SPD Vanadium Project

SPD Vanadium Project

Location: South Africa

The SPD Vanadium Project is a large, high grade magnetite hosted vanadium deposit with numerous RC and diamond drilling results > 1% V2O5 including:

  • 14m at 1.08% V2O5 + 7.07% TiO2 from 9m (SFR013)
  • 26.9m at 0.80% V2O5 from 43.1m & 12.2m at 0.90% V2O5 from 127.2m (SFDD001)
  • 20m at 0.96% V2O5 + 8.35% TiO2 from 11m (SFR011)
  • 17m at 0.92% V2O5 + 7.29% TiO2 from 13m (SFR012)
  • 13m at 1.13% V2O5 + 7.43% TiO2 from 10m (SFR017)
  • 44m at 0.66% V2O5 TiO2 + 4.24% TiO2 from 35m (SFR008),
  • 15m at 0.92% V2O5 + 6.44% TiO2 from 8m (SFR018)
  • 34m at 0.65% V2O5 + 4.58% TiO2 from 23m (SFR009)
  • 9m at 1.34% V2O5 + 10.5% TiO2 from 9m (SFR019)

Drill samples were passed through a Davis Tube to obtain a magnetic concentrate. Vanadium and titanium content in the concentrate is very consistent averaging ca 2% V2O5 and 13% TiO2 . (refer Figure 1, ASX Announcement of 22March for details of all drilling) No further metallurgy testwork has been done and the Company plans to complete a testwork programme to determine whether hydrometallurgical processes can extract high purity vanadium and titanium products, which are sought after for numerous uses including vanadium flow batteries, where demand is forecast to increase.

Based on drilling data, a resource of 513 million tonnes was delineated for the SPD Project by GEMECS Pty Ltd. The resource for the SPD Project as shown in Table 1 is estimated in accordance with the SAMREC Code (2007) and is therefore a “qualifying foreign resource estimate” as defined in the ASX Listing Rules (further detail below and in the ASX Announcement of 22 March). The resource was classed as inferred under the SAMREC Code.

Table 1. SPD Project resource summary (classed as Inferred under the SAMREC Code).

Reef Avge Thickness(m) Tonnes (Mt) Whole Rock V2O5% Mt% Magnetite Tonnes V2O5% in Magnetite
Upper Layer 24 184.2 0.73 42.4 78.1 1.99
Lower Layer 22 329.1 0.81 41.6 136.0 2.20
Averages & Totals 23 513.3 0.78 41.9 215.0 2.09

Table 1 Notes: While this foreign resource is not reported in compliance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), it is the Company’s opinion (and the opinion of the Competent Person for this document), that the data quality and validation criteria, as well as the resource methodology and check procedures, are reliable and consistent with criteria as defined by the JORC Code. All tabulated data has been rounded to one decimal place for tonnage and two decimal places for grades.

The resource for the SPD Project as shown in Table 1 is estimated in accordance with the SAMREC Code (2007) and is therefore a “qualifying foreign resource estimate” as defined in the ASX Listing Rules.

Bill Oliver, Managing Director of Tando, is acting as the Competent Person for the Mineral Resource and has reviewed reports and data compiled by GEMECS Pty Ltd, independent geological consultants. GEMECS implemented the 2010 drill programme for Vanadium Resources (Pty) Ltd and the estimation of the resource presented here, including supervision of all drilling and sampling. GEMECS has confirmed that there are no material changes to the resource or underlying data since it was estimated in June 2010, and has confirmed that the information presented in this announcement is consistent with the data it reported to Vanadium Resources (Pty) Ltd.

The Competent Person has not yet completed sufficient review on the qualifying foreign resource estimate to classify it in accordance with the JORC Code at this time and consequently it is uncertain that, following evaluation and/or further exploration work that the qualifying foreign resource estimate will be able to be reported as a Mineral Resource in accordance with the JORC Code.

Further information regarding the qualifying foreign resource is presented in Appendix 2 below utilising the template prescribed by the JORC Code (2012). The Company plans to carry out further assessment and due diligence on the Mineral Resource, and then to implement a drilling programme to verify the Mineral Resource and, provided results are consistent with previous drilling, aim to increase the confidence in the Mineral Resource.

Figure 1. Plan showing drilling and geology at the SPD Vanadium Project.

The SPD Project is located in a similar geological setting to the mining operations of Rhovan (Glencore), Vametco (Bushveld Minerals) and Mapochs (International Resources Ltd) in the Gauteng region of South Africa (Figure 2). Both the Rhovan and Vametco processing plants include refining to generate products used in the global steel making industry and aim to develop downstream processing to produce materials used in the battery market. The SPD Project is located only 30km from the currently dormant Mapochs mine which has a processing plant and railway infrastructure.

Vanadium mineralisation at the SPD Project is located close to the contact between the Upper Zone and Main Zone of the Bushveld Igneous Complex and adjacent to the Steelpoort Fault (Figure 1). Mineralisation is hosted in two layers, the Upper Magnetite Layer and Lower Magnetite Layer, which dip shallowly (10-12deg) to the west.

Figure 2. Location of the SPD Project and other vanadium deposits in the Bushveld Igneous Complex.