TIDMBMN
RNS Number : 9361N
Bushveld Minerals Limited
04 February 2021
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.
04 February 2021
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Vametco Mineral Resources and Reserves u pdate
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated
primary vanadium producer and energy storage solutions provider,
with ownership of high-grade assets in South Africa, ("Bushveld"),
is pleased to provide an updated Mineral Resources and Ore Reserves
for the Vametco vanadium mine near Brits on the Western Limb of the
Bushveld Complex.
Key Highlights
-- Ore Reserves have been depleted after 12 months of mining by
approximately two per cent from previous Ore Reserve estimate as at
31(st) December 2019. As at the 31(st) December 2020, Ore Reserves
are reported at 267,200 tonnes V(2) O(5) in magnetite at a grade of
2.02 per cent V(2) O(5) in magnetite (previously 274,100 tonnes V
(2) O (5) in magnetite).
-- Combined Inferred and Indicated Mineral Resource across three
Seams (The Lower, Intermediate and Upper Seams) reported as at the
31(st) December 2020 at 184.2 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 709.8 thousand tonnes of contained
vanadium (previously 185.5 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 714.7 thousand tonnes of contained
vanadium).
-- Within this, the Ore Reserve in the Probable Category is
reported as 46.4 Mt at an average grade of 2.02 per cent V(2) O(5)
in magnetite, with an average magnetite content of 28.4 per cent in
whole rock for 149,700 tonnes of vanadium (previously 47.4Mt V (2)
O (5) in magnetite 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 38.8 Mt at an average grade of 2.05 per cent V(2) O(5)
in magnetite, with an average magnetite content of 29.3 per cent in
whole rock for 130,500 tonnes of vanadium.
-- The decrease in the 2020 Mineral Resource, by 0.68 per cent
less tonnes than the 31(st) January 2019 estimate, is attributed to
mining of the seams over the last 12 months. No Mineral Resource
Exploration was carried out over the period.
-- The decrease in the ore tonnages for the previous Ore Reserve
estimate in December 31(st) 2019 from 47.4 Mt to 46.4 Mt in
December 31(st) 2020 is due to the depletion of lower and
Intermediate seams over the 12 month period based on the pit to
plant reconciled production data from Vametco.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"I am pleased to report no significant change in our ore reserve
in the past twelve months, except for the depletion that occurs in
the ordinary course of mining the deposit. For a deposit with
decades of production ahead of it and potential for expansion, this
gives us the confidence to pursue our growth targets knowing we
have a quality and consistent resource at Vametco."
Table 1: Vametco Mineral Resource at a cut-off grade of 20% magnetite, as at 31 December 2020
- 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 66.2 37.1
Intermediate 27.9 0.67 32.8 1.91 174.8 97.9
Lower 107.9 0.72 32.3 2.03 709.4 397.4
----------------------------- ----------- ------------ ------------ ------------- -------------
Total 141.5 0.74 33.8 2.00 950.5 532.4
----------------------------- ----------- ------------ ------------ ------------- -------------
Inferred Upper 10.3 1.46 63.6 1.75 114.8 64.3
Intermediate 7.0 0.67 32.1 1.92 43.3 24.3
Lower 25.4 0.74 31.3 2.00 158.4 88.7
----------------------------- ----------- ------------ ------------ ------------- -------------
Total 42.7 0.90 39.2 1.93 316.6 177.3
----------------------------- ----------- ------------ ------------ ------------- -------------
Indicated and
Inferred Upper 16.0 1.45 64.4 1.76 181.0 101.4
Intermediate 35.0 0.67 32.7 1.91 218.1 122.2
Lower 133.3 0.72 32.1 2.03 867.9 486.1
----------------------------- ----------- ------------ ------------ ------------- -------------
Total 184.2 0.78 35.0 1.98 1,267.2 709.8
----------------------------- ----------- ------------ ------------ ------------- -------------
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 using 31 December 2020 pit survey.
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, as at 31 December 2020
- Attributable Basis
Cla ss 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 49.0 27.4
Intermediate 20.7 0.67 32.8 1.91 129.3 72.4
Lower 79.9 0.72 32.3 2.03 525.0 294.0
----------------------------- ----------- ------------ ------------ ------------- -------------
Total 104.7 0.74 33.8 2.00 703.4 394.0
----------------------------- ----------- ------------ ------------ ------------- -------------
Inferred Upper 7.6 1.46 63.6 1.75 84.9 47.5
Intermediate 5.2 0.67 32.1 1.92 32.1 17.9
Lower 18.8 0.74 31.3 2.00 117.2 65.6
----------------------------- ----------- ------------ ------------ ------------- -------------
Total 31.6 0.90 39.2 1.93 234.3 131.2
----------------------------- ----------- ------------ ------------ ------------- -------------
Indicated and
Inferred Upper 11.8 1.45 64.4 1.76 133.9 75.0
Intermediate 25.9 0.67 32.7 1.91 161.4 90.4
Lower 98.7 0.72 32.1 2.03 642.2 359.7
----------------------------- ----------- ------------ ------------ ------------- -------------
Total 136.3 0.78 35.0 1.98 937.7 525.2
----------------------------- ----------- ------------ ------------ ------------- -------------
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 using 31 December 2020 pit survey.
7. Reported on an Attributable Basis. Bushveld Minerals
shareholding in Vametco Alloys is 74%.
Table 3: Vametco Ore Reserves, 31 December 2020 - Gross Basis
Class Seam Tonnes V(2) Magnetite V(2) O(5) Tonnes Tonnes V
Name O(5) grade grade V(2) O(5) in magnetite
grade of whole in magnetite in magnetite
of whole rock
rock
--------------
(Millions) % % % (Thousands) (Thousands)
-------------- ----------- ---------- ---------- -------------- -------------- --------------
Probable Upper 0.9 0.57 26.8 1.77 4.1 2.3
Intermediate 6.8 0.52 23.4 1.88 30.0 16.8
Lower 38.8 0.63 29.3 2.05 233.1 130.5
------------------------- ----------- ---------- ---------- -------------- -------------- --------------
Total 46.4 0.62 28.4 2.02 267.2 149.7
------------------------- ----------- ---------- ---------- -------------- -------------- --------------
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 Reserves depleted as at 31 December 2020 using 31
December 2020 pit survey.
5. The Ore Reserve estimate was based on the original pit
design, modifying factors and Ore Reserves compiled in March 2019
using Surpac Open Pit software.
6. Ore Reserve estimate depleted using Datamine Studio 5DP Open
Pit software and latest topography supplied by Vametco as of 31
December 2020.
7. Reported on a Gross Basis. Bushveld Minerals shareholding in
Vametco Alloys is 74%.
Table 4: Vametco Ore Reserves, 31 December 2020 - Attributable
Basis
Class Seam Tonnes V(2) O(5) Magnetite V(2) O(5) Tonnes Tonnes V
Name grade grade grade V(2) O(5) in magnetite
of whole of whole in magnetite in magnetite
rock rock
--------------
(Millions) % % % (Thousands) (Thousands)
-------------- ----------- ---------- ---------- -------------- -------------- --------------
Probable Upper 0.6 0.57 26.8 1.77 3.0 1.7
Intermediate 5.0 0.52 23.4 1.88 22.2 12.4
Lower 28.7 0.63 29.3 2.05 172.5 96.6
------------------------- ----------- ---------- ---------- -------------- -------------- --------------
Total 34.4 0.62 28.4 2.02 197.8 110.7
------------------------- ----------- ---------- ---------- -------------- -------------- --------------
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 Reserves depleted as at 31 December 2020 using 31
December 2020 pit survey.
5. The Ore Reserve estimate was based on the original pit
design, modifying factors and Ore Reserves compiled in March 2019
using Surpac Open Pit software.
6. Ore Reserve estimate depleted using Datamine Studio 5DP Open
Pit software and latest topography supplied by Vametco as of 31
December 2020.
7. Reported on an Attributable Basis. Bushveld Minerals
shareholding in Vametco Alloys is 74%.
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.
S
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals Limited 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
Richard Morrison / Charlie
Bouverat
Abigail Wayne / Richard Parlons
+44 (0) 20 7236
BMO Capital Markets Limited Joint Broker 1010
Tom Rider
+44 (0) 20 7418
Peel Hunt Limited Joint Broker 8900
Ross Allister / Alexander
Allen
Tavistock Financial PR
Charles Vivian / Gareth Tredway
/ +44 (0) 207 920
Edward Lee 3150
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; 100 per cent of
Bushveld Vanchem, a primary vanadium processing facility with a
beneficiation plant; 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. 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.
Bushveld Energy, the Company's energy storage solutions provider,
plays a leading role in the development and promotion of the role
of vanadium in this market.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they may be
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 mostly Nitrovan , 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 mix plant and
finally into the shaft furnaces to produce Nitrovan.
About Vanchem
Vanchem is situated at Ferrobank Industrial Park in Emalahleni
Local Municipality, Mpumalanga Province in the Republic of South
Africa. Vanchem is a primary vanadium producing facility with a
beneficiation plant capable of producing various vanadium oxides,
ferrovanadium and vanadium chemicals. Vanchem uses the salt roast
beneficiation process, similar to the one used at Vametco. The
plant comprises: a core salt-roast processing plant, including 3
roasting kilns, an electric smelting ferrovanadium converter, an
alumino-thermic smelting facility, also located at Highveld, a
vanadium chemical plant; and a rail siding linking the plant with
Bushveld deposits and additional potential supply sources through
the national rail network.
About Bushveld Energy Limited
Bushveld Energy is a leading energy storage solutions provider,
focusing on the African market. Bushveld Energy recognises that the
requirement for electricity in Africa touches on both the paramount
potential for social transformation wand an immense commercial
opportunity.
Bushveld Energy is focused on developing and promoting the role
of vanadium in the growing global energy storage market through
application in vanadium redox flow batteries. Its near-term
strategy is to deploy several VRFB systems as part of its longer
term vision to become a significant electricity storage provider in
Africa, meeting the demand for utility scale energy storage in
Africa by leveraging South Africa-mined and beneficiated vanadium.
As part of its strategy of partnering with VRFB Original Equipment
Manufacturers ("OEM") for the supply of vanadium material, vanadium
electrolyte and vanadium electrolyte rental products, the Company
is invested in Invinity Energy systems plc and Enerox GmbH through
its Vanadium Investment Platform. In addition, Bushveld Energy is
developing its own hybrid mini-grid at the Vametco vanadium mine
comprising 3.5 megawatts of solar photovoltaic and 4 megawatt hours
of VRFB energy storage. In addition, Bushveld Energy is developing
a vanadium electrolyte plant in partnership with the Industrial
Development Corporation, with an initial 200 megawatt hours
capacity, in East London, South Africa.
http://www.bushveldenergy.com
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.
Indicated Mineral Resources Indicated Mineral Resource
or Indicated Resources or 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 An Inferred Mineral Resource
or 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) .
----------------------------------------------------
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