Operations Update

RNS Number : 3701O

Bushveld Minerals Limited

19 September 2013

 



19 September 2013

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Operations Update - Bushveld Iron Ore and Mokopane Tin Projects

Bushveld Minerals Limited (AIM: BMN), a mineral development company focused on iron and tin projects in southern Africa, is pleased to provide an operations update on its Bushveld Iron Ore and Mokopane Tin Projects, both located in the Northern limb of the Bushveld Complex in Limpopo Province, South Africa. The Company also provides an update on the progress of its bid for Lemur Resources.

Highlights:

·      Bushveld Iron Ore Project:

-      Drilling on strike extensions of the P-Q Zone confirms continuation of the mineralisation for another 2.3 km

-      Resource upgrade imminent and on track to meet 1 billon tonne JORC resource target

-      Pilot-scale bulk pyromet test work underway

-      Mineralogical testwork on the phosphate mineralisation lying above the P-Q Zone

·      Mokopane Tin Project:

-      Confirmation of a JORC compliant 12,452 tons contained Sn at an average grade of 0.11% Sn (using 0.07% Sn cut-off)

-      Resource upgrade represents a 208% increase in the overall tin inventory (comprising the Groenfontein and Zaaiplaats deposits) from 5,995 tons Sn to 18,447 tons Sn

-      These results are being incorporated into a scoping study for the tin project, which is on track for completion by the end of October 2013.

·      Lemur Resources Bid

o  Bid for Lemur Resources: Bushveld's stake has increased to 52.67% after receiving additional acceptances from Lemur shareholders.

CEO of Bushveld Minerals, Fortune Mojapelo said: "We remain on track with both the Iron Ore and Tin Projects.  We are very encouraged by the recent work confirming a robust phosphate mineralisation averaging 30 metres in thickness in the hanging wall and along the entire strike of the iron ore mineraliation with metallurgical testwork. Initial mineralogical gives us further confidence in the potential of the phosphate resource demonstrating the scope for upgrading the P₂O₅ grade to more than 30% concentrate with excellent recoveries. The phosphate will have a zero cost of mining, as it is part of what would be strip in the iron ore mining operation. This phosphate mineralisation will boost project economics over and above our recent scoping study in April 2013. We now look forward to defining the economic impact of this resource on the iron ore project and will update the market in due course.

The revised tin resource of 18,447 tons contained across two adjacent deposits adds critical mass to the Mokopane Tin Project. There are a further three targets to be developed within the license area and we remain on track to meet our target of an open-castable resource inventory of 20,000 ton contained tin and developing into a sizable tin project. Furthermore, we are also pleased with the progress being made in respect of acquisition of additional brownfield tin projects in South Africa. We will update the market on these developments

Commenting on the bid for Lemur, Mojapelo said that: "We are pleased to confirm Lemur Resources Limited as a subsidiary of Bushveld Minerals having increased our shareholding to 52.67% as of 18 September 2013 through acceptance into the Bushveld Minerals bid. The bid is still open until 26 September 2016, unless extended and we expect to receive more acceptances and further increasing our shareholding. We now looking forward to leveraging Lemur's balance sheet of A$17m and to develop an earnings profile for our Group by targeting cash-flow or near cash-flow producing assets.

Bushveld Iron Ore Project

Drilling - Additional 2.3km of strike length on P-Q Zone

Following the approval of the Section 102 application to add the farms Schoonoord 786 LR and Bellevue 808 LR to the licence area of 95PR (Operations Update, 19 March 2013),

Following further drilling on the P-Q Zone of the iron ore project we are able to confirm that the strike length has been extended by an additional 2.3km to the south. Three additional boreholes (SN01, SN02 and SN03) were drilled along strike on the farm Schoonoord that intersected the P-Q Zone Ti-magnetite at depths of <200m to confirm the extension of strike length.

The boreholes have been assayed and the data is being incorporated into the resource model in order to complete a further resource upgrade. This marks another important step to our stated target of reaching a 1 billion tonne JORC compliant iron ore resource.

Metallurgical Testwork 

The Company is also currently conducting additional metallurgical testwork focussed on:

·      Pyrometallurgical testing of a bulk sample of the Ti-magnetite concentrate using a pilot smelter to produce a pig iron product and sufficient titanium rich slag for upgrade testwork

·      Evaluating suitability of Bushveld's Ti-magnetite for use in coal beneficiation and other applications.

·      Extractive and pyrometallurgical testing of the vanadium rich MML deposit

Phosphate mineralogical testwork

The identification of a laterally consistent, broad zone of phosphate (P₂O₅) mineralisation above the P-Q Zone was announced on 24 January 2013. Initial mineralogical testwork has been conducted on this mineralised zone to establish its viability as a phosphate resource, prior to any Mineral Resource Estimation.

Mineralogical characterisation was carried out by SGS Laboratories in Johannesburg and involved X-ray Diffraction analysis, grading analysis, and QEMSCAN analysis, in order to study phosphate deportment, grain-size distributions and mineral liberation. The tests were conducted on a single sample from borehole VK17 with a head grade of 5.99% P₂O₅. Grading analysis shows that phosphate grades increase in the finer size fractions (9.05% P₂O₅ in the -106 µm size fraction). P₂O₅ occurs in the mineral apatite [Ca₅(PO₄)₃(F,Cl,OH)], and QEMSCAN Bulk Modal Analysis shows 12.6% apatite in the head sample, along with plagioclase feldspar, Titano-magnetite, pyroxene and minor amounts of talc. Apatite is finer-grained than the other minerals in the sample, with an average grain size of 95 µm. Apatite is very well liberated in the -106 µm size fraction (92.5% liberation) and is also well exposed (>80% exposure) in this size fraction. Large amounts of free apatite are found in the finer size fractions.

These results show that apatite is well liberated at size fractions amenable to flotation, and calculated grade recovery curves suggest recoveries of >95% may be achievable. Upgrading of the P₂O₅ grade to >30% is predicted via flotation at a recommended grind size of 106 µm. Subsequent flotation testwork is planned to confirm this. 

Mokopane Tin Project

Results of Zaaiplaats Mineral Resource Estimate

During 2012-2013, a 2067 metre diamond drilling programme was undertaken at the Zaaiplaats Target in order to establish the presence and continuity of disseminated zones of tin mineralisation which have partially mined in the past, and to determine a Maiden Mineral Resource Estimate on these zones. This disseminated tin represents the second of five targets identified within the licence area. The Mineral Resource Estimate at the Zaaiplaats Target is encouraging, and the resource remains open along strike both towards the northeast and the southwest, and could be considerably expanded with additional drilling.

Modelling of the drilling results showed that five sub-parallel mineralised zones (M0 to M4) are identifiable at the Zaaiplaats Target. These zones dip at a shallow angle (~15˚) towards the northwest and vary marginally in thickness and grade along strike. Each zone was modelled separately and the Mineral Resource Estimation has been carried out by SRK Consulting, based on this modelling.  Of the five zones, zones M1 and M2 comprise the bulk of the resource. The majority of the resources were classified as Inferred, with only M1 having resources in the Indicated JORC category. A cut-off grade of 0.07% Tin (Sn) was considered as appropriate for this deposit.

Inferred resources for each mineralised zone at a 0.07% Sn cut-off grade are shown in the table below:

Mineralised Zone	Tons of ore	Grade (% Sn)	Tons of Sn
M0	1,625,000	0.087	1,414
M1	3,706,000	0.113	4,188
M2	4,108,000	0.119	4,878
M3	1,064,000	0.081	862
M4	No mineralisation above cut-off grade
Total	10,503,000	0.108	11,342

Indicated resources (for the M1 zone only) are shown in the table below:

Mineralised Zone	Tons of ore	Grade (% Sn)	Tons of Sn
M1	1,231,000	0.090	1,110

Therefore, at a 0.07% Sn cut-off grade, the total resource comprises 12,452 tons of Sn at an average grade of 0.106% Sn.

The addition of the Zaaiplaats resource to the Mokopane Tin Project inventory has resulted in a substantial increase of 208% in the total tin contained at the project. The combined resource for both the Groenfontein and Zaaiplaats Targets now stands at 18,447 tons of tin (Sn) contained.

The results of this Mineral Resource Estimation will be incorporated into a scoping study on the tin project to be released in October 2013.

Update on Takeover Bid for Lemur Resources

As announced on 30 August 2013, Bushveld extended the offer period under its takeover bid for all of the ordinary shares in Lemur Resources Limited (ASX:LMR) to 13 September 2013. Support for the Company's bid continues to increase and at 12 September 2013, the total number of shares in Lemur Resources Limited ("Lemur") acquired by Bushveld from Lemur shareholders who accepted Bushveld's offer of three Bushveld Shares for every five Lemur Shares had increased to 100,164,413 ordinary shares or a holding of 52.03%. As of 18 September, the total number of Lemur shares owned by Bushveld was 101,440,353, equivalent to a 52.67% holding. The bid remains open until 26 September 2013, unless extended and more acceptances may be received.

Enquiries: [e-mail]

Bushveld Minerals Fortune Mojapelo	[phone]
Fox Davies Jonathan Evans	[phone]
Tavistock Communications Jos Simson/ Nuala Gallagher	[phone]
Tielle Communications Stéphanie Leclercq	[phone]

Notes to the editor

Bushveld Minerals Limited is a mineral development company focused on the Bushveld Iron Ore Project and the Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa. More recently, it has acquired a controlling stake in ASX listed Lemur Resources

The Company was admitted to the AIM Market of the London Stock Exchange in March 2012.

 

END

 

 

MSCGMGMLZRVGFZZ