Perth-based Barra Resources and 50% Joint Venture partner Fission Energy have received the green light for a prefeasibility study into the development of Mt Thirsty nickel-cobalt-manganese oxide project.

The Mt Thirsty Deposit, located 20km NNW of Norseman in Western Australia, has the potential to emerge as a significant world cobalt supplier.

Mt Thirsty has a current JORC compliant Indicated Resource of 14.8 million tonnes at 0.14% Cobalt, 0.59% Nickel and 0.99% Manganese and a JORC compliant Inferred Resource of 14.2 million tonnes at 0.11% Cobalt, 0.52% Nickel and 0.77% Manganese.

Product samples recently produced from Mt Thirsty oxide ore in recent testwork based on IMO's proposed flowsheet are shown in Plate 1. Based on the current flowsheet, approximately 27,000 tonnes of MSP and 33,000 tonnes of manganese carbonate could be produced from Mt Thirsty each year.

A process package to be distributed to selected globally recognised process engineering companies is currently being prepared by IMO. Following selection of the successful tenderer the PFS will commence in August and be completed by the end of 2010.

Further infill drilling to upgrade resource categories and confirmatory metallurgical testwork to produce additional information and additional samples of the likely products will be completed prior to commencement of the PFS.

Pending a favourable outcome to the PFS the joint venturer partners are confident the project has all of the necessary ingredients to attract a major international cobalt refiner/off-take partner to fund a final feasibility and project construction.