Tando Resources Limited (ASX:TNO) came up with its recent project updates and results as on October-25, 2018 from its SPD Vanadium project in South Africa. Tando has completed phase one drilling program. The program targeted the SPD deposit, currently with a foreign resource of 513 million tonnes at a grade of 0.78% V205 defined under SAMRE code.
The main aim of Phase 1 drilling was to calculate the JORC complaint mineral resource. As announced on October 18, phase 1 drilling operations was fully completed, and all assays are expected to be reported in the next month.
Phase 2 drilling program is under process with two rigs under operation. The main target for phase 2 is the upgradation of JORC resources with 58 holes as scheduled and planned. Drilling process is also under process to test the feasibility of the high-grade vanadium pipes at SPD which will complement the Direct shipping ore operations which refer to minerals and require a simple process of crushing before they are exported. The costing to low levels has been investigated by the company. Samples which start from the surface have already been taken and the results were impressive. The samples returned extremely high grades of vanadium. Drill testing to these targeted zones has started.
The price for >98% Vanadium Pentoxide, V2O5 has increased from US$3.50/lb from the start of 2017 to approximately US$10/lb at the start of 2018 to the current prices hovering around US$30/lb. The vanadium price saw the sharp rise this year, with the prices touching the levels of $US20 per pound in the month of September. The prices have moved up to the higher zone of $US 30 per pound recording an increment of 300% in a span of year.
With phase 1 drilling operation fully completed and phase 2 drilling program in line and underway as scheduled, coming months will have strong flow of news and results with updates on project unlocking the actual value of this outstanding asset.
Tando posted latest drilling results from the recently completed phase –one drilling program recording high grades of up to 1.72% Vanadium pentoxide (V205) which was better than the highest initial grades of up to 1.61% as reported during earlier part of October. Historical drilling at SPD delivered magnetic concentrated grades above 2.2% V205.
Key points from SPD project:
- 34m at 1.03% V2O5 from 22m (VDD001)
- 24m at 0.73% V2O5 from surface (VRC002) incl. 12m at 1.00% V2O5 from 12m incl. 2m at 1.72% V2O5
- 8m at 1.10% V2O5 from 46m incl. 2m at 1.56% V2O5 (VRC005) (within a wider interval of 37m at 0.65% V2O5 from 47m)
- 9m at 1.04% V2O5 from 49m (VRC003) (within a wider interval of 35m at 0.65% V2O5 from 23m)
- 16m at 0.82% V2O5 from 10m (VRC007) incl. 2m at 1.54% V2O5
- Maiden JORC resources expected to be published next month
Tando is well advanced in its strategy to deliver a JORC compliant resource with three rigs operation. Tando Resources traded at the price levels of $0.105, down 4.5% on October 25, 2018.
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