- Vanadium Resources is stepping up its efforts in the run up to the Definitive Feasibility Study (DFS) on its Steelpoortsdrift Project.
- The Company has appointed a mining consultant, Sound Mining Solution (Pty,) to carry out the design and planning of bulk sampling and drilling campaigns on the project.
- Sound Mining Solution will also carry out all outstanding works related to the maiden Ore Reserve.
- The preliminary data from the PFS of the project indicates low-cost and long-life operations on the project.
With the Prefeasibility Study in full swing, Vanadium Resources Limited (ASX:VR8) has put the pedal to the metal on its Steelpoortsdrift Project and has begun initial preparations for the Definitive Feasibility Study (DFS), which is scheduled to kick off in H2 2021.
VR8 has announced the appointment of mining consultant Sound Mining Solution (Pty) to initiate early works on the DFS. Notably, Sound Mining has already provided its expert services for the geological and mining section of the PFS. Sound Mining is an independent mining consulting company established in 2004, and since then, the company is on a high growth path and spreading its wings to national as well as international clients. Its expertise in the field and knowledge of the project acquired during the PFS has led to VR8’s decision of offering it the DFS-related work.
Preliminary works on DFS
Sound Mining offers specialised services related to Geology, Geotechnical, Mining and Metallurgy. VR8 has given the responsibility of developing a bulk sampling campaign for the DFS, which will commence after the completion of the PFS. This will include design, planning, costing and management of the campaign based on the optimised mine design.
Mine design optimisation was developed during the PFS. Building on the data from the PFS, the consultant company will undertake the pilot plant test works. The samples generated (approximately 2-4 tonnes per mineralised zone) would be tested under conventional Salt Roast & Leach process and through the newly acquired ESG TCM process.
Good read: Vanadium Resources Ltd to acquire a proprietary ESG technology which compliments its World Class Vanadium Project
In order to generate data sets required for the final mine design, Sound Mining will also conduct design, planning, cost analysis and management for a detailed geotechnical drilling campaign. The work scope will include the pit angle designs also.
VR8 is planning a maiden Ore Reserve during the second half of 2021. Sound Mining will also take care of any outstanding works and will resolve them too in order to deliver the Ore Reserve within the scheduled time.
The Steelpoortdrift Project showcases indicated and inferred resource of 662 Mt @ 0.77% V2O5. The project has a potential of 81% V2O5 recovery and conservative estimates show that it can produce 2.4 Mt of saleable vanadium flake. The scoping study on the project has resulted in interesting and encouraging figures. The project could generate NPV in the range of US$359-401 million post-tax at an average market price of US$6.95/lb. Also, up to 30.7% of IRR is being forecasted from the project.
Project location map (Image source: Company update, 29 March 2021)
The shares of VR8 are trading at $0.05 today, up 2.040%. The shares of VR8 have given an impressive return of 194% in the last one year. The Company has a market cap of $20.5 million as of 26 May 2021 (11:15 AM AEST).
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