- Vanadium Resources (VR8) has completed a maiden ore reserve for its 50 per cent owned Steelpoortdrift Project in South Africa
- The vanadium project has a total ore reserve of 73.85 million tonnes at 0.75 per cent vanadium pentoxide for 560,000 tonnes
- Of this, 31.17 million tonnes are in the proven category, with the remaining balance sitting in the probable category
- The ore reserve is based on the recently completed pre-feasibility study and the company will now proceed to completing a definitive feasibility study
- Vanadium Resources’ shares are trading steady at 5.7 cents
Vanadium Resources (VR8) has completed a maiden ore reserve for its 50 per cent owned Steelpoortdrift Project in South Africa.
The Steelpoortdrift Project has a total ore reserve of 73.85 million tonnes at an average grade of 0.75 per cent vanadium pentoxide for 560,000 tonnes. Of this, 31.17 million tonnes are in the proven category.
The high-grade portion of the ore reserve totals 40.25 million tonnes at an average grade of 0.96 per cent vanadium pentoxide.
CEO Eugene Nel said a mineral ore reserve may the most important asset for any mining company.
“The ore reserve elevates the project status to that of an economically extractable deposit which carries significant value for the company,” Mr Nel said.
“Another pleasing aspect is that the total production over the 25-year life of mine (LOM) has been included in the ore reserve, which means the definitive feasibility study (DFS) can be based on the present proven and probable ore reserves without the need to upscale any resources into a reserve.”
Vanadium Resources commissioned Sound Mining to complete the ore reserve statement which is based on the the recently completed pre-feasibility study (PFS).
The PFS outlined a LOM earnings before taxes, interest, amortisation and depreciation of US$5.8 billion (A$7.9 billion).
Capital expenditure (CAPEX) pre-production is expected to total US$200 million (A$272.4 million) while the project’s expansion CAPEX is set at US$147 million (A$200.2 million).
Once construction is completed and production is underway, Vanadium Resources aims to become a key supplier of vanadium products to global markets.
The company will begin the DFS study in the second half of the year to improve the maiden ore reserve.
Company shares were trading steady at 5.7 cents at 11:07 am AEST.