REG - Bushveld Minerals Ld - Q1 2023 Operational Update
27/04/2023 07:00
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RNS Number : 6164X Bushveld Minerals Limited 27 April 2023
Market Abuse Regulation ("MAR") Disclosure
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
27 April 2023
Bushveld Minerals Limited
("Bushveld Minerals", "Bushveld" or the "Company")
Q1 2023 Operational Update, Vametco Mineral Reserve and Resource and Lemur
Mineral Resource.
Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium
producer and energy storage solutions provider, today provides an operational
update for the three months ending 31 March 2023.
Group Highlights
§ Production for Q1 2023 of 943 mtV (Q1 2022: 973 mtV).
§ Weighted average production cash cost(1) (C1) for Q1 2023 of US$25.9/kgV
(Q1 2022: US$26.6/kgV).
§ Increase in sales for Q1 2023 of 1,028 mtV (Q1 2022: 857 mtV), owing to
increased sales out of inventory.
§ Secured a third-party low-silica feed for Vanchem to support more stable
production rates at no additional cost.
§ Completed construction and cold commissioning of the BELCO electrolyte
plant.
1. Weighted average production cash cost (C1): is the blended weighted
average production cash cost (C1) of Vametco and Vanchem, divided by group
production.
2023 Group Guidance
§ Group production guidance for 2023 maintained at between 4,200 mtV and
4,500 mtV.
§ Maintained Group weighted average production cash cost (C1) guidance of
between US$26.1kgV and US$27.0/kgV, (ZAR447/kgV and 438/kgV).
- Vametco production cash cost (C1) guidance of between US$23.6kgV and
US$24.0/kgV, (ZAR396/kgV and R402kgV).
- Vanchem production cash cost1 (C1) guidance of between US$29.7kgV
and US$30.8kgV, (ZAR498/kgV and ZAR517kgV).
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
"We are on track to meet annual group production and cost guidance. Vanchem's
power curtailment solution with the local municipality announced recently, has
so far provided a more reliable feed of electricity contributing to improved
operational stability in the months of March and April. In addition, securing
third party, low silica feed for Vanchem will support more stable production
going forward. Vametco performed consistently against the comparable period in
2022, albeit there was disruption as a result of high rainfall and work to
replace the secondary crusher.
I'm pleased to report our sales volumes increased by 20% in the quarter after
we decided to drawdown on Vanchem's inventory from 2022, during this drawdown
phase we undertook a two-week maintenance at the facility."
Conference call
Bushveld Minerals Chief Executive Officer, Fortune Mojapelo will host a
conference call at 1:00pm UK time (2:00 pm SAST) today to discuss the
quarterly update with analysts and investors. Participants may join the call
by dialling:
Tel: United Kingdom: +44 (0) 330 551 0200; South Africa: Toll Free: 0 800
980 512, USA Local: +1 786 697 3501
Password: Quote Bushveld Q1 Results when prompted by the operator.
A replay of the conference call will be available on the Company's website
post the call.
BUSHVELD VANADIUM
Q1 2023 vs Q1 2023 vs
Group(1) Unit Q1 2023 Q1 2022 Q4 2022
Production mtV(2) 943 -3.0% -20.3%
Weighted average production cash cost1 (C1) US$/KgV 25.9 -2.6% 3.2%
Sales(3) mtV(2) 1,028 20.0% 13.5%
1. Based on provisional, unaudited figures.
2. mtV = metric tonnes of vanadium.
3. Reported as final sales to customers.
VAMETCO
Operational highlights for Vametco (on a 100% basis)(1)
Description Unit Q1 2023 Q1 2023 vs Q1 2023 vs
Q1 2022 Q4 2022
Ore mined Tonnes 336 089 -21.1% -20.8%
Total mined (ore + waste) Tonnes 1 296 854 47.0% 0.5%
Ore grade (in Whole Rock) % V(2)O(5) 0.71 -11.3% -18.4%
Concentrate produced Tonnes 83 175 -16.5% 16.5%
Concentrate grade % V 1.05 0% 5.0%
Recovery from Kiln to MVO % 73.7 3.3% 4.2%
Production (Nitro Vanadium) mtV(2) 682 -8.9% -16.1%
Production cash cost (C1)(3) ZAR/KgV 404.7 20.1% 8.7%
Production cash cost (C1)(3) US$/KgV 22.8 3.2% 8.1%
Foreign exchange rate ZAR: USD 17.8 16.8% 0.7%
1. Based on provisional, unaudited figures. Bushveld's net
attributable interest of the above figures is approximately 74%. Production
cash cost is based on vanadium produced.
2. mtV = metric tonnes of vanadium.
3. Excludes depreciation, royalties and selling, general &
administrative expenses. Production cash cost is based on vanadium produced.
Production cash cost (C1) measure does not have any standardized meaning
prescribed by IFRS and differs from measures determined in accordance with
IFRS. This measure is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. This measure is not necessarily indicative
of net earnings or cash flow from operating activities as determined under
IFRS.
Production
§ Q1 2023 production of 682 mtV (Q1 2022: 749 mtV), (Q4 2022: 812 mtV)
impacted by 10-days of high rainfall and a one-week maintenance shutdown to
replace the secondary crusher.
§ Annual 30-day planned maintenance shutdown is now expected during Q3 2023,
previously Q2 2023 due to increased confidence in the Kiln's current
performance levels.
Costs
§ Q1 2023 production cash cost (C1) of US$22.8/kgV (Q1 2022: US$22.1/kgV) (Q4
2022: US$21.1/kgV), mainly due to lower production volumes during the quarter.
VANCHEM
Operational highlights for Vanchem(1)
Description Unit Q1 2023 Q1 2023 vs Q1 2022 Q1 2023 vs Q4 2022
Ore Milled Tonnes 82 790 80.3% -8.7%
Ore Grade (in Whole Rock) % V(2)O(5) 1.40 3.7% 8.6%
Milled ore to Kiln Tonnes 64 848 94.3% 4.9%
Milled Ore Grade % V 0.95 -1.8% -0.7%
Recovery: Kiln to Final Product % 71.5 18.0% 16.0%
Chemicals mtV(2) 23 -36.2% -58.4%
Flake mtV(2) 15 118.3% 100.0%
FeV mtV(2) 223 23.7% 112.5%
Total production mtV(2) 261 16.9% -29.7%
Production cash cost (C1)(3) ZAR/kgV 605.5 3.0% 1.5%
Production cash cost (C1)(3) US$/kgV 34.1 -11.6% 0.8%
Foreign exchange ZAR: USD 17.8 16.6% 0.7%
1. Based on provisional, unaudited figures.
2. mtV = metric tonnes of vanadium
3. Excludes depreciation, royalties and selling, general &
administrative expenses. Production cash cost is based on vanadium produced.
Production cash cost (C1) measure does not have any standardized meaning
prescribed by IFRS and differs from measures determined in accordance with
IFRS. This measure is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. This measure is not necessarily indicative
of net earnings or cash flow from operating activities as determined under
IFRS.
Production
§ Q1 2023 production of 261 mtV (Q1 2022: 224 mtV) supported by improved
Kiln-3 availability, and the electricity curtailment solution introduced in
November 2022.
- 121 mtV produced during the months of January and February
collectively.
- 141 mtV produced during the month of March with 117 mtV as at 24
April, supported by improved operational stability.
§ Q1 2023 production of 261 mtV (Q4 2022: 372 mtV) is below Q4 2022 as an
opportunity was identified to drawdown on inventory from 2022 and a two-week
maintenance was undertaken during this drawdown phase.
§ A new supply agreement for lower-silica ore than the Upper seam ore, has
been agreed at Vanchem with a third party, and it is anticipated to allow for
higher recoveries, resulting in a more stable production rates at no
additional costs.
§ Annual 25-day maintenance planned for Q3 2023.
Costs
§ Q1 2023 production cash cost (C1) of US$34.1/kgV (Q1 2022: US$38.6/kgV)
supported by a weaker ZAR:USD exchange rate and higher production volumes.
§ Q1 2023 production cash cost (C1) of US$34.1/kgV (Q4 2022: US$33.8/kgV)
mainly due to lower production volume.
- Costs are expected to decrease during the course of the year and be
in line with guidance.
BELCO
Construction and cold commissioning of the BELCO electrolyte manufacturing
plant was completed during the quarter and hot commissioning commenced during
the period. The plant has a targeted annual capacity of 8 million litres of
vanadium electrolyte. Discussions are ongoing with the end users in relation
to sales and off-take agreements. BELCO is 55% owned by Bushveld Energy, and
45% by the Industrial Development Corporation.
VAMETCO MINI GRID
The project's 1 MW/4 MWh VRFB supplied by CellCube, a VRFB original equipment
manufacturer arrived on site at the Vametco mine during Q1 2023. The
construction and commissioning of the 3.5 MW solar PV and 1MW / 4 MWh Mini
grid project is due for completion mid-2023. The hybrid mini grid will supply
just under 10 percent of the mine's electricity needs.
HEALTH AND SAFETY
§ Q1 2023 Total Recordable Injury Frequency Rate of 3.67 (Q1 2022: 7.62) a
51% improvement as a result of continued focus on the safety improvement
program from safety diagnostic assessment.
VANADIUM PRICE AND OUTLOOK
§ Q1 2023 Ferrovanadium prices across all markets averaged: London Metal
Bulletin US$39.4/kgV, (Q1 2022: US$46.1/kgV). CRU Ryan's notes and Asian
Metals averaged US$42.5/kgV and US$37.8/kgV (Q2 2022: US$49.6kgV; US$38.0/kgV)
respectively.
§ Sales into the higher value markets (aerospace application, speciality
alloy and chemicals) and higher price markets (Nitro Vanadium in North
America) continue to be prioritised to maximise income. The respective returns
are continually evaluated with changes in pricing in the various regions to
ensure optimal revenue.
§ Demand for our entire range of products remains strong and sales equal
production volumes. We continue to market our products across the globe to
ensure our continued presence in all major regions to optimise our sales
volumes.
§ The previous logistical challenges experienced have abated somewhat
although transit times are still extended on an arbitrary basis.
MINERAL RESOURCES AND RESERVES UPDATE
Vametco Updated Minerals Reserve and Resource.
Vametco's resource and reserve estimates are based on the Competent Person's
statements prepared by an independent consultancy company, the MSA Group (Pty)
Ltd as at 31 December 2022 in accordance with the terminology and definitions
given in the JORC Code (2012).
Key Highlights
§ The Ore Reserves are reported as at 31 December 2022 at 264,600 tonnes
V(2)O(5) in magnetite at a grade of 1.99 per cent V(2)O(5) (in magnetite),
following mining depletion during the 12 month period (31 December 2021 is
262,000 tonnes V(2)O(5)).
§ The combined Inferred and Indicated Mineral Resource comprises 3 Seams (The
Lower, Intermediate, and Upper Seams) and is reported at 181.5 Mt at an
average grade of 1.98 per cent V(2)O(5) (in magnetite) as at 31 December 2022
(182.7 Mt at an average grade of 1.98 per cent V(2)O(5) (in magnetite) as
at 31 December 2021), with an average magnetite content of 35.0 per cent (in
whole rock) for 699.0 thousand tonnes of contained vanadium. (703.9 thousand
tonnes of contained vanadium as at December 2021).
§ Within this, the Ore Reserve in the Probable Category comprises 3 Seams
(The Lower, Intermediate, and Upper Seams) and is reported as 46.4 Mt at an
average grade of 1.99 per cent V(2)O(5) (in magnetite), with an average
magnetite content of 28.7 per cent (in whole rock) for 148,200 tonnes of
vanadium.
§ The decrease in the total 2022 Mineral Resource is attributed to mining of
the seams over the 12 months between the 31 December 2021 estimate. No Mineral
Resource exploration was carried out over the period.
§ The increase in the total 2022 Ore Reserves from 45.3 Mt to 46.4 Mt as at
31 December 2022 is mainly due to the impact of the revised Vametco pit design
(September 2022) which incorporated additional Upper and Intermediate Seam
tonnage. The additional tonnage was offset by the Ore Reserve depletion which
was calculated to be 1.2 Mt for the combined Seams, mined over the 12-month
period.
§ An adjustment was made to the modifying factors to reflect more accurate
Ore Reserve grades for the individual seams. The Ore Reserve modifying factors
(mining loss and dilution) were adjusted based on pit to plant reconciliation
production data supplied by Bushveld Vametco Alloys (Pty) Ltd. The impact of
the revised Pit Design and adjustment to modifying factors is an additional
2.3 Mt.
The full report of the mineral resources and reserves is available on the
Company website: https://www.bushveldminerals.com/technical-reports/
(https://www.bushveldminerals.com/technical-reports/)
Table 1: Vametco Mineral Resource at a cut-off grade of 20% magnetite, as at
31 December 2022 - Gross Basis
V(2)O(5) grade of whole rock Magnetite grade of whole rock V(2)O(5) grade in magnetite Tonnes V(2)O(5) in magnetite Tonnes V in magnetite
Class Seam Name Tonnes % % % (Thousands) (Thousands)
(Millions)
Upper 5.4 1.44 65.9 1.78 62.7 35.1
Intermediate 27.6 0.67 32.9 1.91 173.1 97.0
Indicated Lower 105.9 0.72 32.4 2.03 697.2 390.4
Total 139.0 0.74 33.8 2.00 933.0 522.5
Upper 10.2 1.46 63.6 1.75 113.3 63.5
Intermediate 7.0 0.67 32.1 1.92 43.4 24.3
Inferred Lower 25.4 0.74 31.3 2.00 158.4 88.7
Total 42.6 0.90 39.1 1.93 315.2 176.5
Upper 15.5 1.45 64.4 1.76 176.0 98.6
Indicated and Intermediate 34.7 0.67 32.7 1.91 216.5 121.3
Inferred Lower 131.3 0.72 32.1 2.03 855.6 479.2
Total 181.5 0.77 35.0 1.98 1,248.2 699.0
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 the January 2023 pit survey.
7. Reported on a Gross Basis. Bushveld Minerals shareholding in
Bushveld Vametco Alloys is 74%.
Table 2: Vametco Mineral Resource at a cut-off grade of 20% magnetite, as at
31 December 2022 - Attributable Basis
V(2)O(5) grade of whole rock Magnetite grade of whole rock V(2)O(5) grade in magnetite Tonnes V(2)O(5) in magnetite Tonnes V in magnetite
Class Seam Name Tonnes % % % (Thousands) (Thousands)
(Millions)
Upper 4.0 1.44 65.9 1.78 46.4 26.0
Intermediate 20.5 0.67 32.9 1.91 128.1 71.8
Indicated Lower 78.4 0.72 32.4 2.03 515.9 288.9
Total 102.8 0.74 33.8 2.00 690.4 386.6
Upper 7.5 1.46 63.6 1.75 83.9 47.0
Intermediate 5.2 0.67 32.1 1.92 32.1 18.0
Inferred Lower 18.8 0.74 31.3 2.00 117.2 65.7
Total 31.5 0.90 39.1 1.93 233.2 130.6
Upper 11.5 1.45 64.4 1.76 130.3 73.0
Indicated and Intermediate 25.7 0.67 32.7 1.91 160.2 89.7
Inferred Lower 97.2 0.72 32.1 2.03 633.2 354.6
Total 134.3 0.77 35.0 1.98 923.7 517.3
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 using the January 2023 pit survey.
7. Reported on an Attributable Basis. Bushveld Minerals
shareholding in Bushveld Vametco Alloys is 74%.
Table 3: Vametco Ore Reserves, 31 December 2022 - Gross Basis
V(2)O(5) grade of whole rock Magnetite grade of whole rock V2O5 grade in magnetite Tonnes V2O5 in magnetite Tonnes V in magnetite
Tonnes
Class Seam Name
(Millions) % % % (Thousands) (Thousands)
Upper 1.9 1.07 50.2 1.77 16.7 9.3
Probable
Intermediate 8.3 0.57 26.7 1.87 41.3 23.1
Lower 36.2 0.62 28.1 2.03 206.7 115.7
Total 46.4 0.63 28.7 1.99 264.6 148.2
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 run of mine (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 2022 using 31 December
2022 pit survey.
5. Ore Reserve estimate was based on a revised pit design
completed in September 2022.
6. Ore Reserve modifying factors adjusted by seam based on
analysis of pit to plant production information.
7. Ore Reserve estimate depleted using Datamine Studio 5DP Open
Pit software and latest topography supplied by Vametco as of 31 December 2022.
8. Reported on a Gross Basis. Bushveld Minerals shareholding in
Bushveld Vametco Alloys is 74%.
Table 4: Vametco Ore Reserves, 31 December 2022 - Attributable Basis
V(2)O(5) grade of whole rock Magnetite grade of whole rock V(2)O(5) grade in magnetite Tonnes V(2)O(5) in magnetite Tonnes V in magnetite
Tonnes
Class Seam Name
(Millions) % % % (Thousands) (Thousands)
Upper 1.4 1.07 50.2 1.77 12.4 6.9
Probable
Intermediate 6.1 0.57 26.7 1.87 30.5 17.1
Lower 26.8 0.62 28.1 2.03 152.9 85.6
Total 34.3 0.63 28.7 1.99 195.8 109.7
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 run of mine (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 2022 using 31 December
2022 pit survey.
5. Ore Reserve estimate was based on a revised pit design
completed in September 2022
6. Ore Reserve modifying factors adjusted by seam based on
analysis of pit to plant production information.
7. Ore Reserve estimate depleted using Datamine Studio 5DP Open
Pit software and latest topography supplied by Vametco as of 31 December 2022.
8. Reported on an Attributable Basis. Bushveld Minerals
shareholding in Bushveld Vametco Alloys is 74%.
Lemur Holdings Limited
The Mineral Resource estimates are based on the competent person's report
prepared by Sumsare Consulting Group CC.
Key highlights
§ An updated gross tonnage in-situ (GTIS) of 140 387 has been reported in
the three seams: main, upper, and top seams. This represents a 3%
increase from the GTIS of 135 737 reported in 2019.
§ The increase in the resource estimate is attributed to new data made
available from the 10 new diamond drillholes drilled in 2021.
§ The updated coal resource estimate contained in 3 main coal seams amounts
to a mineable tonnage in situ (MTIS) of 116.411 million tons (Mt). Of this
76.500 Mt is estimated to be at a measured status with the balance of 33.274
Mt and 6.637 Mt at indicated and inferred levels of confidence, respectively.
§ Reporting of Mineable tons in-situ (MTIS) is in response to the new
reporting guidelines of SAMREC (2016), SANS 10320 (2016) which is unique for
the systematic evaluation of coal resources and coal reserves.
The full report of the mineral resources and reserves is available on the
Company website: https://www.bushveldminerals.com/technical-reports/
(https://www.bushveldminerals.com/technical-reports/)
Table 1: Resource for the Imaloto coal project
Category Gross Mineable (SAMREC 2016) Operator
Nett attributable (99 %)
Raw Coal Quality (ADB) Raw Coal Quality (ADB) Raw Coal Quality (ADB)
GTIS MTIS MTIS
Tonnes (Mt) Tonnes (Mt) Tonnes (Mt)
Ash (%) CV (MJ/kg) Ash (%) CV (MJ/kg) Ash (%) CV (MJ/kg)
Coal Resources per asset
Lemur Holdings (Ltd).
Measured 90.448 33.5 19.26 76.500 33.5 19.26 75.735 33.5 19.26
Indicated 41.206 37.0 17.66 33.274 37.0 17.66 32.941 37.0 17.66
Inferred 8.733 36.6 18.42 6.637 36.6 18.42 6.571 36.6 18.42
Sub-Total 49.939 36.9 17.79 39.911 36.9 17.79 39.512 36.9 17.79
Total 140.387 34.7 18.74 116.411 34.7 18.75 115.247 34.7 18.75
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 Troth Saindi, the Group Geologist for Bushveld
Minerals SA (Pty) Ltd. Troth has 17 years' experience in economic geology and
mineral resource management. His experience extends through several
commodities including precious metals, PGEs and base metals. He is a member of
the South African Council for Natural Scientific Professions (SACNASP -
400171/13), as well as a Fellow of the Geological Society of South Africa
(FGSSA - 965810) in good standing. One of his major achievements in the
exploration industry was the involvement in the target generation and
discovery of the new Waterberg Platinum PGE deposit for Platinum Group Metals
RSA (Pty) Ltd in the Northern Limb of the Bushveld Igneous Complex in South
Africa. Troth has 9 years' experience in Fe-V-Ti Mineral Resources, which is
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). Troth Saindi 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
Bushveld Minerals Limited +27 (0) 11 268 6555
Fortune Mojapelo, Chief Executive Officer
Chika Edeh, Head of Investor Relations
SP Angel Corporate Finance LLP Nominated Adviser & Broker +44 (0) 20 3470 0470
Richard Morrison / Charlie Bouverat
Grant Baker / Richard Parlons
RBC Capital Markets Joint Broker +44 (0) 20 7653 4000
Jonathan Hardy / Caitlin Leopold
Tavistock Financial PR
Gareth Tredway / Tara Vivian-Neal / Adam Baynes +44 (0) 207 920 3150
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, vertically integrated primary vanadium
producer. It is one of only three operating primary vanadium producers, owning
2 of the world's 4 operating primary vanadium processing facilities. In 2022,
the Company produced 3,842 mtV, representing more than 3% of the global
vanadium market. Bushveld Vanadium is targeting to grow its vanadium
production and achieve an annualised steady state production run rate of
between 5,000 mtVp.a. and 5,400 mtVp.a in the near term from existing
capacity. Growth plans to expand to 8,000 mtVp.a. will be pursued, subject to
funding and market conditions.With a diversified vanadium product portfolio
serving the needs of the steel, energy and chemical sectors, the Company
participates in the entire vanadium value chain through its two main pillars:
Bushveld Vanadium, which mines and processes vanadium ore; and Bushveld
Energy, an energy storage solutions provider.
Bushveld Energy is focused on developing and promoting the role of vanadium
in the growing global energy storage market through the advancement of
vanadium-based energy storage systems, specifically Vanadium Redox Flow
Batteries ("VRFBs")
Detailed information on the Company and progress to date can be accessed on
the website www.bushveldminerals.com (http://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 Nitro Vanadium. 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 concentrate is fed into the extraction process which consists of
a rotary kiln for roasting followed by leaching and precipitation. Thereafter
the precipitated vanadium as ammonium metavanadate is converted to modified
vanadium oxide ("MVO") in a rotary calciner. MVO is fed into the mix plant and
finally into the shaft furnaces to produce Nitro Vanadium.
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.
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.
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
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.
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.
JORC Code
The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the "JORC Code"), a professional code of practice that sets
minimum standards for Public Reporting of minerals Exploration Results,
Mineral Resources and Ore Reserves.
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 Reserves
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 V(2)O(5).
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.
JORC Code The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the "JORC Code"), a professional code of practice that sets
minimum standards for Public Reporting of minerals Exploration Results,
Mineral Resources and Ore Reserves.
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 Reserves 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 V(2)O(5).
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