AIM-listed Marula Mining has reported promising assay results from channel samples of manganese ore within licensed areas that will supply material to the recently acquired Kilifi manganese processing plant in Tezo, Kilifi County, Kenya.
The assays revealed a high-grade manganese zone with a thickness of up to 1 meter, showing manganese content ranging between 44.13% and 71.01%.
This high-grade zone is situated at depths of approximately 5 meters below lower-grade manganese deposits found in the Ganze region of Kilifi County, extending along a 30-kilometer strike length.
Manganese ore from the Ganze region is slated to be supplied at a monthly rate of 10,000 tons to Marula’s Kilifi plant under an agreement with Kitmin Holdings, announced on August 1.
The assay results support the potential for Marula’s subsidiary, Muchai Mining Kenya (MMK), to process this high-grade manganese ore at the Kilifi plant, either as a dedicated high-grade product or blended with lower-grade ore to produce a higher-value final product.
Six channel samples were taken from the manganese deposits in Ganze, with assays conducted by Kenya’s State Department for Mining. The samples showed an average manganese grade of 61.95%, with individual grades ranging from 44.13% to 71.01%.
Marula and MMK are currently negotiating additional manganese ore supply agreements and exploring project acquisitions to enable the Kilifi plant to operate on a double-shift basis, potentially producing between 15,000 and 20,000 tons per month.
Processing operations at the Kilifi plant are expected to begin in early September, targeting an ore feed with manganese content above 20%, which will be upgraded to over 30% after processing.
Based on current budget, cash flow projections, and operational costs, the Kilifi plant is expected to generate approximately $250,000 to $400,000 per month in free cash flow by mid-fourth quarter 2024. These funds will support the company’s expansion efforts in Kenya and East Africa.
Marula CEO Jason Brewer expressed optimism, stating, “The high-grade assay results from key areas of manganese ore supply are extremely encouraging and have the potential to significantly impact the project’s economics.”
Brewer also highlighted the upcoming start of operations at the Kilifi plant and the finalization of additional supply, logistics, and sales agreements, promising further updates to shareholders.
