Vametco Mineral Resources and Reserves 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.
04 February 2021
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Vametco Mineral Resources and Reserves u pdate
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage solutions provider, with ownership of high-grade assets in South Africa, ("Bushveld"), is pleased to provide an updated Mineral Resources and Ore Reserves for the Vametco vanadium mine near Brits on the Western Limb of the Bushveld Complex.
Key Highlights
· Ore Reserves have been depleted after 12 months of mining by approximately two per cent from previous Ore Reserve estimate as at 31st December 2019. As at the 31st December 2020, Ore Reserves are reported at 267,200 tonnes V2O5 in magnetite at a grade of 2.02 per cent V2O5 in magnetite (previously 274,100 tonnes V 2 O 5 in magnetite).
· Combined Inferred and Indicated Mineral Resource across three Seams (The Lower, Intermediate and Upper Seams) reported as at the 31st December 2020 at 184.2 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 709.8 thousand tonnes of contained vanadium (previously 185.5 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 714.7 thousand tonnes of contained vanadium).
· Within this, the Ore Reserve in the Probable Category is reported as 46.4 Mt at an average grade of 2.02 per cent V2O5 in magnetite, with an average magnetite content of 28.4 per cent in whole rock for 149,700 tonnes of vanadium (previously 47.4Mt V 2 O 5 in magnetite 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 Lower Seam is the main ore seam and the thickest, ranging from 13.8 to 52.0 metres in thickness, comprising a Probable Reserve of 38.8 Mt at an average grade of 2.05 per cent V2O5 in magnetite, with an average magnetite content of 29.3 per cent in whole rock for 130,500 tonnes of vanadium.
· The decrease in the 2020 Mineral Resource, by 0.68 per cent less tonnes than the 31st January 2019 estimate, is attributed to mining of the seams over the last 12 months. No Mineral Resource Exploration was carried out over the period.
· The decrease in the ore tonnages for the previous Ore Reserve estimate in December 31st 2019 from 47.4 Mt to 46.4 Mt in December 31st 2020 is due to the depletion of lower and Intermediate seams over the 12 month period based on the pit to plant reconciled production data from Vametco.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
"I am pleased to report no significant change in our ore reserve in the past twelve months, except for the depletion that occurs in the ordinary course of mining the deposit. For a deposit with decades of production ahead of it and potential for expansion, this gives us the confidence to pursue our growth targets knowing we have a quality and consistent resource at Vametco."
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Table 1: Vametco Mineral Resource at a cut-off grade of 20% magnetite, as at 31 December 2020 - Gross Basis |
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Class |
Seam Name |
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 |
66.2 |
37.1 |
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Intermediate |
27.9 |
0.67 |
32.8 |
1.91 |
174.8 |
97.9 |
|
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Lower |
107.9 |
0.72 |
32.3 |
2.03 |
709.4 |
397.4 |
|
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Total |
141.5 |
0.74 |
33.8 |
2.00 |
950.5 |
532.4 |
|
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Inferred |
Upper |
10.3 |
1.46 |
63.6 |
1.75 |
114.8 |
64.3 |
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Intermediate |
7.0 |
0.67 |
32.1 |
1.92 |
43.3 |
24.3 |
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Lower |
25.4 |
0.74 |
31.3 |
2.00 |
158.4 |
88.7 |
|
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Total |
42.7 |
0.90 |
39.2 |
1.93 |
316.6 |
177.3 |
|
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Indicated and Inferred |
Upper |
16.0 |
1.45 |
64.4 |
1.76 |
181.0 |
101.4 |
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Intermediate |
35.0 |
0.67 |
32.7 |
1.91 |
218.1 |
122.2 |
|
|
Lower |
133.3 |
0.72 |
32.1 |
2.03 |
867.9 |
486.1 |
|
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Total |
184.2 |
0.78 |
35.0 |
1.98 |
1,267.2 |
709.8 |
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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 using 31 December 2020 pit survey.
7. Reported on a Gross Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.
Table 2: Vametco Mineral Resource at a cut-off grade of 20% magnetite, as at 31 December 2020 - Attributable Basis | |||||||
Class | Seam Name | 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) | ||
Indicated | Upper | 4.2 | 1.44 | 65.9 | 1.78 | 49.0 | 27.4 |
Intermediate | 20.7 | 0.67 | 32.8 | 1.91 | 129.3 | 72.4 | |
Lower | 79.9 | 0.72 | 32.3 | 2.03 | 525.0 | 294.0 | |
Total | 104.7 | 0.74 | 33.8 | 2.00 | 703.4 | 394.0 | |
Inferred | Upper | 7.6 | 1.46 | 63.6 | 1.75 | 84.9 | 47.5 |
Intermediate | 5.2 | 0.67 | 32.1 | 1.92 | 32.1 | 17.9 | |
Lower | 18.8 | 0.74 | 31.3 | 2.00 | 117.2 | 65.6 | |
Total | 31.6 | 0.90 | 39.2 | 1.93 | 234.3 | 131.2 | |
Indicated and Inferred | Upper | 11.8 | 1.45 | 64.4 | 1.76 | 133.9 | 75.0 |
Intermediate | 25.9 | 0.67 | 32.7 | 1.91 | 161.4 | 90.4 | |
Lower | 98.7 | 0.72 | 32.1 | 2.03 | 642.2 | 359.7 | |
Total | 136.3 | 0.78 | 35.0 | 1.98 | 937.7 | 525.2 | |
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 using 31 December 2020 pit survey.
7. Reported on an Attributable Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.
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Table 3: Vametco Ore Reserves, 31 December 2020 - Gross Basis |
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Class |
Seam Name |
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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Probable |
Upper |
0.9 |
0.57 |
26.8 |
1.77 |
4.1 |
2.3 |
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Intermediate |
6.8 |
0.52 |
23.4 |
1.88 |
30.0 |
16.8 |
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Lower |
38.8 |
0.63 |
29.3 |
2.05 |
233.1 |
130.5 |
|
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Total |
46.4 |
0.62 |
28.4 |
2.02 |
267.2 |
149.7 |
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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 Reserves depleted as at 31 December 2020 using 31 December 2020 pit survey.
5. The Ore Reserve estimate was based on the original pit design, modifying factors and Ore Reserves compiled in March 2019 using Surpac Open Pit software.
6. Ore Reserve estimate depleted using Datamine Studio 5DP Open Pit software and latest topography supplied by Vametco as of 31 December 2020.
7. Reported on a Gross Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.
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Table 4: Vametco Ore Reserves, 31 December 2020 - Attributable Basis |
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|
Class |
Seam Name |
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 |
0.6 |
0.57 |
26.8 |
1.77 |
3.0 |
1.7 |
|
Intermediate |
5.0 |
0.52 |
23.4 |
1.88 |
22.2 |
12.4 |
|
|
Lower |
28.7 |
0.63 |
29.3 |
2.05 |
172.5 |
96.6 |
|
|
Total |
34.4 |
0.62 |
28.4 |
2.02 |
197.8 |
110.7 |
|
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 Reserves depleted as at 31 December 2020 using 31 December 2020 pit survey.
5. The Ore Reserve estimate was based on the original pit design, modifying factors and Ore Reserves compiled in March 2019 using Surpac Open Pit software.
6. Ore Reserve estimate depleted using Datamine Studio 5DP Open Pit software and latest topography supplied by Vametco as of 31 December 2020.
7. Reported on an Attributable Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.
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 Richard Viljoen. Professor Richard Viljoen has more than 30 years ' experience in the mining industry, including 15 years as chief consulting geologist for Gold Fields of South Africa. Notable past experience includes the development of significant mines including Northam Platinum and the Leeudoorn and Tarkwa gold mines, identifying and developing a significant platinum deposit in the Bushveld Complex for Akanani Resources as well as acting as consultant for exploration and mining companies in Canada, Mexico, Venezuela, India and China in the fields of base metals, gold and platinum. Professor Richard Viljoen has extensive experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). Professor Richard Viljoen consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
ENDS
Enquiries: info@bushveldminerals.com
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Bushveld Minerals Limited |
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+27 (0) 11 268 6555 |
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Fortune Mojapelo, Chief Executive Officer |
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Chika Edeh, Head of Investor Relations |
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SP Angel Corporate Finance LLP |
Nominated Adviser & Broker |
+44 (0) 20 3470 0470 |
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Richard Morrison / Charlie Bouverat |
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Abigail Wayne / Richard Parlons |
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BMO Capital Markets Limited |
Joint Broker |
+44 (0) 20 7236 1010 |
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Tom Rider |
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Peel Hunt Limited |
Joint Broker |
+44 (0) 20 7418 8900 |
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Ross Allister / Alexander Allen |
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Tavistock |
Financial PR |
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Charles Vivian / Gareth Tredway / Edward Lee |
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+44 (0) 207 920 3150 |
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, integrated, primary vanadium producer, with ownership of high-grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; 100 per cent of Bushveld Vanchem, a primary vanadium processing facility with a beneficiation plant; the Mokopane Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low-cost, integrated primary vanadium producer through owning high grade assets. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries. Bushveld Energy, the Company's energy storage solutions provider, plays a leading role in the development and promotion of the role of vanadium in this market.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they may be 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 Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces mostly Nitrovan , a trademark product sold in major steel markets across the world. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine ("ROM") ore feed to the Vametco plant.
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 mix plant and finally into the shaft furnaces to produce Nitrovan.
About Vanchem
Vanchem is situated at Ferrobank Industrial Park in Emalahleni Local Municipality, Mpumalanga Province in the Republic of South Africa. Vanchem is a primary vanadium producing facility with a beneficiation plant capable of producing various vanadium oxides, ferrovanadium and vanadium chemicals. Vanchem uses the salt roast beneficiation process, similar to the one used at Vametco. The plant comprises: a core salt-roast processing plant, including 3 roasting kilns, an electric smelting ferrovanadium converter, an alumino-thermic smelting facility, also located at Highveld, a vanadium chemical plant; and a rail siding linking the plant with Bushveld deposits and additional potential supply sources through the national rail network.
About Bushveld Energy Limited
Bushveld Energy is a leading energy storage solutions provider, focusing on the African market. Bushveld Energy recognises that the requirement for electricity in Africa touches on both the paramount potential for social transformation wand an immense commercial opportunity.
Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near-term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in Africa, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium. As part of its strategy of partnering with VRFB Original Equipment Manufacturers ("OEM") for the supply of vanadium material, vanadium electrolyte and vanadium electrolyte rental products, the Company is invested in Invinity Energy systems plc and Enerox GmbH through its Vanadium Investment Platform. In addition, Bushveld Energy is developing its own hybrid mini-grid at the Vametco vanadium mine comprising 3.5 megawatts of solar photovoltaic and 4 megawatt hours of VRFB energy storage. In addition, Bushveld Energy is developing a vanadium electrolyte plant in partnership with the Industrial Development Corporation, with an initial 200 megawatt hours capacity, in East London, South Africa.
Glossary of Technical Terms
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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. |
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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 |
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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. |
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Magnetite |
Naturally occurring form of iron ore with the formula Fe3O4. |
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Mt |
Millions of tonnes |
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mt or mtV |
Metric tonne or Metric tonne of Vanadium |
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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." |
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Seam |
a bed or a distinct layer of vein of rock in other layers of rock |
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Vanadium |
Vanadium is a chemical element with the symbol V and atomic number 23. |
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Vanadium Oxide |
Vanadium(V) oxide is the inorganic compound with the formula V 2 O 5 . |
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