Vanadium Resources (ASX: VR8, DAX: TR3) reports significant progress on Steelpoortdrift project

Highlights

• Environmental authorisation and water use licence approval is expected by the first half of the calendar year.
• Front-end engineering design has commenced at the Steelpoortdrift Vanadium project.
• The company seeks to increase its interest in the project to 86.49% and awaits South African Reserve Bank (SARB) approval.
• VR8 has made progress towards securing strategic investment, binding offtake and project financing.
• FID is expected in 2H24 with first production likely in 1H26.

Vanadium Resources Limited (ASX: VR8, DAX: TR3) has made major advances on its South Africa-based Vanadium project (which incorporates Steelpoortdrift mine & concentrator and the Tweefontein salt roast leach sites). After completing the definitive feasibility study (DFS) in October 2022, the company is now busy progressing the development, construction, offtake and financing of the project.

The company is progressing with environmental authorisations, water use licence applications and front-end engineering design.

Data source: company update

Delivery strategy for the project

For the final investment decision and construction of the project, the company plans to establish multiple Engineering, Procurement and Construction (“EPC”) contracts. Several suppliers have been identified for the crucial pieces of equipment and plant, with many having experience in the vanadium industry.

Also, relevant engineering firms have been identified with experience in vanadium projects to create design and tender packages to ensure that VR8 has close control of the preferred engineering firm, equipment selection and flowsheet.

More

In May this year, the company executed a memorandum of understanding (MoU) with Matrix. The two parties have reaffirmed their commitment to enter into agency and offtake agreements to achieve the outcomes outlined in the MoU. To know more, read here.

The company is focused on expanding its engineering and support team with various appointments including a concentrate manager, salt roast leach manager, and infrastructure (power & water) manager.

Meanwhile, the company is investing various power and water solutions to address the requirements at its Steelpoortdrift and Tweefontein operations. VR8 has initiated environmental impact assessment for rope conveyor construction between the two operations.

Vanadium Resources is focused on achieving a final investment decision of the Steelpoortdrift project development by the second half of 2024. First production is expected in the first half of 2026.