Element 25 shares hit 9-year high after Elon Musk says manganese will be key part of Teslas EV batteries

By Deputy Chief EditorSeptember 28, 2020

138 2 minutes read

Manganese stocks Element 25 Ltd (ASX:E25) and Bryah Resources Ltd (ASX:BYH) have gained significant investor interest after Elon Musk said last week during Teslas Battery Day 2020 that the companys next-generation EV batteries would contain one-third manganese.

Musk said: “Its relatively straightforward to do a cathode thats two-thirds nickel, one-third manganese, which will allow us to make 50% more cell volume with the same amount of nickel.”

E25 reached a new 9-year high of 92 cents today and Bryah shares have surged 20% this month to 6 cents.

Butcherbird Manganese Project[hhmc]

Beneficiation test-work completed during the first quarter of 2020 on E25s Butcherbird Manganese Project in Western Australia highlighted a compelling opportunity to fast-track the development of the project by implementing a low capital cost start-up stage exporting manganese lump ore.

The pre-feasibility study (PFS) and maiden reserve for the project confirmed outstanding economics and a low capital requirement, with the potential to be Australias next significant manganese mine.

Payback period of six months[hhmc]

Highlights of the PFS include a maiden proved and probable ore reserve of 50.55 million tonnes at 10.3% manganese containing 5.22 million tonnes of manganese.

It has a low capital requirement of $14.5 million and an average annual operating cash flow of $32.1 million for years 1-5.

There is a simple payback period six months from the start of operations.

The base case assumes annual production and sale of 312,000 tonnes per annum of medium grade lump manganese ore grading 30-35% manganese.

Approval process well underway[hhmc]

E25 has submitted several permit applications to relevant government departments for the project approval process, including Native Vegetation Clearing Permit application with the Department of Mines, Industry, Regulation and Safety (DMIRS) and Water Abstraction Licence with Department of Water and Environmental Regulation (DWER).

The company has also lodged a Works Approval with DWER and has received approval from the Mains Road Department for mine access road design.

Bryah Basin Manganese joint venture project[hhmc]

Bryah recently intersected further potential direct shipping grade manganese in reverse circulation (RC) drilling at the Bryah Basin Manganese joint venture project near Meekatharra in central Western Australia.

Drilling at the Black Hill prospect intersected potentially direct-shipping grade (>30% manganese) mineralisation in three drill holes (BHRC014, BYRC015 and BHRC018).

The latest results will enable Bryah to complete geological modelling and a mineral resource estimation for this high-grade prospect.