Vanadium Resources (ASX:VR8) ends busy March quarter with Steelpoortdrift DFS on track

Highlights

• Vanadium Resources is advancing the Steelpoortdrift DFS to set up a mining operation with an initial production target of 12,500tpa of V₂O₅.
• The Company increased its interest to 73.95% in the project during the March quarter.
• VR8 appointed a corporate advisor to provide services related to capital market requirements.

When it comes to large battery storage units, the world is betting on vanadium. The redox flow battery technology using vanadium as the main constituent is gaining wide acceptance globally.

Majority of vanadium in the world today is produced as a slag by the steel industry; however, vanadium as a by-product is costly to extract with respect to its mining.

Latest update: Vanadium Resources (ASX:VR8) shares soar 16% on Frankfurt exchange listing

One ASX-listed company that is committed to unlocking one of the world’s largest and highest-grade vanadium deposits for a new era is Vanadium Resources Limited (ASX:VR8). The emerging vanadium producer is actively pursuing exciting opportunities to develop the Steelpoortdrift Vanadium Project in South Africa. The project has a mineral resource of 662 Mt @ 0.77% V₂O₅.

The Company has shed light on the progress of the project in its recently released quarterly report for the period ended 31 March 2022. During the reported period, the strategic focus included the Steelpoortdrift Definitive Feasibility Study (DFS), which continues to remain on time and within budget at present.

Trial mining and bulk sampling completion

The quarter saw the completion of trial mining and bulk sampling as part of the ongoing DFS. The objective was to extract fresh mineralised material for conducting pilot plant metallurgical test works.

Related read: Vanadium Resources (ASX:VR8) shares tick higher on DFS update

Nearly 40 tonnes of mineralised material were mined, out of which 15 tonnes were classified as fresh high-grade material from the lower magnetite mineralised zone.

The bulk samples have been dispatched to a lab in Johannesburg, South Africa, for conducting pilot plant test campaigns. The test campaigns will focus on producing bulk concentrate material at >2% V₂O₅ to be used further in Salt Roast and Leach pilot plant campaigns. The test process is designed to maximise the concentrate grade and recoveries.

Bulk sample in lab (left) & sample showing highly magnetic material (right) (Image source: Company update)

Additionally, the concentrator pilot plant will establish detailed engineering design parameters for final equipment sizing and plant designs.

Related read: Vanadium Resources (ASX:VR8) advances on pilot plant test work post bulk sampling completion  

Geotechnical drilling makes headway

To establish the mechanical strength and properties of subsurface material for mine designs, VR8 undertook on-site geotechnical drilling. The visual analysis and inspection of the samples showed no major concerns about the structural integrity of the surface material.

The subsamples have been sent to a lab for further analysis and test work.

Project ownership increases to 73.95%

In one of the major events of the quarter, VR8 received approval from the South African Government to receive transfer of a 23.95% interest in the project. The development increased the Company’s ownership in the project to 73.95%.

Related read: Vanadium Resources (ASX:VR8) stake increases in the Steelpoortdrift project to 73.95%, following S11 approval

The increase in project ownership provides effective control to VR8, a key aspect enabling the Company to become one of the world’s largest and highest-grade vanadium producers. The development is expected to make the Company more attractive to potential financial partners and stakeholders.

Base case outcomes of PFS study on increased ownership (Image source: Company update)

VR8 appoints corporate advisor

VR8 has engaged Foster Stockbroking Pty Ltd to provide services in connection with the capital market requirements. The services will include securing institutional engagement from the prominent jurisdictions of Australia, Asia, and the UK.

Foster specialises in providing access to equity capital markets to emerging companies. It also provides high-quality research products and investment opportunities.

Learn more: Vanadium Resources (ASX:VR8) appoints corporate advisor to extend investor reach

Cash and financial position

VR8 reported cash and cash equivalents of AU$5.26 million at the end of the reported period. The Company incurred AU$762,923 in exploration and development activities at the Steelpoortdrift Vanadium Project.

The March quarter activities reflect that Vanadium Resources enjoyed significant progress at its Steelpoortdrift project in the world-renowned mining location of the Bushveld Complex.

VR8 shares were trading at AU$0.150 midday on 29 April 2022, up 3.448% from the last close.