REG - Ferro-Alloy Rsrcs - Feasibility Study: Drilling Programme Completes

Ferro-Alloy ResourcesAnnouncement

07/12/2022 07:01

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RNS Number : 8086I  Ferro-Alloy Resources Limited  07 December 2022

 

 

7 December 2022

Ferro-Alloy Resources Limited

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

 

Feasibility Study Update

 

Completion of Drilling Programme for 2022

 

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 completion of drilling for ore body one ("OB1") and
the partial completion of drilling on ore bodies 2, 3 and 4 ("OB2, OB3 and
OB4"), following a total of 19,720 metres of drilling undertaken in 2022.

Phase 1 Update

The Company has previously announced a resource and a reserve estimate for OB1
of 23 million tonnes, sufficient for a mine-life of more than 20 years for
Phase 1 of the project (processing 1 million tonnes of ore per year).

As part of the ongoing bankable feasibility study ("BFS"), and with the
objective of ensuring a high degree of definition of the OB1 folded deposit,
the decision was taken to increase the drilling meterage on OB1 and the
Company provides the following update:

·    OB1 drilling programme now complete;

·    Assaying for OB1 is expected to be completed by the end of December
2022;

·    Updated resource estimate for OB1 expected to be finalised by SRK
Consulting (Kazakhstan) Limited and announced during Q1 2023; and

·    Ore reserves required to support Phase 1 of the project will be
derived from the revised resource estimates as part of the BFS.

 

Phase 2 Update

The drilling programme for OB2, OB3 and OB4, that will support Phase 2 of the
project (an additional 3 million tonnes of ore processed per year), has been
completed so far as possible. There is an area of difficult topography (not
expected to create difficulties for actual mining) and the Company is
currently assessing the options available to access the undrilled area or omit
it from the BFS if sufficient tonnes of resource and reserve are assessed from
the remaining area.

 

Nick Bridgen, CEO, commented: "I am very pleased to report the completion of
the drilling programme for OB1, and the drilling progress made that will
support Phase 2. The early results of the expanded bankable feasibility study
are expected to confirm the potential for Balasausqandiq to become a globally
significant vanadium operation, and I look forward to updating our
shareholders on the results of the exploration and metallurgical programmes
in the New Year."

ENDS

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/John More                           +44 207 408 4090

 (Joint Corporate Broker)

 Liberum Capital Limited           Scott Mathieson/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 the
Kyzylordinskaya 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.

A reserve on the JORC 2012 basis has been estimated only for the first
ore-body (of five) which amounts to 23 million tonnes, not including the small
amounts of near-surface oxidised material which is in the Inferred resource
category. 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.

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 adapted to treat
concentrates and expanded. Further expansion is being undertaken which is
expected to result in annualised production capacity of around 1,500 tonnes of
contained vanadium pentoxide plus significant by-product molybdenum.

The strategy of the Company is to develop both the Project and the Existing
Operation in parallel. Although they are located on the same site and use some
of the same infrastructure, they are separate operations.

 

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