REG - Ferro-Alloy Rsrcs - Existing Operation H1 Production Results

Ferro-Alloy ResourcesAnnouncement

17/07/2023 07:00

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RNS Number : 1455G  Ferro-Alloy Resources Limited  17 July 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT FORMS PART OF THE LAWS OF
ENGLAND AND WALES BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018
("MAR").

 

17 July 2023

Ferro-Alloy Resources Limited

("Ferro-Alloy" or the "Group" or the "Company")

 

Existing Operation H1 Production Results

 

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer
of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is
pleased to announce the production results of the Group's existing operation
for the first half of 2023.

 

Highlights

·    All factory upgrades previously announced,  focussed on increasing
production and recovering more value from each tonne treated, now completed
and in operation

·    Following these upgrades, Q2 2023 was the best production quarter
achieved by the Group to date in terms of both tonnes of concentrates treated
and tonnes of metal recovered across all product lines

·    Secondary repulpation circuit for further vanadium recovery now in
operation

·    Successful conversion of ammonium metavanadate to vanadium pentoxide
in new drying oven, dependent on customer requirements

·    All roasting equipment used by the Group to be powered by natural
liquid gas, rather than diesel, from Q3 2023 onwards increasing reliability of
supply, lowering costs and reducing emissions

·    Further contracts for vanadium concentrate supplies signed by the
Group to increase reliability of supply

·    Contracts for selling nickel concentrate with new customers on
improved commercial terms have been signed

 

 

H1 2023 Production Results

 

 

                                         2022                                 2023 YTD
                                         Q1     Q2     Q3     Q4     2022     Q1     Q2       H1 TOTAL

                                                                     TOTAL

 Tonnes of concentrate processed         502.3  644.9  538.4  396.2  2,081.8  194.1  1,016.6  1,210.7

 Tonnes of vanadium pentoxide produced*  81.1   91.7   69.9   62.8   305.5    31.3   141.4    172.7

 Tonnes of molybdenum produced**         11.3   10.4   11.0   3.3    36.0     6.5    14.1     20.6

 Tonnes of nickel produced***            25.1   32.2   26.9   19.8   104.0    9.7    50.8     60.5

 

*     as ammonium metavanadate

**   as ferro-molybdenum

*** as nickel concentrate

 

It is the Company's intention to update shareholders on production on a
quarterly basis.

 

Commenting on the production results, Nick Bridgen, CEO of Ferro-Alloy
Resources said:

"I am delighted to report that the plant modifications are now complete and
operating efficiently, as demonstrated by our Q2 production figures.
Crucially, we now recover the maximum of all the valuable components of the
raw materials meaning a great deal more value is extracted from each tonne
treated and no tailings or other residues remain on site.

With the plant now operating in steady-state and additional concentrate supply
contracts in place going into the second half of the year, we expect
production to continue on this upward trajectory."

 

For further information, visit www.ferro-alloy.com or contact:

 

 Ferro-Alloy Resources Limited     Nick Bridgen (CEO) / William Callewaert (CFO)  info@ferro-alloy.com

 Shore Capital                     Toby Gibbs/Lucy Bowden                         +44 207 408 4090

 (Joint Corporate Broker)

 Liberum Capital Limited           Scott Mathieson/Kane Collings/William King     +44 20 3100 2000

 (Joint Corporate Broker)
 St Brides Partners Limited        Catherine Leftley/Ana Ribeiro                  +44 207 236 1177

 (Financial PR & IR Adviser)

 

About Ferro-Alloy Resources Limited:

The Company's operations are all located at the Balasausqandiq deposit in
Kyzylordinskoye Oblast in the South of Kazakhstan. Currently the Company has
two main business activities:

a) the high grade Balasausqandiq vanadium project (the "Project"); and

b) an existing vanadium concentrate processing operation (the "Existing
Operation")

Balasausqandiq is a very large deposit, with vanadium as the principal product
together with several by-products. Owing to the nature of the ore, the capital
and operating costs of development are very much lower than for other vanadium
projects.

The most recent mineral resource estimate for ore-body one (of seven) provided
an Indicated Mineral Resource of 32.9 million tonnes at a mean grade of 0.62%
V(2)O(5) equating to 203,364 contained tonnes of vanadium pentoxide
("V(2)O(5)"). In the system of reserve estimation used in Kazakhstan the
reserves are estimated to be over 70m tonnes in ore-bodies 1 to 5 but this
does not include the full depth of ore-bodies 2 to 5 or the remaining
ore-bodies which remain substantially unexplored.

The Project will be developed in two phases, Phase 1 and Phase 2, treating 1m
tonnes per year and an additional 3m tonnes per year. Production will be some
5,600 tonnes of V(2)O(5) from Phase 1, rising to 22,400 tonnes V(2)O(5) after
Phase 2 is commissioned.

There is an existing concentrate processing operation at the site of the
Balasausqandiq deposit. The production facilities were originally created from
a 15,000 tonnes per year pilot plant which was then expanded and adapted to
recover vanadium, molybdenum and nickel from purchased concentrates.

The existing operation is located on the same site and uses some of the same
infrastructure as the Project, but is a separate operation which will continue
in parallel with the development and operation of the Project.

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