Element 25 Ltd (ASX: E25) shares leapt 2% higher on opening before giving back those gains in late morning trade. At the time of writing the Element 25 share price is down 1.5% to $1.58.
This comes following a progress report on its Butcherbird Manganese Project in Western Australia, released to the ASX this morning.
Element 25 shareholders have enjoyed a truly monumental year. Despite the shares tumbling 44% from 19 February through to 23 March during the wider COVID-19 market rout, the Element 25 share price is up a stellar 829% in 2020.
By comparison the All Ordinaries Index (ASX: XAO) is up just over 1%.
Image source: Getty Images
What did Element 25 report?
In this morning's progress update, Element 25 reported it had obtained environmental approvals for its 100% owned Butcherbird Project.
Western Australia's state government departments have given the green light to the company's Approval and Mining Proposal, and the State Mining Engineer has also provided its permission. These were the last hurdles Element 25 needed to clear before commencing construction at Butcherbird.
The company reported it plans to commence immediately, in line with its plans for first production in the first quarter of FY2021.
According to Element 25, Butcherbird is Australia's largest onshore manganese deposit, with some 260 million tonnes of manganese ore in an area with high end local infrastructure.
The company recently finished a pre-feasibility study on developing the deposit in order to produce manganese concentrate for export to generate early cash flow with "a modest capital requirement".
Commenting on the regulatory approvals, Element 25 managing director Justin Brown said:
This is the culmination of an extensive environmental assessment and community consultation process and it allows E25 to continue to rapidly progress its mine development and construction plans. The company has had an accelerated development timeline in place form the start and the fact that it continues to deliver the project on time and on budget is a testament to the dedication of the E25 team.
What does the company do?
Element 25 is engaged in the acquisition and exploration of metal properties in Australia. Its projects include Holleton, Butcherbird Manganese, Butcherbird Copper, Green Dam, Mount Padbury, and Pinnacles Cobalt/Nickel.
Element 25 shares first began trading on the ASX in November 2006. Based on the current Element 25 share price, the company has a market capitalisation of around $220 million.
