With numerous intercepts above 40% manganese at the Otjozundu Project in Namibia, with potential for direct shipping ore, Shaw River Manganese is on track for a resource upgrade by the end of the month. With numerous intercepts above 40% manganese at the Otjozundu Project in Namibia, with potential for direct shipping ore, Shaw River Manganese is on track for a resource upgrade by the end of the month.

Shaw River Manganese has extended the high grade zone at the Labusrus Deposit with more intercepts of greater than 40% manganese, showing potential for a direct shipping ore operation.

The final batch of results from Shaw River's extensive diamond and reverse circulation drilling program at the Otjozundu Manganese Project in Namibia have identified a zone measuring greater than 40% manganese over 750 meters strike.

Intersections from the Labusrus Deposit include:

7.29 meters at 27.75% manganese from 7.2 meters including 1.81 meters at 45.13% manganese
8.31 meters at 28.23% manganese from 2.69 meters, including 3.19 meters at 29.87% manganese and 1.35 meters at 44.38% manganese
8.25 meters at 28.53% manganese from 8.42 meters including 2.28 meters at 31.7% manganese and 1.67 meters at 42.89% manganese

In addition, a number of intercepts between 20% and 40% manganese were identified in the Bosrand, North Bosrand and Ouparakane Deposits. Results from the recent drilling program will underpin a Resource upgrade at Otjo, which is due for release later in January 2012.

Inferred Resources at Otjo stand at 6.8 meters at 23% manganese, with a project exploration target of 35 to 50 million tonnes grading at between 23% and 27%.

Mr Vincent Algar MD of Shaw River said that "The intersection of a consistent, high grade zone in the Labusrus deposit area over 750 meters of strike is an added bonus to a very beneficial program for shareholders. The new information gives us an excellent base to revise our resources and an updated resource model is underway. We are rapidly gathering the information we need to develop and optimize a mine plan for Otjo, which is being used in the ongoing Feasibility Study. Initial work suggests that Otjo has the potential to enjoy low mining costs because most of it outcrops and the potential open pits will be relatively shallow."

Shaw River will continue exploration and resource drilling at Otjo in 2012, with the aim of expanding the resource base to underpin project development.

(Sourced from www.proactiveinvestors.com.au)