Shaw River Resources Limited announced that a significant diamond drilling program has commenced at its 75.5% owned Otjozondu Manganese Project in Namibia. In addition, two additional RC drill rigs and crews will arrive on site in the coming weeks, as part of the plan to substantially grow the existing resource inventory and be in production of manganese in 2012.

Highlights;
1. 3,000 meter diamond drilling program commences at Shaw River’s 75.5% owned Otjozondu Manganese Project in Namibia.
2. Two additional RC drill rigs and crews are planned to be on site within weeks to begin an aggressive resources extension drill program of over 7,000 meters.
3. First results from the program are anticipated in July 2011. A resource upgrade is expected in September 2011. First production is targeted for June 2012.
4. JORC Inferred Resources currently stand at 6.8 MT at 23% Mn and the Project Exploration Target of 35 MT to 50 MT grading 23%Mn to 27%Mn.
5. A feasibility study is underway with engineers GTI, an experienced international team with extensive African and Namibian project experience.
6. Scoping study has indicated strong economics from an proposed initial 250,000tpa operation from 2012 targeting ramp up to 500,000 tonne per annum producing a high grade, high quality product using simple beneficiation methods. Manganese product grade estimated 38% to 40% Mn.

The results, which are expected to start flowing in July from the 3 drill rigs that will be operating at Otjo, will help underpin the feasibility study already underway on the Otjo Project. The study is focused on production of a gravity beneficiated manganese lump ore for export via the Port of Walvis Bay.

Shaw River holds exploration and mining licences over 1,700 square kilometers of covering 144 kilometres of the strike of the Otjozondu Manganese Field in Namibia. The project currently has defined Inferred JORC resources of 6.8 MT at 23.1% Mn. The current resources are based on 33,000 meters of historical drilling.

Mr Vincent Algar MD of Shaw said that “This drilling program is the next step in Shaw’s plan to be a manganese producer in 2012.”