13FEBRUARY2017
CSIROTOCOMMENCEBATTERYGRADEELECTROLITIC
MANGANESEDIOXIDESTUDIESATBUTCHERBIRD
• CSIROtocommencestudiestoproduceElectrolyticManganeseDioxide
(“EMD”)fromtheButcherbirdManganeseDeposit(100%MZM).
• ButcherbirdisAustralia’slargestonshoremanganeseresourceat>170
milliontonnesofmanganiferousore4.
• EMDisanimportanttechnologymetalwithover90%ofglobal
consumptionusedinbatterymanufacturing.
• Lithium-Ionbattery1cathodescontainupto60%manganese,whichis
~5timesthecontainedvalueand~15timestheamountoflithium2,3.
• Co-fundinggrantapprovedbytheFederalGovernmentDepartmentof
Industry,InnovationandScience.
MontezumaMiningCompanyLtd(“Montezuma”or“Company”)ispleasedtoannouncethatthe
CommonwealthScientificandIndustrialResearchOrganisation(“CSIRO”)ProcessScienceand
TechnologyGrouphasagreedtoundertakeresearchanddevelopmentstudiesintotheproductionofhighpurityElectrolyticManganeseDioxide(“EMD”)
frommanganeseoressourcedfromtheCompany’s100%owned,infrastructureendowedButcherbird
ProjectinWesternAustralia.
Theinvestigationswillalsofocusonimprovingthe
primarybeneficiationgradesachievedfromtheButcherbirdoresasafeedstockintotheEMDprocessflowsheet(s)andasapotentialmarketable
productforsaletothemanganesealloymarkets.Previousworkachievedconsistentgradesof~33%
Mn,andthisworkwillseektofurtherincreasethat5.
TheDepartmentofIndustry,InnovationandSciencehaveagreedtoco-fund
theworkupto$50,000aspartoftheInnovationsConnectionsProgramme.
1http://www.visualcapitalist.com/manganese-powering-the-next-generation-of-lithium-ion-batteries/2http://batteryuniversity.com/learn/article/types_of_lithium_ion3https://www.metalary.com/lithium-price/
ABOUTMONTEZUMAMININGListedin2006,MontezumaMiningCompanyLtd(ASX:MZM)isadiversifiedexplorerprimarilyfocusedongoldandmanganese.TheCompany’sprimaryobjectiveistoachievereturnsforshareholdersthroughselectedstrategicacquisitionsandtargetedexploration.
Montezumahas100%interestsintheYamarnaGoldProjectintheYamarnaGreenstoneBelt,theHolletonGoldProjectintheWheatBeltregionandtheButcherbirdManganese/CopperProjectintheMurchisonregion,alllocatedinWesternAustralia.
MARKETDATAASXcode: MZMShareprice: $0.14Sharesonissue: 83.5MMarketcapitalisation: $11.7MCash(at30December): ~$4.6MListedInvestments: ~$7.7M
BOARDANDMANAGEMENTChairman SeamusCorneliusExecutiveDirector JustinBrownNon-ExecutiveDirector JohnRibbonsExplorationManager DaveO’Neill
Companyinformation,ASXannouncements,investorpresentations,corporatevideosandotherinvestormaterialontheCompany’sprojectscanbeviewedatwww.montezuma.com.au
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ABOUTTHEBUTCHERBIRDPROJECT
TheButcherbirdManganeseDepositisAustralia’slargestonshoremanganeseresource4comprisinglargetonnagesofnearsurfacemanganeseoxideoreinsevendeposits.
TheProjectalsohassomeexcellentinfrastructureadvantageswithagaspipelineandmainbitumenhighwaypassingdirectlyadjacenttoandthroughthemineralisedenvelope.
ThemineralisationoccursassupergeneenrichmentofaregionalscalebasalmanganeseshalewhichunderliesmuchoftheProjectarea.Theshalebedsaregentlyfoldedandwherethefoldsapproachthesurfacetopography,supergeneprocesseshavesignificantlyupgradedthemanganesecontenttoformapotentialfeedstockforfurtherupstreamprocessing.
BENEFICIATIONPOTENTIAL
TheCompanydiscoveredthedepositsin2010-2011andhassubsequentlyundertakenseveralroundsofmetallurgicaltestworkwhichhaveshownthatahighsilicaconcentratewithapproximately33%containedmanganeseandlowdeleteriouselementscanbereliablyproducedthroughrelativelysimpleprocessingmethods5.
Thismediumgradeconcentrateissuitableforuseintheproductionofsilicomanganesealloys,amajormanganesefeestockforuseinsteelmaking.ThisconcentratewillbeusedastheinitialfeedfortheEMDproductionprocesstestwork.
ABOUTEMD
IndustryobserversexpecttheglobalelectrolyticmanganesedioxidemarkettoreachUSD635.7millionby2022withaprojectedcompoundannualgrowthrateof4.9%from2015to2022.6
Growthindemandfromthebatterymanufacturingindustryisexpectedtodriveprojecteddemandcurvesastechnologicaladvancementsinwindandsolarpowergenerationandtheneedforassociatedgridelectricalstoragesystemsexpands.
BatteryproductionistheleadingEMDconsumerwithmarketshareestimatedtoexceed90%ofglobalconsumption.Thisdemandisexpectedtocontinuetogrowinparticularduetothecurrentandexpectedfuturegrowthintheglobalelectricvehicleindustry,whichinturnhasastrongimpactonbatterydemand.ManganeseintheformofEMDisakeyingredientinseveraltypesofwidelyusedbatterytechnologiesincludingLi-ion,alkalineandzinc-carbon,andthenextgenerationlithiatedmanganesedioxidebatteries,withcathodescomprisingover60%Mncomparedtoapproximately4%lithium.
4MontezumaMiningCompanyLtdASXreleasedated7December20125MontezumaMiningCompanyLtdASXreleasedated27December20146http://www.grandviewresearch.com/press-release/global-electrolytic-manganese-dioxide-market
Classification InferredResource
Cut-off 10%Mn
Deposit Tonnes(Mt) Mn(%)
BindiBindiHill 8.75 11.09
BudgieHills 1.03 10.82
CadgiesFlats 0.25 11.08
Coodamudgi 12.9 11.48
IllgararieRidge 17.0 10.71
Mundawindi 14.2 12.23
RichiesFind 16.1 11.56
SUBTOTAL 70.2 11.4
YanneriRidge 48.8 11.8
GLOBALTOTAL 119.0 11.6
Table1. InferredMineralResourceEstimatesattheButcherbirdManganeseProjectarereportedata10%Mncut.
Classification InferredResource
Cut-off 8-10%Mn
Deposit Tonnes(Mt) Mn(%)
BindiBindiHill 5.7 9.2
BudgieHills 3.5 8.9
CadgiesFlats 0.2 9.1
Coodamudgi 3.6 9.5
IllgararieRidge 18.5 9.2
Mundawindi 2.1 9.4
RichiesFind 6.6 9.4
SUBTOTAL 40.1 9.3
YanneriRidge 15.8 9.4
GLOBALTOTAL 55.9 9.3
Table2. InferredMineralResourceEstimatesattheButcherbirdManganeseProjectarereportedat8-10%Mn.
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FORMOREINFORMATION…
JustinBrown
ExecutiveDirectorPhone:+61863151400Email:[email protected],ASXannouncements,investorpresentations,corporatevideosandotherinvestormaterialontheCompany’sprojectscanbeviewedathttp://www.montezuma.com.au.
Figure1:ButcherbirdManganeseProjectlocationplanincludingresourceoutlines.
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TheinformationinthisreportthatrelatestoExplorationResults,MineralResourcesandMineralReservesisbasedoninformation
compiledbyMrJustinBrownwhoisamemberoftheAustralasianInstituteofMiningandMetallurgy.Atthetimethatthe
ExplorationResults,MineralResourcesandMineralReserveswerecompiled,MrBrownwasanemployeeofMontezumaMining
CompanyLtd.MrBrownisageologistandhassufficientexperiencewhichisrelevanttothestyleofmineralisationandtypeof
depositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012
editionofthe‘AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.MrBrownconsentsto
theinclusionofthisinformationintheformandcontextinwhichitappearsinthisreport
Pleasenotewithregardtoexplorationtargets,thepotentialquantityandgradeisconceptualinnature,thattherehasbeen
insufficientexplorationtodefineaMineralResourceandthatitisuncertainiffurtherexplorationwillresultinthedetermination
ofaMineralResource.
TheinformationintheannouncementthatrelatestoMineralResourcesfortheButcherbirdProjectisextractedfromASX
announcementof7December2012.Thecompanyconfirmsthatitisnotawareofanynewinformationordatathatmaterially
affectstheinformationincludedintheoriginalmarketannouncementsandthatallmaterialassumptionsandtechnicalparameters
underpinningtheestimatesintherelevantmarketannouncementscontinuetoapplyandhavenotmateriallychanged.The
companyconfirmsthattheformandcontextinwhichtheCompetentPerson’sfindingsarepresentedhavenotbeenmaterially
modifiedfromtheoriginalmarketannouncement.ThisinformationwaspreparedandfirstdisclosedundertheJORCCode2004.It
hasnotbeenupdatedsincetocomplywiththeJORCCode2012onthebasisthattheinformationhasnotmateriallychangedsince
itwaslastreported.
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