Vanadium Resource Limited (ASX:VR8) is a junior mining company engaged in exploration and development of world’s largest vanadium deposit. The Steelpoortdrift Vanadium Project is a tier-one deposit located in Bushveld Complex in South Africa. The Bushveld Complex carries a reputation of having some of the richest vanadium deposits in the world. VR8 has right to acquire 74% interest in the project that lies in the close vicinity of key infratrructures.
Steelpoortdrift deposit is estimated to hold JORC compliant Mineral Resource of 662 million tonnes (Mt) at 0.77 V2O5. The mineral resource includes 244 Mt of magnetite at 2.14% V2O5 for 5,214,000 tonnes of V2O5. The contained mineral estimate is based on an average 36.85% in-situ magnetite content using 0.45% V2O5 cut-off grade. Based on the current Mineral Resource Estimate, 2.4 Mt of saleable vanadium flake could be produced from the project. The vanadium flake estimates are based on 81% average recovery of V2O5 to produce greater than 98% V2O5. Flake product.
The scoping study and PFS study on the project have revealed data that indicates feasibility of the project with strong economics. Vanadium is an important raw material for preparing light weight and strong steels and other alloys. The demand of high strength steel with relatively low weight is soaring especially in aircraft manufacturing steel and construction businesses. The mine production is on downward slope since 2018 and gap between demand and supply will impact the prices. In absence of major vanadium project, Steelpoortdrift Project will provide a better option of high-grade and long-life mine production.
Vanadium Resources holds 50% interest on the project with a possibility of additional 23.95% interest after the approval of the South African Department of Mineral Resources. The Company has vastly experienced management team with Directors from prominent South African mining industry. The project is well financed and the Company is moving aggressively on development and production phase.
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