TIDMBMN
RNS Number : 7720Z
Bushveld Minerals Limited
22 May 2019
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
22 May 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Vametco Inferred & Indicated Mineral Resource and Ore
Reserve Update
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated
primary vanadium producer, with ownership of high grade vanadium
assets, is pleased to provide an updated Mineral Resource and Ore
Reserve for the Vametco vanadium mine near Brits on the Western
Limb of the Bushveld Complex. The updated Mineral Resource and Ore
Reserve incorporates data from the 2018 drilling campaign
comprising 13 drillholes over a total of 1,506 m of diamond
drilling, and has been compiled in accordance with JORC (2012).
Key Highlights
-- Ore Reserves have more than doubled to 279,100 tonnes V(2)
O(5) in magnetite (previously 137,152 tonnes V(2) O(5) in
magnetite), notwithstanding production of approximately 5,700
metric tonnes of vanadium (between October 2017 and March 2019)
while the grade has increased by 3 per cent to 2.02 per cent V(2)
O(5) (previously 1.96 per cent V(2) O(5) ).
-- Indicated Resources have increased by 187 per cent. to
965,900 tonnes of V(2) O(5) in magnetite
(previously 336,604 tonnes V(2) O(5) in magnetite).
-- The recently drilled holes added further confidence to the
Mineral Resource resulting in a higher ratio of Indicated Mineral
Resource to the Inferred Mineral Resources, constituting 75 per
cent. of the Total Mineral Resource.
-- The aggregate Inferred and Indicated Mineral Resource is
distributed across three Seams (The Lower, Intermediate and Upper
Seams) and is reported as 186.7 Mt at an average grade of 1.98 per
cent V(2) O(5) (in magnetite), with an average magnetite content of
35.0 per cent (in whole rock) for 719,300 tonnes of contained
vanadium.
-- Within this, the Ore Reserve in the Probable Category is
reported as 48.4 Mt across the same three seams at an average grade
of 2.02 per cent V(2) O(5) (in magnetite), with an average
magnetite content of 28.5 per cent (in whole rock) for 156,300
tonnes of vanadium.
-- The Lower Seam is the main ore seam and the thickest, ranging
from 13.8 to 52.0 metres in thickness, comprising a Probable
Reserve of 40.2 Mt at an average grade of 2.05 per cent V(2) O(5)
(in magnetite), with an average magnetite content of 29.4 per cent
(in whole rock) for 135,600 tonnes of vanadium.
-- The 31 per cent increase in the 2019 Mineral Resource over
the 2017 estimate is primarily attributed to reporting the Mineral
Resource to a maximum depth of 150m below surface, versus 120m in
2017.
-- A relatively higher grade in the 2019 estimate resulted from
better definition of the mineralised units due to the recent
drilling, which allowed the re-scrutinising of historical data.
This, together with reporting the Mineral Resource at a cut-off
grade of 20 per cent magnetite (previously no cut-off grade was
applied), resulted in a higher-grade Mineral Resource than in 2017,
particularly for the Upper Seam that is now defined as a layer of
massive magnetite.
-- The increase in the ore tonnages for the 2019 Ore Reserve
estimate from 26.12 Mt to 48.43 Mt is due to the Mineral Resource
definition work on the Intermediate and Upper Seams, which resulted
in reclassification to the Indicated category, resulting in the
conversion of an additional 8.19 Mt of Ore Reserves within the
selected pit design. The additional 14.11 Mt of Ore Reserves from
the Lower Seam is due to the larger pit shell from a Whittle pit
optimisation based on the overall improved economics.
-- The magnetite content grade increase in the Ore Reserves from
26.8 per cent to 28.5 per cent is a direct result of the increase
in magnetite content in the Mineral Resources. The impact of this
translates to additional potential ore production and vanadium
through the processing plant.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"Following a significant amount of exploration work, including
drilling to greater depths, as well as a reinterpretation of the
geological model to include the cut-off grade of the magnetite, we
have been able to report a significant increase in Ore Reserves and
grade from the 2017 estimate.
"The conversion of additional Indicated Mineral Resources to
Probable Ore Reserves, plus the larger pit shell, means we have
added significant increased production life at Vametco. In fact,
even at the future expanded rates of production we have previously
laid out, this mine will operate for decades into the future."
Table 1: Vametco Mineral Resource at a cut-off grade of 20% magnetite, 29 March 2019 - Gross
Basis
Class Seam Name Tonnes V(2) O(5) Magnetite V(2) O(5) Tonnes V(2) Tonnes V in
grade of grade of grade in O(5) in magnetite
whole rock whole rock magnetite magnetite
----------------
(Millions) % % % (Thousands) (Thousands)
---------------- ----------- ------------ ------------ ------------ ------------ -------------
Indicated Upper 5.7 1.44 65.9 1.78 67.0 37.5
Intermediate 28.7 0.68 32.7 1.91 179.2 100.4
Lower 109.4 0.72 32.4 2.03 719.7 403.1
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Total 143.8 0.74 33.8 2.00 965.9 541.1
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Inferred Upper 10.5 1.46 63.5 1.75 116.3 65.1
Intermediate 7.0 0.67 32.1 1.92 43.4 24.3
Lower 25.4 0.74 31.3 2.00 158.5 88.8
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Total 42.9 0.90 39.3 1.92 318.2 178.2
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Indicated and
Inferred Upper 16.2 1.45 64.3 1.76 183.3 102.7
Intermediate 35.7 0.67 32.6 1.91 222.6 124.7
Lower 134.8 0.72 32.1 2.03 878.2 491.9
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Total 186.7 0.78 35.0 1.98 1,284.1 719.3
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources which are not Ore Reserves have no demonstrated economic viability.
3. Mineral Resources are inclusive of Ore Reserves (not indicated in the table).
4. Magnetite content (grade) is determined as the proportion of
magnetite concentrate recovered using Davis Tube methodology.
5. Due to the magnetite grade being a recovered grade,
differences will occur between whole rock V(2) O(5) grades
back-calculated from concentrate, versus those derived from whole
rock assays.
6. Depleted as at 29 March 2019.
7. Reported on a Gross Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.
Table 2: Vametco Mineral Resource at a cut-off grade of 20% magnetite, 29 March 2019 - Attributable
Basis
Class Seam Name Tonnes V(2) O(5) Magnetite V(2) O(5) Tonnes V(2) Tonnes V in
grade of grade of grade in O(5) in magnetite
whole rock whole rock magnetite magnetite
----------------
(Millions) % % % (Thousands) (Thousands)
---------------- ----------- ------------ ------------ ------------ ------------ -------------
Indicated Upper 4.2 1.44 65.9 1.78 49.6 27.8
Intermediate 21.2 0.68 32.7 1.91 132.6 74.3
Lower 81.0 0.72 32.4 2.03 532.6 298.3
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Total 106.4 0.74 33.8 2.00 714.8 400.4
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Inferred Upper 7.7 1.46 63.5 1.75 86.1 48.2
Intermediate 5.2 0.67 32.1 1.92 32.1 18.0
Lower 18.8 0.74 31.3 2.00 117.3 65.7
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Total 31.7 0.90 39.3 1.92 235.4 131.9
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Indicated and
Inferred Upper 12.0 1.45 64.3 1.76 135.6 76.0
Intermediate 26.4 0.67 32.6 1.91 164.7 92.3
Lower 99.7 0.72 32.1 2.03 649.8 364.0
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Total 138.1 0.78 35.0 1.98 950.2 532.3
------------------------------- ----------- ------------ ------------ ------------ ------------ -------------
Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources which are not Ore Reserves have no demonstrated economic viability.
3. Mineral Resources are inclusive of Ore Reserves (not indicated in the table).
4. Magnetite content (grade) is determined as the proportion of
magnetite concentrate recovered using Davis Tube methodology.
5. Due to the magnetite grade being a recovered grade,
differences will occur between whole rock V(2) O(5) grades
back-calculated from concentrate, versus those derived from whole
rock assays.
6. Depleted as at 29 March 2019.
7. Reported on an Attributable Basis. Bushveld Minerals
shareholding in Vametco Alloys is 74%.
Table 3: Vametco Ore Reserves, 29 March 2019 - Gross Basis
Class Seam Name Tonnes V(2) O(5) Magnetite V(2) O(5) Tonnes V(2) Tonnes V in
grade of grade of grade in O(5) in magnetite
whole rock whole rock magnetite magnetite
----------------
(Millions) % % % (Thousands) (Thousands)
---------------- ----------- ------------- ------------- -------------- ------------- --------------
Probable Upper 1.0 0.58 27.3 1.78 4.6 2.6
Intermediate 7.2 0.53 23.7 1.89 32.3 18.1
Lower 40.2 0.63 29.4 2.05 242.1 135.6
--------------------------- ----------- ------------- ------------- -------------- ------------- --------------
Total 48.4 0.62 28.5 2.02 279.1 156.3
--------------------------- ----------- ------------- ------------- -------------- ------------- --------------
Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Ore Reserve tonnes and grades reported on dry ROM (plant
feed) basis after mining modifying factors have been applied but
before beneficiation down-stream recoveries/losses have been
applied
3. Reporting was prepared on a Mineral Resource model developed by MSA
4. Ore Reserve tonnes depleted as at 29 March 2019.
5. Reported on a Gross Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.
Table 4: Vametco Ore Reserves, 29 March 2019 - Attributable Basis
Class Seam Name Tonnes V(2) O(5) Magnetite V(2) O(5) Tonnes V(2) Tonnes V in
grade of grade of grade in O(5) in magnetite
whole rock whole rock magnetite magnetite
----------------
(Millions) % % % (Thousands) (Thousands)
---------------- ----------- ------------- ------------- -------------- ------------- --------------
Probable Upper 0.7 0.58 27.3 1.78 3.4 1.9
Intermediate 5.4 0.53 23.7 1.89 23.9 13.4
Lower 29.8 0.63 29.4 2.05 179.2 100.3
--------------------------- ----------- ------------- ------------- -------------- ------------- --------------
Total 35.8 0.62 28.5 2.02 206.5 115.6
--------------------------- ----------- ------------- ------------- -------------- ------------- --------------
Notes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Ore Reserve tonnes and grades reported on dry ROM (plant
feed) basis after mining modifying factors have been applied but
before beneficiation down-stream recoveries/losses have been
applied
3. Reporting was prepared on a Mineral Resource model developed by MSA
4. Ore Reserve tonnes depleted as at 29 March 2019.
5. Reported on an Attributable Basis. Bushveld Minerals
shareholding in Vametco Alloys is 74%.
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
SP Angel Corporate Finance Nominated Adviser +44 (0) 20 3470
LLP & Broker 0470
Ewan Leggat / Richard Morrison
Jonathan Williams / Richard
Parlons
Alternative Resource Capital Joint Broker
+44 (0) 207 186
Rob Collins 9001
+44 (0) 207 186
Alex Wood 9004
+44 (0) 20 7236
BMO Capital Markets Limited Joint Broker 1010
Jeffrey Couch / Tom Rider
Michael Rechsteiner / Neil
Elliot
Tavistock Financial PR
+44 (0) 207 920
Charles Vivian / Gareth Tredway 3150
Brunswick Financial PR (South
Africa)
+27 (0) 11 502
Miyelani Shikwambana 7300
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low cost, integrated, primary vanadium
producer, with ownership of high grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent
controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a
primary vanadium mining and processing company; the Mokopane
Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owning high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage project developer and
component manufacturer. Whilst the demand for vanadium remains
largely anchored in the steel industry, Bushveld Minerals believes
there is strong potential for an imminent and significant global
vanadium demand surge from the fast-growing energy storage market,
particularly through the use and adoption of Vanadium Redox Flow
Batteries.
While the Company's focus is on vanadium operations and the
development and promotion of VRFBs, it has additional investments
in coal, power and tin.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be
accessed on the website www.bushveldminerals.com.
About Vametco
Vametco is located near Brits on the Western Limb of the
Bushveld Complex. The integrated operation comprises a vanadium ore
mine and a processing plant that produces Nitrovan(TM) , a
trademark product sold in major steel markets across the world. The
mine lies adjacent to the Brits Vanadium Project, which will in
future serve as an alternative source of near surface run of mine
(ROM) ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods
to mine a well-defined orebody. The deposit is continuous with
limited faulting and dips in a northerly direction at approximately
19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing
circuit, followed by milling and magnetic separation to produce
magnetite concentrates. The magnetite concentrates are fed into the
extraction process which includes the kiln for roasting followed by
leaching and precipitation. Thereafter the precipitated vanadium as
ammonium metavanadate is converted to modified vanadium oxide (MVO)
in rotary calciners. MVO is fed into the mixplant and finally into
the shaft furnaces to produce Nitrovan(TM) .
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and
Gas Companies", the information contained within the announcement
has been reviewed and approved by Professor Richard Viljoen.
Professor Richard Viljoen has more than 30 years' experience in the
mining industry, including 15 years as chief consulting geologist
for Gold Fields of South Africa. Notable past experience includes
the development of significant mines including Northam Platinum and
the Leeudoorn and Tarkwa gold mines, identifying and developing a
significant platinum deposit in the Bushveld Complex for Akanani
Resources as well as acting as consultant for exploration and
mining companies in Canada, Mexico, Venezuela, India and China in
the fields of base metals, gold and platinum. Professor Richard
Viljoen has extensive experience relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined under the JORC Code (2012). Professor Richard Viljoen
consents to the inclusion in this announcement of the matters based
on his information in the form and context in which it appears.
Glossary of Technical Terms
Cut-off grade The lowest grade, or quality,
of mineralised material that
qualifies as economically mineable
and available in a given deposit.
May be defined on the basis
of economic evaluation, or on
physical or chemical attributes
that define an acceptable product
specification.
Geological model Geological modelling, or Geomodelling,
is the applied science of creating
computerized representations
of portions of the Earth's crust
based on geophysical and geological
observations made on and below
the Earth surface
-----------------------------------------------------
Indicated Mineral Resources Indicated Mineral Resource or
or Indicated Resources Indicated Resource is that part
of a Mineral Resource for which
quantity, grade or quality,
densities, shape and physical
characteristics, can be estimated
with a level of confidence sufficient
to allow the appropriate application
of technical and economic parameters,
to support mine planning and
evaluation of the economic viability
of the deposit. The estimate
is based on detailed and reliable
exploration and testing information
gathered through appropriate
techniques from locations such
as outcrops, trenches, pits,
workings and drill holes that
are spaced closely enough for
geological and grade continuity
to be reasonably assumed
-----------------------------------------------------
Inferred Mineral Resources or An Inferred Mineral Resource
Inferred Resources or Inferred Resource is that
part of a Mineral Resource for
which quantity and grade (or
quality) are estimated on the
basis of limited geological
evidence and sampling. Geological
evidence is sufficient to imply
but not verify geological and
grade (or quality) continuity.
It is based on exploration,
sampling and testing information
gathered through appropriate
techniques from locations such
as outcrops, trenches, pits,
workings and drill holes.
-----------------------------------------------------
Magnetite Naturally occurring form of
iron ore with the formula Fe3O4.
-----------------------------------------------------
Mt Millions of tonnes
-----------------------------------------------------
mt or mtV Metric tonne or Metric tonne
of Vanadium
-----------------------------------------------------
Ore or Mineral Resource Ore or Mineral Reserves are
sub-divided into two categories.
The "Proved" category - the
highest level of Reserves or
the level with the most confidence
and the "Probable" category
- the lower level of confidence
of the Reserves.
Reserves are distinguished from
resources as all the technical
and economic parameters have
been applied and the estimated
grade and tonnage of the resources
should closely approximate the
actual results of mining. The
guidelines state: "Mineral Reserves
are inclusive of the diluting
material that will be mined
in conjunction with the Mineral
Reserve and delivered to the
treatment plant or equivalent
facility." The guidelines also
state that:
"The term 'Mineral Reserve'
need not necessarily signify
that extraction facilities are
in place or operative or that
all government approvals have
been received. It does signify
that there are reasonable expectations
of such approvals."
-----------------------------------------------------
Seam a bed or a distinct layer of
vein of rock in other layers
of rock
-----------------------------------------------------
Vanadium Vanadium is a chemical element
with the symbol V and atomic
number 23.
-----------------------------------------------------
Vanadium Oxide Vanadium(V) oxide is the inorganic
compound with the formula V(2)
O(5) .
-----------------------------------------------------
Pit optimisation Pit optimisation is used to
define the most profitable pit
shell for a given set of economic
parameters. The economic parameters
generally include the metal
prices, process recoveries,
and operating costs.
-----------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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