Vanadium Resources makes giant strides at Steelpoortdrift in December quarter

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Vanadium Resources makes giant strides at Steelpoortdrift in December quarter

 Vanadium Resources makes giant strides at Steelpoortdrift in December quarter
Image source: Copyright © 2022 Kalkine Media ®

Highlights

  • Vanadium Resources progressed its flagship Steelpoortdrift Project through the ongoing definitive feasibility study during the December quarter.
  • VR8 secured an investment of AU$4.6M, at a 64% premium ($0.104 per share) through strategic placement with Raubex Pty Ltd. during the quarter.
  • The Company is advancing through the DFS study with an aim to develop one of the world’s largest and highest grade vanadium mines.
  • VR8 is developing a proprietary ESG technology for the project and has successfully registered a JV company TCM-VR for the purpose.
  • VR8 jumped 5.6% today on the ASX on the release of its quarterly activity report.

Aiming to construct one of the largest and highest grade vanadium mines in the world, Vanadium Resources Limited (ASX:VR8) has closed the December quarter on a high note. From completing a strategic placement to raise AU$4.6 million, to making major progress on the Definitive Feasibility Study (DFS) on its flagship Steelpoortdrift Project, the December quarter was an action-packed period for VR8.

The Steelpoortdrift Project, located in the prolific Bushveld Complex of South Africa, is one of the highest-grade and largest vanadium resources in the world of 662Mt @ 0.77% V2O5.

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

Location of Steelpoortdrift Project (Image source: Company update, 7 May 2021)

Investors welcomed the quarterly update of the Company, driving the stock’s share price higher. VR8 shares jumped 5.6% to close at AU$0.075 on the ASX on the day of announcement.  Given its valuations, the market participants such as sector analysts are closely tracking the company.

Related read: Is VR8 a potential Tier 1 Vanadium producer?

VR8 secured AU$4.8 million in funding and executed a Mining Services Agreement

In another major highlight of the December quarter, VR8 secured AU$4.6 million in funding through a strategic placement with Raubex Pty Ltd. Raubex is a wholly owned subsidiary of JSE listed Raubex Group Ltd, a South African infrastructure development, mining services and materials supply group.

The placement of shares was done at a price of AU$0.104 per share, which represented a 64% premium to the 30-day VWAP.

The Placement strengthened the financial position of the Company and made it fully funded through to the Final Investment Decision (FID).

A Mining Service Agreement was also executed with the mining subsidiary of Raubex- SPH Kundalila (Pty) Ltd. Under the terms of the agreement, SPH will provide mining-related services to VR8 that will include drilling, blasting, hauling, management of the stockpile and backfilling services for the duration of the life of mine (LOM).

Related read: Vanadium Resource (ASX:VR8) upbeat about its progress on DFS study

The DFS is progressing within budget and on time

After completion of the Pre-feasibility Study (PFS) in mid-2021, VR8 progressed to the next phase of studies on the project and commenced the DFS. The DFS is being carried out with an aim to produce high purity vanadium compound (>98% V2O5) from the primary Run of Mine mineralised material.

VR8 has appointed a highly qualified team with extensive experience in their respective fields to carry out the DFS.

Data source: Company update, 28 January 2022

ESG Technology development

To make the project greener and increase the overall output through commercial production of by-products, including iron, titanium, and aluminium, VR8 is developing a proprietary ESG Technology, completely independent of the Salt Roast Process, which are currently not possible with the existing conventional processing methods. The technology is being developed by TCM, which formed a joint venture with VR8 during the December quarter. The new entity has been registered as TCM-VR in the Republic of Ireland.

The innovative ESG Technology would also allow VR8 to produce battery-grade V2O5 and other high-end products.

The acquisition was made under an earn-in agreement, which allows VR8 to acquire up to a 74% interest in the ESG integrated extraction, processing, refining and manufacturing technology.

Related read: Vanadium Resources (ASX:VR8) cashes in on high-yield metallurgical test results

The intellectual property related to the technology has been transferred to the newly formed JV company. The ESG Technology development is being done completely independent of the current mine design (considered in the DFS).

Also, VR8 has appointed Resonant Nuteq, an international multidisciplinary engineering group, to carry out a PFS for the inclusion of ESG Technology in the project.

Major tasks to be carried out in the DFS are:-

Data source: Company update, 28 January 2022

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

Initial metallurgical test work returned promising results

VR8 conducted an initial metallurgical test work on the concentrates produced from the project. The results were highly encouraging. The main objective of the test work was to confirm the parameters for the development of a two-stage process for the extraction of vanadium, iron and other metals.

Major findings of the test work were:

  • An excess of 95% extraction rate of vanadium and iron could be achieved during the first stage of the process.
  • High extraction rates for Titanium and aluminium could be achieved in a second processing step, indicating selective extraction of these metals.
  • Carbon monoxide can be used as a process reductant, eliminating the requirement of solid carbon. This will also allow recycling of carbon dioxide produced in the process.
  • Carbon dioxide is converted into carbon monoxide and oxygen, which at a later stage, could be used for the production of high purity oxides.

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

VR8 is currently progressing the DFS study on the project. The Company is aiming to build the world’s largest vanadium mine with significant ESG benefits. The project has a well-connected infrastructure and lies in a Tier-1 mining jurisdiction.  

On 31 January 2021, VR8 shares are trading at AU$0.077 at 2:30 PM AEDT, with a market capitalisation of AU$35.48 million. 

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