groote resources enters final stages for appro

Groote Resources.Groote Resources Limited is a Perth-based exploration company which continues to actively search for new projects, both within Australia and offshore. Currently the company has two main projects, the Groote Eylandt Manganese project and the Mt Alexander Uranium Project.

Groote Resources holds exploration rights for six tenements covering 1,723 km2 of shallow marine terrain and two islands near Groote Eylandt in the Northern Territory of Australia. These tenements are located immediately adjacent to and contain the interpreted extensions of the world-class manganese deposits at Groote Eylandt.

The EL comprises 8,877 hectares of prospective ground in the Ashburton Mineral Field of Western Australia, approximately 10km south of Nanutarra. An assessment of this work has identified a number of conceptual uranium and basemetal targets and an exploration program is currently being produced by the team at Groote resources.
CLICK HERE FOR FULL ANALYSIS OF GROOTE RESOURCES
Thursday, April 29, 2010

Groote Resources enters final stages for approvals for Groote Eylandt Manganese Project
by Proactive Investors

Manganese-focussed Groote Resources (ASX:GOT) ticked off some milestones during the March quarter. Not the least was the appointment of former Fortescue Metals Group Limited (ASX: FMG) senior executive Chris Catlow as chairman of Groote.

Catlow was inaugural chief financial officer of Fortescue Metals Group, playing a central role in the development of Fortescue and in raising more than US$4 billion.

A new executive team was appointed at Groote Resources to progress the company's manganese project tenements, forming the 100%-owned Groote Eylandt Manganese Project, to exploration and transition to production focus.

The project is located at Groote Eylandt, Northern Territory in the western Gulf of Carpentaria, approximately 630km east of Darwin. The project consists of 2 applications covering Winchelsea and Connexion Islands and a further 4 applications covering shallow marine tenements.

Groote Resources' applications are adjacent to Groote Eylandt. Cross-section shows an east-west section and the distribution of manganese oxide ores within the shallow, westerly dipping Cretaceous stratigraphy of Groote Eylandt.

The ELAs cover interpreted along strike and down-dip extensions to the Groote Eylandt manganese deposit.

The Groote Eylandt manganese deposit has been mined continuously since 1966 and is owned by Groote Eylandt Mining Company Pty Ltd (GEMCO) which is jointly owned by BHP Billiton Ltd (60 per cent) and Anglo American Corporation (40 per cent).

GEMCOs 2009 resource of 160MT @ 45.5% Mn producing more than 3 million tonnes manganese ore annually, accounting for more than 15% of the worlds high-grade manganese ore supply. Due to the grade, close proximity to port and Asian markets, this low impurity and low strip ratio operation is Australians 9th most profitable mine and one of the lowest operating cost manganese mines in the world.

The company has a "conservative resource target" of in excess of 50 million tonnes at its Groote Eylandt Manganese Project, with potential for a proposed Direct Shipping Ore operation of 2 3 million tonnes per annum.

Winchelsea and Connexion Island

Remote sensing of satellite imagery has delineated an extensive area of highly prospective Cretaceous sediments covering greater than 17km on Winchelsea Island. Further detailed investigation identified potential manganese outcropping to the south-west as confirmed in photographs.

The southern outcrop also consists of identical stratigraphy to that found at GEMCOs operating pits further increasing confidence in discovery.

Groote Resources said it anticipates receiving 'permission to negotiate' from the Mines Minister for the
tenements covering Winchelsea and Connexion islands as there were no objections received within
the NT government's specified time frame.

Groote Eylandt offshore

Remote sensing has mapped manganese subcropping at the intertidal zone within Groote Resources tenements directly downdip and adjacent to GEMCOs operations. This area covers approximately 12km and has been confirmed as manganese mineralisation in images obtained.

In addition to this intertidal subcropping, a highly prospective area in excess of 300km has been delineated downdip from the subcropping area to the western extent of the tenement. The seafloor gradient of this area is around 1:1,000 with most of this ground shallower than 7m water depth.

Groote Resources expects the offshore tenements to be granted in the coming weeks following the completion of the final stages of the application process by the NT titles department.

During the quarter the company has focussed on preparing detailed exploration proposals for the Groote Eylandt manganese projects.

On granting of the ELA's the company will undertake an initial exploration program comprising of generation of worldview-2 bathymetry, high resolution aerial photography of near-shore license areas, and an airborne EM and magnetics survey.

This will be followed by detailed overwater surveys including a detailed bathymetric and sub-bottom acoustic profiling survey. The aim of this stage of the exploration program is to confirm the prospectively of licences for high grade economic manganese deposits. To this end the primary task will be the generation of targets for drill testing.

Groote Resources Limited expects to initiate its first offshore drilling program later in 2010.

Corporate

During the quarter, Groote Resources completed a placement of 24 million shares @ 10c per ordinary
share to raise $2.4 million.

The Company previously announced it intends to make a share placement of 1.25 million shares at an issue price of $0.80 per share to raise $1,000,000 before costs.

The placement will be issued to Chris Catlow and or his nominees. The placement will be completed
following shareholder approval.

A change of name from Western Uranium to Groote Resources occurred.