Tando Resources Limited (ASX:TNO), mineral exploration company explores and produces zinc, lead, copper and other minerals. The company develops projects in the State of Western Australia.
TNO presented the outcomes of its South Africa based SPD VanaTdium Project. Located in the town of Steelpoort, it comes under the Limpopo Jurisdiction of South Africa. At present, China, Russia and South Africa account for around 85% of the world’s vanadium production. Vanadium is used in strengthening steel through various alloys, which is then used for construction purposes.
The company provided highlights of the scoping study, based on Mineral Resources, reconditioned recently
Managing Director Bill Oliver stated that the project has strong technical and financial potential, with EBITDA per annum projected to be US$ 9.4 – 17M. Due to low-cost operation, robust margins of seventeen million per annum (avg), can be generated with a payback time as low as two years.
According to the study, the Mineral Resource at present is at 169Mt at 1.07% V?O? for the high-grade surface component of the SPD deposit. Phase 1 of the project is forecasted to generate good margins over the initial twenty-five-year project life, due to low production costs of less than US$12 / t handled along with low capital and operating costs. Using a simple beneficiation, production of a high quality +2% V?O? concentrate has been depicted by the study.
At present, the company is engaged in safeguarding binding off-take consensus with concerned parties. The proceeds of these would be used in the financing for the pre-production capital expenditure.
The total time frame of the project, which expires on 4th September 2048 consists of a single, granted mining right over Steelpoortdrift KT365, the farm. TNO exercises the right for an acquisition of 73.95% of the project through acquiring interest in Vanadium Resources (Pty) Ltd, which presently is the holder of the Mining Right. Post this, by virtue of conclusion of the Scoping Study, the company would go ahead, to a 33.45% ownership of Vanadium Resources (Pty) Ltd.
The Mineral Resource Estimate was delivered with respect to the following parameters:
- Mineralisation was hosted in a series of magnetite bearing layers.
- SPD Vanadium Resource reaches out over a strike length of 4000m and, vertically under surface, has already been drilled up till 150m.
- For the resource estimate, a total of 97 drillholes were used.
- The samples were collected and meticulously analysed at commercial laboratories.
- Quality check measures were taken care of.
- Geological domains were constructed with the help of a 0.20% cut-off grade.
On the infrastructure front, the SPD Vanadium Project is well connected with national highways, accessible to the region and is aligned along quite a few sealed roads, with ample availability of grid power. Water is in abundance, with the availability of the The De Hoop dam.
The Phase 1 financials were provided and are as under:
The capital cost estimate for Phase 1 is US$ 18.8 – 20.0Mm and the Operating Cost Estimate in US$ /t processed is US$ 11.66.
On May 3rd, 2019, the company announced that it has requested ASX to suspend its quoted securities from quotation immediately in accordance with the Listing Rule 17.2. Further announcement for the removal of the suspension would take place, latest by 10 May 2019.
Stock price Information:
As on May 6th, 2019, the stock was priced at $0.100. The company has delivered a YTD yield of 33.33%.
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