REUNION Gold, the Canadian Company which has been prospecting for manganese at Matthews Ridge in Region 1 (Barima/Waini), has said that low prices for manganese on the world market had  led to the slowdown of its activities in Guyana. It will nevertheless   seek to obtain an extension of its prospecting licences for  Matthews Ridge.
The Company’s Matthews Ridge project is currently on care and maintenance while it is  evaluating different  options, including the sale of certain assets, joint venture, or other arrangement to finance the further development of the project.
The licences expire in September .
In a media release, the company said that   the economic slowdown in Asia and other parts of the world had led to a significant  drop in  the demand for steel and related products, including manganese.
This slowdown  and other economic factors have had a direct impact on the market price of manganese, and combined with a depressed equity market for junior mining companies,  made and makes it difficult to finance the development of manganese projects, it said.
Manganese is said to be the fourth largest metal consumed in the world, behind iron, aluminium and copper. It is a key component in steel and iron production with no viable substitute.
Reunion Gold Corporation had up to  mid last year assembled a large, strategic land position to conduct exploration and development activities for manganese in the North West District .
Reunion Management Inc. was granted four prospecting licences by the Government to  conduct  exploration and development activities for manganese in the North West District in 2010.
The project was centred in and around the abandoned manganese mine at Matthews Ridge and Pipiani which was operated by a subsidiary of Union Carbide Corporation from 1962 to 1968.
In excess of 1.66 million tonnes of manganese concentrate was shipped from the mine during that period.
Following successful  explorations,  Reunion Gold signed  a mineral agreement with the Government in 2011.
In February 2013, measured and indicated manganese resources at Matthews Ridge and Pipianin was estimated at a whopping  32.4 million tonnes, with an additional 5.3 million tonnes of inferred resources.
A pre-feasibility study on the manganese resources was completed in July 2013, just prior to the slowdown.
With respect to a resumption at Matthews Ridge, Reunion Gold  remains upbeat.
The Company said that its  priorities for the current financial year is to complete  financing to settle its working capital deficit,  fund on-going obligations and  to secure an extension of  its  prospecting licences in the area.

By Clifford Stanley