Vanadium Resources (ASX:VR8) is in fine fettle with South African asset’s upside potential


  • Vanadium Resources operates one of the world’s largest and highest grade vanadium deposits in the Bushveld Complex, South Africa.
  • The project is endowed with 662 Mt at 0.77% V2O5 and a significant amount of PGEs, chromium and magnetite.
  • Mineralisation outcrops at the surface, leading to open-pit mining with a low strip ratio and lower mining cost.

Vanadium Resources Limited (ASX:VR8) is in the limelight lately for all good reasons. The Company recently finalised its Prefeasibility Study (PFS) on its flagship Steelpoortdrift Project (SPD) in South Africa. The project lies in the infamous Bushveld Complex, which houses several massive mining projects, including the Mokopane Vanadium Project, Rhovan Vanadium Mine, Modikwa PGE mine, and Marikana PGE mine.

Related read: Stellar PFS adds lustre to Vanadium Resources’ (ASX:VR8) robust June quarter report

Project location of SPD and other major project in Bushveld Complex (Image source: Company update, 29 March 2021)

The Bushveld Complex is among the most studied geological provinces globally. The Complex hosts vanadium titanomagnetite layers at the same stratigraphic level throughout the Complex area and could be traced up to 400km.

Also, vanadium deposits found in the Complex area have higher grades compared to their global peers.

In the Bushveld Complex, SPD Project hosts one of the largest and highest-grade vanadium deposits with a global Mineral Resource of 188 [email protected]% V2O5. The mineralisation outcrops at the surface, which means open-pit mining will be favourable and dips shallowly.

Mineralisation at the surface (Image source: Company website)

Related read: Vanadium Resources (ASX:VR8) is in the spotlight as demand of metal is on the rise

The PFS report demonstrates excellent financial matrices for the project

The PFS study indicates that the mine could commence production with an initial rate of 1.6 Mtpa, which can be further increased to 3.2 Mtpa. The mining operation will involve extracting V2O5 concentrate on site. From there, it will be sent for further processing to produce high-purity flake (>98%). VR8 is planning to use conventional Roast and Leach process for processing.

VR8 have also formed a JV with TCM Research Limited to acquire and investigate proprietary technology for the extraction of vanadium and other products from the projects ore. The technology is called the ESG TCM process, which if studies prove economical, willfacilitate the production of a wide range of products from the mined material from the project including Iron, Titanium, Silicon and Aluminium, which are not currently extracted using conventional processing methods. The robust figure of PFS is without taking into account the implication of the ESG technology on the project.

The Company, moving one step ahead on the ESG front, announced the implementation of the ESG framework reporting system for the organisation. VR8 will adopt the framework developed by the World Economic Forum (WEF).

Maiden Ore Reserve

Maiden Ore Reserve estimate for the SPD Project was undertaken by Sound Mining International SA Limited. The total Ore Reserve came out to be 73.85Mt at an average grade of 0.75% V2O5, providing a total contained amount of V2O5 of 560kt. VR8 has put 31.17Mt out of 73.85Mt in the Proven category, while the rest 42.68Mt is put into the Probable category.

Related read: Eye on maiden Ore Reserve, Vanadium Resource kicks off early DFS preparations

Sound Mining International SA Limited, the consulting company,  was also involved in the Pre-Feasibility Study of the project.

Project timeline

Copyright © 2021 Kalkine Media Pty. Ltd Data source (Company update, 29 March 2021)

Related read: Vanadium Resources Ltd to acquire a proprietary ESG technology which compliments its World Class Vanadium Project

Share price

Shares of VR8 were trading at AU$0.065 at 3:11 PM AEST on 20 September 2021, with a market cap of AU$28.87 million. VR8 has given an impressive YTD return of 165.38% to its shareholders.





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