REG - Ferro-Alloy Rsrcs - Existing Operation Q3 Production Results

Ferro-Alloy ResourcesAnnouncement

10/10/2023 13:01

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RNS Number : 6592P  Ferro-Alloy Resources Limited  10 October 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").

 

10 October 2023

Ferro-Alloy Resources Limited

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

 

Existing Operation Q3 Production Results

 

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer
of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, announces
the production results of the Group's existing operation for Q3 2023.

 

Q3 Production Results

 

                                         2022                                   2023
                                         Q1     Q2     Q3     TOTAL             Q1     Q2       Q3     TOTAL YTD

                                         2022   2022   2022   Q1, Q2 & Q3       2023   2023     2023

 Tonnes of concentrate processed         502.3  644.9  538.4  1,685.6           194.1  1,016.6  314.0  1,524.7

 Tonnes of vanadium pentoxide produced*  81.1   91.7   69.9   242.7             31.3   141.4    47.3   220.0

 Tonnes of molybdenum produced**         11.3   10.4   11.0   32.7              6.5    14.1     6.4    27.0

 Tonnes of nickel produced***            25.1   32.2   26.9   84.2              9.7    50.8     15.7   76.2

 

*     as ammonium metavanadate

**   as ferro-molybdenum

*** as nickel concentrate

 

Production Update

As previously announced, the default by one of the Company's major concentrate
suppliers has significantly impacted output from the existing operation
throughout the year to date.  In response, the Company has entered into a
number of additional contracts with other concentrate suppliers, but delivery
has taken longer than anticipated with the shortage persisting throughout Q3
and into the beginning of Q4.

However, concentrates sufficient for nearly four months of planned production
are either now on site or in transit, and the Company is confident that there
will be sufficient concentrates to allow the resumption of full operations
from now on.

 

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

"In Q2 this year, we experienced our best production quarter to date,
demonstrating the improvements made to our processing factory in terms of
throughput and recovery, including new capacity for recovering molybdenum and
nickel as well as vanadium. Unfortunately, and as we have already announced,
output has been restricted by defaults by our suppliers in addition to
logistics delays.

"That being said, with the steps that we've taken to increase the quality and
number of concentrate suppliers we deal with, the deliveries that have been
made to site in the last few days and the pipeline of deliveries already in
transit, we are confident that production will not be affected by any
foreseeable supply shortages this year and beyond."

 

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                  +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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