Aim-listed Marula Mining has received assay results from channel samples taken from manganese ore within licensed areas that will provide run-of-mine (RoM) material to the recently acquired Kilifi manganese processing plant located in the Tezo Area, Kilifi County in Kenya.

Marula says the assay results have confirmed a high-grade zone of manganese ore of up to 1 m in thickness and with assay results of between 44.13% and 71.01% manganese.

This high-grade zone is located at depths of about 5 m and below the base of the low- to medium-grade manganese ore deposits that are located in the Ganze region of Kilifi County and which have been identified to extend along a 30 km strike length.

Marula says manganese ore from the Ganze region is expected to be supplied at monthly rates of 10 000 t to the company's Kilifi plant under a manganese ore supply agreement entered into with Kitmin Holdings announced on August 1.

The company explains that assay results confirm the potential for the company's wholly owned subsidiary, Muchai Mining Kenya (MMK), to process this high-grade manganese ore at the Kilifi plant to either produce a dedicated high-grade manganese product, or blend with the lower- to medium-grade manganese ore, and produce a higher-grade or higher-value saleable final product.

A total of six channel samples were taken from exposed manganese ore within licensed areas in the Ganze region of Kilifi County.

Assay results recorded high-grade manganese, with an average grade of 61.95% manganese obtained and the lowest and highest reported grades of 44.13% manganese and 71.01% manganese, respectively.

The assay results for the six samples included 44.13% manganese, 51.69% manganese, 66.04% manganese, 68.41% manganese, 70.38% manganese and 71.01% manganese.

The samples were assayed by Kenya's State Department for Mining at its laboratory facilities in Nairobi.

The samples were taken from the lower sections of the manganese-rich deposits found in the Ganze region of Kilifi County, more specifically from the base of the unit where larger manganese-bearing rock fragments are found.

Marula and MMK are currently negotiating additional manganese ore supply agreements and looking at acquiring a number of projects to enable the Kilifi plant to operate on a double-shift basis with the potential to produce between 15 000 t and 20 000 t a month.

The company is expected to start processing operations at the Kilifi plant in early September and continues to target RoM ore feed to the Kilifi plant of higher than 20% manganese, which will be upgraded to higher than 30% manganese after processing through the Kilifi plant.

Under the company's current budget, cash flow projections and contracted operating costs for the supply of material, transportation and logistics for its export, the Kilifi plant is expected to generate about $250 000 to $400 000 a month of free cash flow beginning from the middle of the fourth quarter this year and that will be used by the company to further expand its operating activities in Kenya and East Africa.

"It's extremely encouraging to receive such high-grade assay results of samples from one of the key areas of the manganese ore supply that has been secured to feed the Kilifi plant,” says Marula CEO Jason Brewer.

He explains that this high-grade zone of mineralisation, identified beneath the main orezone, has the potential to have a material impact on the underlying project economics of this operation and further demonstrates the potential that exists in Kilifi County.

"As we look to commence processing operations at the Kilifi plant in September, we also look forward to finalising the terms of additional manganese ore supply agreements and possible acquisitions, as well as finalising  the logistics and sales agreements. I look forward to updating shareholders further on our activities at the Kilifi Plant,” he says.