Perth, Dec 1, 2009 (ABN Newswire) - Galaxy Resources Limited (ASX:GXY)(PINK:GALXF) is pleased to announce that additional mining leases surrounding the Mt Cattlin Spodumene Project have been granted. Two additional mining leases making up the West Kundip Manganese Project have also been granted.

Mt Cattlin Spodumene Project

Four mining leases (M74/158, M74/159, M74/196 and M74/197) surrounding the Mt Cattlin Spodumene mine were recently granted to Galaxy by the Department of Mines and Petroleum (DMP). The leases further consolidate Galaxy's tenement holding in the area.

They are considered very prospective for pegmatite-hosted lithium-tantalum mineralisation, and outcropping spodumene (lithium) bearing pegmatite has been recorded from several areas on the new leases. Galaxy is currently planning sampling and drill programs to follow up on pegmatite mineral occurrences with the aim of expanding the Mt Cattlin resource base.

West Kundip Manganese Project

Two mining leases (M74/133 and M74/238) making up Galaxy's West Kundip Manganese Project were also granted recently. The leases are approximately 15km south of Ravensthorpe and cover a sequence of Proterozoic sediments including dolomite units, which are prospective for manganese mineralisation. Work conducted by Galaxy several years ago, prior to the tenements being converted to mining leases, outlined the presence of scattered pods of high grade manganese mineralisation.

Galaxy will carry out a VTEM airborne geophysical survey in the near future to follow up on the potential for manganese mineralisation and to define drill targets with economic tonnage potential.

The mineralisation at West Kundip is considered to be of a similar style to Woodie Woodie, which is a significant manganese producing mine in Western Australia's Pilbara region.

The style consists of high grades pods of manganese ore produced from dolomitic sediments as a result of hydrothermal alteration is being used by Galaxy in the West Kundip area to target manganese mineralisation. Past exploration in the region in the same geological sequence has previously defined small manganese ore bodies at the Copper Mine Creek Deposit, Dempster River Crossing and Hamersley Gorge (which now lie in the Fitzgerald River National Park).

A sample of manganese from a 7 tonne bulk sample in 1998 gave assays of 38% Mn, 3.22% Fe, 2.80% Si, 0.03% P and 2.00% Al.

Surface rock chip grab samples from the same area taken in 2008 and 2009 have returned up to 46.6% Mn, with 8.5% Fe, 1.0% Si, 0.002% P and 0.6% Al.

Galaxy's experience in heavy media separation processing techniques, mining fleet in the Ravensthorpe area and Esperance port facility agreements provide the company with an advantage in exploiting potential manganese mineralisation in the Ravensthorpe region.

Manganese Ore

Manganese ore is used to produce Electrolytic Manganese Dioxide (EMD) a valuable feedstock in cathode electrode material for alkaline manganese dioxide batteries, lithium manganese primary batteries and lithium ion manganese rechargeable batteries.

The production of EMD follows a very similar process used for lithium carbonate, utilising calcination, sulphuric acid leaching and impurity removal through neutralisation. The only difference is the last step of electro-winning EMD from a manganese sulphate solution.

The world demand for EMD is around 225,000 tpa. In 2008, there was a supply shortfall of around 65,000 tpa of EMD due to high costs plants being shutdown around the world and limited manganese ore in China.