Vanadium Resources fixes gaze at constructing one of world’s largest vanadium mines

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Vanadium Resources fixes gaze at constructing one of world’s largest vanadium mines

 Vanadium Resources fixes gaze at constructing one of world’s largest vanadium mines
Image source: Copyright © 2021 Kalkine Media

Highlights

  • Vanadium Resources aims at constructing one of the largest vanadium mines in the world.
  • The Company is advancing on the project within its stated timeline and declared the Maiden Ore Reserve during the September quarter.
  • To make the project greener, VR8 signed an agreement for developing a photovoltaic solar energy supply solution for the project.
  • During the period ended on 30 September 2021, VR8 adopted a global standard for ESG reporting.
  • Post quarter VR8 completed a fundraising of AU$4.6 million with JSE listed Raubex, a leader in infrastructure development and construction materials supply.

Vanadium Resources Limited (ASX:VR8) had an action-packed September 2021 quarter with the project advancing through the Definitive Feasibility Study (DFS) stage. The Company operates the Steelpoortdrift Project in highly prolific Bushveld Complex of South Africa. Bushveld Complex is home to several major mining projects in the region. The Steelpoortdrift Project boasts a mineral resource of 662 Mt @ 0.77% V2O5.

VR8 aims at constructing one of the largest vanadium mines in the world.

Related read: Vanadium Resources (ASX:VR8) soars on securing AU$4.6M investment

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

Developments during the quarter

Maiden Ore Reserve of the project

In a major event during the reporting period, VR8 declared the maiden Ore Reserve for the project. The Pre-Feasibility Study (PFS) report, completed during the June 2021 quarter, forms the basis of the Ore Reserve.

The Steelpoortdrift Project currently holds an Ore Reserve of 73.85Mt at a grade of 0.73% V2O5. Of the total 73.85Mt, nearly 31.17Mt is in the proven category, while the rest 42.68Mt lies under the Probable category.

To know more, watch: Insights into the upcoming projects of Vanadium Resources

VR8 entered into an agreement to make the project greener

During the quarter, VR8 entered into a Joint Development Agreement (JDA) with Senergy, a subsidiary of DRA Global Ltd. to develop a photovoltaic solar energy supply solution. The agreement includes conducting a feasibility study based on power demands for the mining and processing plant.

The basis of the design is to develop a 5MW capacity solar plant. Studies for the power plant will be conducted by Senergy, with all the costs for the study to be included in the construction cost. VR8 is liable to pay a maximum internal cost of AU$93K plus a margin of 12% in case of termination of the agreement anytime prior to the commencement of the project or VR8 proceeds with another service provider.

The JDA also includes the possibility of extending power demands for the Salt Roach Plant or any other alternative processing plants on the downstream side.

Integrated ESG strategy (Image source: Company update 6 July 2021) 

Related read: Vanadium Resources (ASX:VR8) goes green with a new Joint Development agreement

VR8 adopted a global ESG reporting system

VR8 during the quarter announced that the Company had adopted the Environmental, Social and Governance (ESG) framework of the World Economic Forum (WEF). The WEF framework involves 21 core metrics and disclosures.

ESG dashboard (Image source: Company update, 23 July 2021) 

The ESG monitoring and reporting system of VR8 is progressing as per the quarterly dashboard based on the initial baseline assessment.

Related read: Vanadium Resources (ASX:VR8) boosts its ESG credentials further by adopting WEF framework

Post quarter significant event

VR8 successfully completed a fundraising of AU$4.6 million through placement. The funding will help to advance the project through the Final Investment Decision (FID) stage on the project. Raubex Pty Ltd (JSE:RBX), a subsidiary of Raubex Group Ltd, a well-known name in the South African mining landscape, will infuse the required capital into the project.

Also, VR8 put up a mining service agreement with a wholly owned subsidiary of Raubex- SPH Kundalila (Pty) ltd for providing mining-related services on the project.

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

Share price movement

On 29 October 2021, VR8 shares were trading at AU$0.080 at 1:38 PM AEDT, up 1.265% from the previous close. In the last one year, VR8 has given an impressive return of ~190% to its shareholders. The Company has a market cap of AU$36.55 million as of 29 October 2021.

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