REG - Ferro-Alloy Rsrcs - First sale of ferro-molybdenum

Ferro-Alloy ResourcesAnnouncement

10/11/2021 07:00

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RNS Number : 8586R  Ferro-Alloy Resources Limited  10 November 2021

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018

 

10 November 2021

Ferro-Alloy Resources Limited ('FAR' or the 'Company' or the 'Group')

 

First sale of ferro-molybdenum and completion of testing of ferro-vanadium

 

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer
of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is
pleased to announce it has made its first commercial sale of ferro-molybdenum
and has completed testing of the production of ferro-vanadium.

 

As announced on 22 September 2021, the Company had started conversion of its
calcium molybdate product into the higher value ferro-molybdenum.  FAR are
now pleased to announce that the first commercial contract for sale has been
signed.

 

The Company is now recovering around 4.5 tonnes per month of ferro-molybdenum
as a by-product from its recovery of vanadium from bought-in concentrates and
this is expected to grow as throughput of the plant increases.  The
molybdenum is initially recovered as calcium molybdate which was previously
sold at a discount to prevailing molybdenum prices, but this is now being
converted and sold as ferro-molybdenum, avoiding the discount.

 

In addition, the Company is pleased to announce that testing of the production
of ferro-vanadium using a similar process to ferro-molybdenum has been
successfully completed, allowing the Company to choose in future whether to
sell its vanadium production as vanadium pentoxide or ferro-vanadium,
depending on which is the most profitable taking account of pricing and costs.
Ferro-vanadium typically sells for some US$3-$4 per kilogramme more than for
the same quantity of vanadium in vanadium pentoxide, roughly reflecting
conversion costs, but the ability to make ferro-vanadium opens up a wider
range of customers and, in particular, customers in Kazakhstan which minimise
transport costs and provide other fiscal advantages.

 

The Company's full range of products available for sale now consist of:

 

·    Ammonium metavanadate (AMV)

·    Vanadium pentoxide

·    Ferro-vanadium

·    Ferro-molybdenum

·    Nickel concentrates

 

 

Nick Bridgen, CEO, commented: "These are two important steps towards
maximising the value we get from our exiting operation, and further
demonstrates our growing technical expertise.

 

"With vanadium prices at a relatively high and stable level, and with our
growing production, our existing operations now fulfil their objective of
providing cash flows to support our feasibility study and ongoing development
of the Balasausqandiq deposit."

 

 

For further information, visit www.ferro-alloy.com
(http://www.ferro-alloy.com/)  or contact:

 

 Ferro-Alloy Resources Limited     Nick Bridgen (CEO)         info@ferro-alloy.com (mailto:bridgen@ferro-alloy.com)

 Shore Capital                     Jerry Keen/Toby Gibbs      +44 207 408 4090

 (Corporate Broker)

 VSA Capital                       Andrew Monk/Simon Barton   +44 (0)203 005 5000

 St Brides Partners Limited        Catherine Leftley          +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
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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