TIDMBMN
RNS Number : 2133H
Bushveld Minerals Limited
04 April 2022
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.
4 April 2022
Bushveld Minerals Limited
("Bushveld", the "Company" or the "Group")
Vametco Mineral Resources and Reserves Annual Update
Bushveld Minerals Limited (AIM: BMN), the AIM-listed, integrated
primary vanadium producer which owns high-grade vanadium assets in
South Africa, 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. The resources and reserve
estimation was carried out by MSA Group Inc in accordance with the
terminology and definitions given in the JORC Code (2012).
Key Highlights
-- The Ore Reserve as at 31 December 2021 is 262,000 tonnes V(2)
O(5) in magnetite at a grade of 2.02 per cent V(2) O(5) (in
magnetite) (267,200 tonnes as at 31 December 2020), following
mining depletion during the 12 month period.
-- The combined Inferred and Indicated Mineral Resource
comprises three Seams - The Lower, Intermediate and Upper Seams -
and is reported at 182.7 Mt at an average grade of 1.98 per cent
V(2) O(5) (in magnetite) as at 31 December 2021, with an average
magnetite content of 35.0 per cent (in whole rock) for 703.9
thousand tonnes of contained vanadium (709.8 thousand tonnes as at
31 December 2020).
-- Within this, the Ore Reserve in the Probable Category
comprise the same three Seams and is reported as 45.3 Mt at an
average grade of 2.02 per cent V(2) O(5) (in magnetite), with an
average magnetite content of 28.6 per cent (in whole rock) for
146,900 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 38.4 Mt at an average grade of 2.05 per cent V(2) O(5)
(in magnetite), with an average magnetite content of 29.2 per cent
(in whole rock) for 128,900 tonnes of vanadium.
-- The decrease in the total 2021 Mineral Resource, by 0.81 per
cent less tonnes than the 31 December 2020 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 total 2021 Ore Reserves from 46.4 Mt to
45.3 Mt as at 31 December 2021 is due to the depletion of all of
the seams over the 12 month period.
-- An adjustment was made to the modifying factors to reflect
more accurate Ore Reserve grades for the individual seams. The Ore
Reserve modifying factors (mining loss and dilution) were adjusted
based on pit to plant reconciliation production data supplied by
Bushveld Vametco Alloys (Pty). Ltd. This resulted in a significant
increase in the Upper Seam magnetite grade in line with actual
performance from 26.8 per cent in 2020 to 49.4 per cent in
2021.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"It is pleasing to see this orebody continue to deliver
consistently , as per the reserve s and resources estimates it is
based upon. This gives us the confidence to pursue further growth
in the years ahead, knowing that we have decades of mine life in
front of us. It is updates like this that remind us what a unique
and world-class asset we possess and that we must ensure it gets
developed to its full potential over time."
Table 1: Vametco Mineral Resource at a cut-off grade of 20% magnetite, as at 31 December 2021
- 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 5.6 1.44 65.8 1.78 65.9 36.9
-------------- ----------- ------------ ------------ ------------- ------------- ---------------
Intermediate 27.6 0.67 32.9 1.91 173.3 97.1
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Lower 106.8 0.72 32.3 2.03 702.3 393.3
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Total 140.1 0.74 33.8 2.00 941.5 527.2
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Inferred Upper 10.2 1.46 63.6 1.75 113.7 63.7
-------------- ----------- ------------ ------------ ------------- ------------- ---------------
Intermediate 7.0 0.67 32.1 1.92 43.4 24.3
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Lower 25.3 0.74 31.3 2.00 158.4 88.7
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Total 42.6 0.90 39.1 1.93 315.6 176.7
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Indicated and
Inferred Upper 15.8 1.45 64.4 1.76 179.6 100.6
-------------- ----------- ------------ ------------ ------------- ------------- ---------------
Intermediate 34.7 0.67 32.7 1.91 216.7 121.4
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Lower 132.2 0.72 32.1 2.03 860.6 482.0
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Total 182.7 0.78 35.0 1.98 1,257.0 703.9
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
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 2021 pit survey.
7. Reported on a Gross Basis. Bushveld Minerals shareholding in
Bushveld Vametco Alloys is 74%.
Table 2: Vametco Mineral Resource at a cut-off grade of 20% magnetite, as at 31 December 2021
- 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 65.8 1.78 48.8 27.3
-------------- ----------- ------------ ------------ ------------- ------------- ---------------
Intermediate 20.5 0.67 32.9 1.91 128.3 71.8
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Lower 79.0 0.72 32.3 2.03 519.7 291.0
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Total 103.7 0.74 33.8 2.00 696.7 390.2
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Inferred Upper 7.6 1.46 63.6 1.75 84.2 47.1
-------------- ----------- ------------ ------------ ------------- ------------- ---------------
Intermediate 5.2 0.67 32.1 1.92 32.1 18.0
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Lower 18.8 0.74 31.3 2.00 117.2 65.7
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Total 31.5 0.90 39.2 1.93 233.5 130.8
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Indicated and
Inferred Upper 11.7 1.45 64.4 1.76 132.9 74.4
-------------- ----------- ------------ ------------ ------------- ------------- ---------------
Intermediate 25.7 0.67 32.7 1.91 160.4 89.8
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Lower 97.8 0.72 32.1 2.03 636.9 356.6
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
Total 135.2 0.78 35.0 1.98 930.2 520.9
----------------------------- ----------- ------------ ------------ ------------- ------------- ---------------
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 2021 pit survey.
7. Reported on an Attributable Basis. Bushveld Minerals
shareholding in Bushveld Vametco Alloys is 74%.
Table 3: Vametco Ore Reserves, 31 December 2021 - Gross
Basis
Class Seam Tonnes V(2) Magnetite V(2) O(5) Tonnes Tonnes
Name O(5) grade grade V(2) O(5) V in magnetite
grade of whole in magnetite in magnetite
of whole rock
rock
--------------
(Millions) % % % (Thousands) (Thousands)
-------------- ----------- ---------- ---------- -------------- -------------- ----------------
Probable Upper 0.5 1.05 49.4 1.77 4.7 2.7
Intermediate 6.3 0.51 23.4 1.88 27.5 15.4
Lower 38.4 0.63 29.2 2.05 230.1 128.9
------------------------- ----------- ---------- ---------- -------------- -------------- ----------------
Total 45.3 0.62 28.6 2.02 262.4 146.9
------------------------- ----------- ---------- ---------- -------------- -------------- ----------------
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 run of mine
(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 2021 using 31 December 2021 pit survey.
5. The Ore Reserve estimate was based on the original pit design completed in March 2019
6. Modifying factors adjusted by seam from previous previous 31
December 2020 Ore Reserve estimate based on analysis of pit to
plant production information
7. Ore Reserve estimate depleted using Datamine Studio 5DP Open
Pit software and latest topography supplied by Vametco as of 31
December 2021.
8. Reported on a Gross Basis. Bushveld Minerals shareholding in
Bushveld Vametco Alloys is 74%.
Table 4: Vametco Ore Reserves, 31 December 2021 - Attributable
Basis
Class Seam Tonnes V(2) O(5) Magnetite V(2) O(5) Tonnes Tonnes
Name grade grade grade V(2) O(5) V in magnetite
of whole of whole in magnetite in magnetite
rock rock
--------------
(Millions) % % % (Thousands) (Thousands)
-------------- ----------- ---------- ---------- -------------- -------------- ----------------
Probable Upper 0.4 1.05 49.4 1.8 3.5 2.0
Intermediate 4.6 0.51 23.4 1.9 20.4 11.4
Lower 28.5 0.63 29.2 2.1 170.3 95.4
------------------------- ----------- ---------- ---------- -------------- -------------- ----------------
Total 33.5 0.62 28.6 2.02 194.2 108.7
------------------------- ----------- ---------- ---------- -------------- -------------- ----------------
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 2021 using 31 December 2021 pit survey.
5. The Ore Reserve estimate was based on the original pit design completed in March 2019
6. Modifying factors adjusted by seam from previous previous 31
December 2020 Ore Reserve estimate based on analysis of pit to
plant production information
7. Ore Reserve estimate depleted using Datamine Studio 5DP Open
Pit software and latest topography supplied by Vametco as of 31
December 2021.
8. Reported on a Gross Basis. Bushveld Minerals shareholding in
Bushveld 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
Andrew Mari, Investor Relations
Nominated Adviser +44 (0) 20 3470
SP Angel Corporate Finance LLP & Broker 0470
Richard Morrison / Charlie Bouverat
Grant Baker / Richard Parlons
+44 (0) 207 920
Tavistock Financial PR 3150
Gareth Tredway / Tara Vivian-Neal/
Adam Baynes
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, vertically integrated primary
vanadium producer. It is one of only three operating primary
vanadium producers, owning 2 of the world's 4 operating primary
vanadium processing facilities. In 2021, the Company produced 3,592
mtV, representing approximately three per cent of the global
vanadium market. With a diversified vanadium product portfolio
serving the needs of the steel, energy and chemical sectors, the
Company participates in the entire vanadium value chain through its
two main pillars: Bushveld Vanadium, which mines and processes
vanadium ore; and Bushveld Energy, an energy storage solutions
provider. Bushveld Vanadium is targeting to materially grow its
vanadium production and achieve an annualised steady state
production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a by
the end of 2022, from projects currently being implemented. Beyond
that, pre-feasibility studies are in progress to determine the
optimal path to increase production even further to a steady state
production run rate of between 6,400 mtVp.a. and 6,800 mtVp.a. in
the medium-term and to a steady state production run rate of 8,400
mtVp.a in the long term.
Bushveld Energy is focused on developing and promoting the role
of vanadium in the growing global energy storage market through the
advancement of vanadium-based energy storage systems, specifically
Vanadium Redox Flow Batteries ("VRFBs").
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 and 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 ("VRFB"). 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. Bushveld Energy's business model embraces a number of
activities along the VRFB value chain, including electrolyte
manufacturing, investment in VRFB manufacturing, battery deployment
and project development.
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 Indicated Mineral Resource or Indicated Resource
Resources or Indicated is that part of a Mineral Resource for which
Resources 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 An Inferred Mineral Resource or Inferred Resource
Resources or Inferred is that part of a Mineral Resource for which
Resources 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.
------------------------------------------------------
JORC Code The Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves
(the "JORC Code"), a professional code of
practice that sets minimum standards for Public
Reporting of minerals Exploration Results,
Mineral Resources and Ore Reserves.
------------------------------------------------------
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 Reserves 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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