtue of its sulphur-fixing, deoxidizing, and alloying properties. Steelmaking, including its iron-making component, has accounted for most of the manganese demand. Among a variety of other uses, manganese is a key component of widely used aluminium alloys and is used in oxide form in dry cell batteries.

Following completion of the first phase of a programme of geological fieldwork on the Chiwefwe manganese deposit near Mkushi, an indicated resource has been defined following the line of the geological boundary between the basement complex rocks to the south and east and the Muva complex rocks to the north and west. The Mkushi prospecting permit covers an area of 400 hectares and also benefits from an established infrastructure that includes major road and rail links.




Geology and Mineralization


Occupying most of central-eastern Zambia is the north-east to south-west trending Irumide belt. It is Meso-Proterozoic to Paleo-Proterozoic in age where the oldest rocks are those of the Basement Supergroup and comprise the Mkushi Gneiss Basement Complex toward the south-west and the Bangweulu Block granites to the north-east Unconformably overlying this is a sequence of meta-pelite and meta-quartzite sediments belonging to the Muva Supergroup and are intercalated with acid volcanic material.

Manganese mineralisation was probably allied to Proterozoic volcanicity within the Zambia region 1300-1800 Ma enhancing the net crustal content of manganese. Regional uplift and Post-Proterozoic erosional processes then redistributed and concentrated the manganese metal to create both the stratabound occurrences and vein type deposits. Such supergene processes are thought to have occurred in the early Cretaceous following the break up of Gondwanaland and various regional uplift cycles in Africa.

Initial mapping and drilling of test pits indicate a potential yield of 2,360,000 tonnes of manganese ore. The manganese ore is from good clean quality material mainly in the form of manganite with a Mn content of over 46%.

Further work including the drilling of ten or more holes will now at once take place with the objectives of raising the south western area to measured category and defining depth, and of establishing indicated and inferred resources in the six kilometre northeast extension. Sampling results are expected to become available in the course of August 2006.





History


A significant high grade manganese deposit first located in 1931-1932 was examined in the Mwendafye Hills area of Central Zambia. The manganese deposit was traced along the northerly margin of a small granitic intrusive body 0.5 to 1.0 km wide striking in an easterly-northeasterly direction. The manganese is traceable on the northerly dip slope margin of the granitic intrusive body for a distance of 4 km. The manganese is traceable in outcrops up to 10 meters in thickness, in old production pits, in float talus boulders, and in fine grained manganese particles and black manganese soils over a strike length of 7.3 km. Small scale hand mining produced a recorded 80,000 tonnes of 50% Mn between 1954 and 1962 from one pit location in a toe of the slope area.

A recent 10 kg composite sample of manganese ore returned analytical values of 52% Mn. Another oxidized manganese sample returned values of 43.7% in ICP analysis.

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Click on links below to view photos from recent Tasmania reconnaissance trip:

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