By - Manisha
- Vanadium Resources (ASX: VR8, FRA: TR3) wrapped up the Definitive Feasibility Study on its Steelpoortdrift Vanadium Project in H1.
- The study confirmed that the project holds economics and technical viability to deliver 484,000t of vanadium pentoxide over 25 years.
- For its planned Salt Roast Leach Plant, the company picked a 135-hectare site and inked an option agreement.
- SPD’s Mineral Resources now stands at 680Mt averaging 0.70% V2O5 at a cut-off grade of 0.45% V2O5 and Measured Mineral Resources is at 145Mt averaging 0.72% V2O5.
The first half of FY23 saw Vanadium Resources Limited (ASX:VR8, FRA: TR3) moving forward with full gusto to develop its flagship Steelpoortdrift Vanadium Project (SPD) in South Africa. The SPD, VR8 says, is one of the largest and highest-grade vanadium deposits in the world.
The reported period saw major developments including encouraging Definitive Feasibility Study (DFS) outcomes, updated mineral resource and ore reserve estimates, and acquisition of a new property.
Data source: company update
Key activities towards developing Steelpoortdrift Vanadium Project
Because of the high-grade quality of the mineralisation and the low Capex requirement of US$211 million, the company believes that the project will be able to produce an annual free cashflows of US$152 million with a payback period of 27 months.
Image source: Company update
Stock price performance
VR8 shares were spotted trading at AU$0.075 midday on 29 March 2023, with an uptick of over 4% from the last close. The company shares have recorded a jump of more than 25% in the year-to-date period.