Black Canyon Limited (Black Canyon or the Company) announced initial leaching test work has delivered highly promising results, achieving up to 91% Manganese (Mn) leach extraction. The success of the leaching test work builds upon the completion of the positive Scoping Study on the Flanagan Bore development project, which examined producing manganese concentrate primarily for the steel market. The Company has a parallel strategy to produce HPMSM, commencing with this initial leach and crystallization test work.

This will be followed with more detailed Scoping Level leaching, purification and crystallisation of potential battery grade manganese sulphate over the coming months. Flanagan Bore is part of the Company's Carawine JV and is subject to a farm-in and joint venture agreement with Carawine Resources Ltd. Having earned a 51% interest, Black Canyon is now earning up to 75% in the Carawine Project tenements by sole-funding an additional $2.5 million of exploration expenditure. The Flanagan Bore Project is located approximately 400 km southeast of Port Hedland in the east Pilbara region of Western Australia.

The objective of the initial testwork was to establish the leaching amenability of manganese oxide ores using fairly standard chemical and physical parameters to determine extraction kinetics based on feedstock particle size, slurry density and SO2 concentration. The manganese-rich solution will also be crystallised and analysed in order to further understand the overall Mn purity and contaminant levels. The learnings from the initial leach and crystallisation tests can then be applied to further ongoing detailed leaching, purification and crystallisation testwork to support a HPMSM Scoping Study.

The Company has commenced this second stage of a hydrometallurgical testwork program with the preparation of suitable manganese oxide materials from LR1 and FB3.