REG - Ferro-Alloy Rsrcs - Q4 2023 Production Results

Ferro-Alloy ResourcesAnnouncement

12/01/2024 07:00

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RNS Number : 4467Z  Ferro-Alloy Resources Limited  12 January 2024

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").

 

12 January 2024

Ferro-Alloy Resources Limited

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

 

 Q4 2023 Production Results

Sustained or Increased Production Achieved

 

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 Q4 2023.

 

Q4 Production Results

 

                                         2022                                  2023
                                         Q1     Q2     Q3     Q4               Q1     Q2       Q3     Q4     FY 2023  FY % change

                                         2022   2022   2022   2022   FY 2022   2023   2023     2023   2023

 Tonnes of concentrate processed         502.3  644.9  538.4  396.2  2,081.8   194.1  1,016.6  314.0  703.3  2,228.0  7.0%

 Tonnes of vanadium pentoxide produced*  81.1   91.7   69.9   62.8   305.5     31.3   141.4    47.3   90.5   310.5    1.6%

 Tonnes of molybdenum produced**         11.3   10.4   11.0   3.3    36.0      6.5    14.1     6.4    7.4    34.4     -4.4%

 Tonnes of nickel produced***            25.1   32.2   26.9   19.8   104.0     9.7    50.8     15.7   35.2   111.4    7.1%

 

*     partly contained in ammonium metavanadate

**   in ferro-molybdenum

*** in nickel concentrate

 

Production Outlook

As announced on 10 October 2023, in order to secure a regular supply of
concentrate, the Company entered into a number of contracts with different
suppliers. As a result, the Company is currently holding a significant stock
of concentrates, sufficient for around seven months of production at current
rates.

The stockpiled concentrates require longer process-residence times than
hitherto, so the Company expects that production during the first two quarters
of 2024 will be similar to that of Q4 2023. The Company aims to increase
production by treating different and higher quality concentrates as they
become available.

 

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

"The existing plant is operating well and in spite of the different
characteristics we have found with the new concentrates, it's pleasing to
report sustained or slightly increased production. Our main task remains to
complete the feasibility study into the Balasausqandiq project, the results to
date of which meet our previous expectations."

 

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        Ana Ribeiro / Zoe Briggs                       +44 207 236 1177

 (Financial PR & IR Adviser)

 

Notes to Editors

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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