17:00 Wed 22 May 2019
Bushveld Minerals Ld - Vametco Mineral Resource and Ore Reserve Update
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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Vametco Inferred & Indicated Mineral Resource and Ore Reserve Update
Key Highlights
· Ore Reserves have more than doubled to 279,100 tonnes V2O5 in magnetite (previously 137,152 tonnes V2O5 in magnetite), notwithstanding production of approximately 5,700 metric tonnes of vanadium (between
· Indicated Resources have increased by 187 per cent. to 965,900 tonnes of V2O5 in magnetite (previously 336,604 tonnes V2O5 in magnetite).
· The recently drilled holes added further confidence to the Mineral Resource resulting in a higher ratio of Indicated Mineral Resource to the Inferred Mineral Resources, constituting 75 per cent. of the Total Mineral Resource.
· The aggregate Inferred and Indicated Mineral Resource is distributed across three Seams (The Lower, Intermediate and Upper Seams) and is reported as 186.7 Mt at an average grade of 1.98 per cent V2O5 (in magnetite), with an average magnetite content of 35.0 per cent (in whole rock) for 719,300 tonnes of contained vanadium.
· Within this, the Ore Reserve in the Probable Category is reported as 48.4 Mt across the same three seams at an average grade of 2.02 per cent V2O5 (in magnetite), with an average magnetite content of 28.5 per cent (in whole rock) for 156,300 tonnes of vanadium.
· The
· The 31 per cent increase in the 2019 Mineral Resource over the 2017 estimate is primarily attributed to reporting the Mineral Resource to a maximum depth of 150m below surface, versus 120m in 2017.
· A relatively higher grade in the 2019 estimate resulted from better definition of the mineralised units due to the recent drilling, which allowed the re-scrutinising of historical data. This, together with reporting the Mineral Resource at a cut-off grade of 20 per cent magnetite (previously no cut-off grade was applied), resulted in a higher-grade Mineral Resource than in 2017, particularly for the Upper Seam that is now defined as a layer of massive magnetite.
· The increase in the ore tonnages for the 2019 Ore Reserve estimate from 26.12 Mt to 48.43 Mt is due to the Mineral Resource definition work on the Intermediate and Upper Seams, which resulted in reclassification to the Indicated category, resulting in the conversion of an additional 8.19 Mt of Ore Reserves within the selected pit design. The additional 14.11 Mt of Ore Reserves from the Lower Seam is due to the larger pit shell from a Whittle pit optimisation based on the overall improved economics.
· The magnetite content grade increase in the Ore Reserves from 26.8 per cent to 28.5 per cent is a direct result of the increase in magnetite content in the Mineral Resources. The impact of this translates to additional potential ore production and vanadium through the processing plant.
Fortune Mojapelo, CEO of
"Following a significant amount of exploration work, including drilling to greater depths, as well as a reinterpretation of the geological model to include the cut-off grade of the magnetite, we have been able to report a significant increase in Ore Reserves and grade from the 2017 estimate.
"The conversion of additional Indicated Mineral Resources to Probable Ore Reserves, plus the larger pit shell, means we have added significant increased production life at Vametco. In fact, even at the future expanded rates of production we have previously laid out, this mine will operate for decades into the future."
Table 1: Vametco Mineral Resource at a cut-off grade of 20% magnetite, |
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Class |
Seam |
Tonnes |
V2O5 grade of whole rock |
Magnetite grade of whole rock |
V2O5 grade in magnetite |
Tonnes V2O5 in magnetite |
Tonnes V in magnetite |
|
(Millions) |
% |
% |
% |
(Thousands) |
(Thousands) |
|
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Indicated |
Upper |
5.7 |
1.44 |
65.9 |
1.78 |
67.0 |
37.5 |
|
Intermediate |
28.7 |
0.68 |
32.7 |
1.91 |
179.2 |
100.4 |
|
|
Lower |
109.4 |
0.72 |
32.4 |
2.03 |
719.7 |
403.1 |
|
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Total |
143.8 |
0.74 |
33.8 |
2.00 |
965.9 |
541.1 |
|
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Inferred |
Upper |
10.5 |
1.46 |
63.5 |
1.75 |
116.3 |
65.1 |
|
Intermediate |
7.0 |
0.67 |
32.1 |
1.92 |
43.4 |
24.3 |
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Lower |
25.4 |
0.74 |
31.3 |
2.00 |
158.5 |
88.8 |
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Total |
42.9 |
0.90 |
39.3 |
1.92 |
318.2 |
178.2 |
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|
Indicated and Inferred |
Upper |
16.2 |
1.45 |
64.3 |
1.76 |
183.3 |
102.7 |
|
Intermediate |
35.7 |
0.67 |
32.6 |
1.91 |
222.6 |
124.7 |
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Lower |
134.8 |
0.72 |
32.1 |
2.03 |
878.2 |
491.9 |
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Total |
186.7 |
0.78 |
35.0 |
1.98 |
1,284.1 |
719.3 |
|
Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources which are not Ore Reserves have no demonstrated economic viability.
3. Mineral Resources are inclusive of Ore Reserves (not indicated in the table).
4. Magnetite content (grade) is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.
5. Due to the magnetite grade being a recovered grade, differences will occur between whole rock V2O5 grades back-calculated from concentrate, versus those derived from whole rock assays.
6. Depleted as at
7. Reported on a Gross Basis.
Table 2: Vametco Mineral Resource at a cut-off grade of 20% magnetite, |
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Class |
Seam |
Tonnes |
V2O5 grade of whole rock |
Magnetite grade of whole rock |
V2O5 grade in magnetite |
Tonnes V2O5 in magnetite |
Tonnes V in magnetite |
|
(Millions) |
% |
% |
% |
(Thousands) |
(Thousands) |
|
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Indicated |
Upper |
4.2 |
1.44 |
65.9 |
1.78 |
49.6 |
27.8 |
|
Intermediate |
21.2 |
0.68 |
32.7 |
1.91 |
132.6 |
74.3 |
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Lower |
81.0 |
0.72 |
32.4 |
2.03 |
532.6 |
298.3 |
|
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Total |
106.4 |
0.74 |
33.8 |
2.00 |
714.8 |
400.4 |
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Inferred |
Upper |
7.7 |
1.46 |
63.5 |
1.75 |
86.1 |
48.2 |
|
Intermediate |
5.2 |
0.67 |
32.1 |
1.92 |
32.1 |
18.0 |
|
|
Lower |
18.8 |
0.74 |
31.3 |
2.00 |
117.3 |
65.7 |
|
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Total |
31.7 |
0.90 |
39.3 |
1.92 |
235.4 |
131.9 |
|
|
Indicated and Inferred |
Upper |
12.0 |
1.45 |
64.3 |
1.76 |
135.6 |
76.0 |
|
Intermediate |
26.4 |
0.67 |
32.6 |
1.91 |
164.7 |
92.3 |
|
|
Lower |
99.7 |
0.72 |
32.1 |
2.03 |
649.8 |
364.0 |
|
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Total |
138.1 |
0.78 |
35.0 |
1.98 |
950.2 |
532.3 |
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Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources which are not Ore Reserves have no demonstrated economic viability.
3. Mineral Resources are inclusive of Ore Reserves (not indicated in the table).
4. Magnetite content (grade) is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.
5. Due to the magnetite grade being a recovered grade, differences will occur between whole rock V2O5 grades back-calculated from concentrate, versus those derived from whole rock assays.
6. Depleted as at
7. Reported on an Attributable Basis.
Table 3: Vametco Ore Reserves, |
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Class |
Seam |
Tonnes |
V2O5 grade of whole rock |
Magnetite grade of whole rock |
V2O5 grade in magnetite |
Tonnes V2O5 in magnetite |
Tonnes V in magnetite |
(Millions) |
% |
% |
% |
(Thousands) |
(Thousands) |
||
Probable |
Upper |
1.0 |
0.58 |
27.3 |
1.78 |
4.6 |
2.6 |
Intermediate |
7.2 |
0.53 |
23.7 |
1.89 |
32.3 |
18.1 |
|
Lower |
40.2 |
0.63 |
29.4 |
2.05 |
242.1 |
135.6 |
|
Total |
48.4 |
0.62 |
28.5 |
2.02 |
279.1 |
156.3 |
Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Ore Reserve tonnes and grades reported on dry ROM (plant feed) basis after mining modifying factors have been applied but before beneficiation down-stream recoveries/losses have been applied
3. Reporting was prepared on a Mineral Resource model developed by MSA
4. Ore Reserve tonnes depleted as at
5. Reported on a Gross Basis.
Table 4: Vametco Ore Reserves, |
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Class |
Seam |
Tonnes |
V2O5 grade of whole rock |
Magnetite grade of whole rock |
V2O5 grade in magnetite |
Tonnes V2O5 in magnetite |
Tonnes V in magnetite |
(Millions) |
% |
% |
% |
(Thousands) |
(Thousands) |
||
Probable |
Upper |
0.7 |
0.58 |
27.3 |
1.78 |
3.4 |
1.9 |
Intermediate |
5.4 |
0.53 |
23.7 |
1.89 |
23.9 |
13.4 |
|
Lower |
29.8 |
0.63 |
29.4 |
2.05 |
179.2 |
100.3 |
|
Total |
35.8 |
0.62 |
28.5 |
2.02 |
206.5 |
115.6 |
Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Ore Reserve tonnes and grades reported on dry ROM (plant feed) basis after mining modifying factors have been applied but before beneficiation down-stream recoveries/losses have been applied
3. Reporting was prepared on a Mineral Resource model developed by MSA
4. Ore Reserve tonnes depleted as at
5. Reported on an Attributable Basis.
Enquiries: info@bushveldminerals.com
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+27 (0) 11 268 6555 |
Fortune Mojapelo, Chief Executive Officer |
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Nominated Adviser & Broker |
+44 (0) 20 3470 0470 |
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Alternative Resource Capital |
Joint Broker |
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+44 (0) 207 186 9001 |
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+44 (0) 207 186 9004 |
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Joint Broker |
+44 (0) 20 7236 1010 |
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Tavistock |
Financial PR |
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+44 (0) 207 920 3150 |
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Brunswick |
Financial PR ( |
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Miyelani Shikwambana |
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+27 (0) 11 502 7300 |
ABOUT
The Company's flagship vanadium platform includes a 74 per cent controlling interest in
Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owning high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage project developer and component manufacturer. Whilst the demand for vanadium remains largely anchored in the steel industry,
While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com.
About Vametco
Vametco is located near Brits on the
The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrates are fed into the extraction process which includes the kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide (MVO) in rotary calciners. MVO is fed into the mixplant and finally into the shaft furnaces to produce NitrovanTM.
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and Gas Companies", the information contained within the announcement has been reviewed and approved by Professor
Glossary of Technical Terms
Cut-off grade |
The lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification. |
Geological model |
Geological modelling, or Geomodelling, is the applied science of creating computerized representations of portions of the Earth's crust based on geophysical and geological observations made on and below the Earth surface |
Indicated Mineral Resources or Indicated Resources |
Indicated Mineral Resource or Indicated Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed |
Inferred Mineral Resources or Inferred Resources |
An Inferred Mineral Resource or Inferred Resource is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. |
Magnetite |
Naturally occurring form of iron ore with the formula Fe3O4. |
Mt |
Millions of tonnes |
mt or mtV |
Metric tonne or Metric tonne of Vanadium |
Ore or Mineral Resource |
Ore or Mineral Reserves are sub-divided into two categories. The "Proved" category - the highest level of Reserves or the level with the most confidence and the "Probable" category - the lower level of confidence of the Reserves. Reserves are distinguished from resources as all the technical and economic parameters have been applied and the estimated grade and tonnage of the resources should closely approximate the actual results of mining. The guidelines state: "Mineral Reserves are inclusive of the diluting material that will be mined in conjunction with the Mineral Reserve and delivered to the treatment plant or equivalent facility." The guidelines also state that: "The term 'Mineral Reserve' need not necessarily signify that extraction facilities are in place or operative or that all government approvals have been received. It does signify that there are reasonable expectations of such approvals." |
Seam |
a bed or a distinct layer of vein of rock in other layers of rock |
Vanadium |
Vanadium is a chemical element with the symbol V and atomic number 23. |
Vanadium Oxide |
Vanadium(V) oxide is the inorganic compound with the formula V2O5. |
Pit optimisation |
Pit optimisation is used to define the most profitable pit shell for a given set of economic parameters. The economic parameters generally include the metal prices, process recoveries, and operating costs. |
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