TIDMBMN
RNS Number : 4697O
Bushveld Minerals Limited
30 January 2019
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
30 January 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Bushveld Vanadium Q4 Operational Update
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated
primary vanadium producer, with ownership of high grade vanadium
assets, is pleased to provide an operational update for the three
months to end-December 2018 ("Q4 2018"), in respect of its Vanadium
platform which consists of Bushveld Vametco Limited ("Vametco"),
the Brits Vanadium Project ("Brits") and the Mokopane Project
("Mokopane").
Key Highlights
-- Vametco's sales revenue and EBITDA for the 2018 financial
year increased by 142.7% and 349.2% respectively to US$192.2
million (2017: US$79.2 million) and US$107.5 million (2017: US$23.9
million), underpinned by higher vanadium prices.
-- Ferrovanadium price averaged US$81.2/KgV in 2018, an increase
of 148.9% relative to the previous year.
Ø Vametco' s realised price is based on the prior month's
average price.
Ø Ferrovanadium price has averaged US$76/KgV, year to date(1)
.
-- Vametco's production for the 2018 financial year was 2,560
mtV (2017: 2,649 mtV) in the form of Nitrovan(TM) from magnetite
concentrate, compared to previously announced guidance range of
2,600 to 2,650 mtV. Production was impacted by an unplanned
maintenance and repairs programme in Q4 at the refractory and
cooler girth sections of the plant.
-- Vametco's production for Q4 2018 was 657 mtV in the form of
Nitrovan(TM) from magnetite concentrate (Q4 2017: 539 mtV), an
increase of approximately 22.4% relative to Q3 2018 (Q3 2018: 537
mtV), following the unprotected industrial action from the previous
quarter.
-- In October 2018 the Company, with the assistance of an
independent external consultant, initiated a detailed diagnostic
review of the Vametco plant performance. Following the completion
of the review in December 2018, the Company commenced an
operational Transformation Programme to enhance Vametco's
performance.
-- The Company has commenced the implementation of the
Transformation Programme and expects production levels in the
current year to be higher than 2018. Guidance for 2019 will be
provided in the Q1 2019 operational update once all aspects of this
programme have been scheduled.
-- The Company has completed 13 (VM001 - VM013) exploration
drillholes, as part of an initiative to increase geological
confidence and grade control of the ore mined at Vametco. The
results provide evidence of additional resources and reserves at
Vametco mine with an updated Mineral Resource Estimate due to be
published in Q1 2019.
-- The Company has received all assay results for Phase 1 of its
exploration programme at the neighbouring Brits Project, which has
to date been above/in line with management's expectations. Results
of the Phase 2 drillholes are expected to be received in Q1 2019
with a maiden Mineral Resource Estimate in Q2 2019.
1. Year to date average as at 23 January 2018.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"The strong vanadium market ensured that Vametco generated
healthy cash flows, even while its operational performance fell
below expectations. We are benefiting from the high vanadium
prices, nevertheless, we are mindful of the imperative to drive
Vametco towards operational excellence and realise its true
potential. The transformation programme we have initiated at
Vametco is designed to do just that and we are confident to see an
improved production performance during 2019.
"The deposit hosts exciting potential and our drilling
programmes at Vametco and Brits have been carefully designed to
ensure that we extract the wealth of the minerals in our portfolio
and extract them in the most cost efficient, sustainable way.
"At the Brits deposit, the recent exploration results continue
to prove the deposit as a future source of additional production
tonnages.
"As it is an election year for South Africa, we expect continued
stability and positive sentiment to allow us to focus on our
operations and make long term investment decisions for the benefit
of all our stakeholders, including employees, local communities and
shareholders."
Bushveld Vametco Limited
Production
-- Vametco sales revenue and EBITDA for the 2018 financial year
increased by 142.7% and 349.2% respectively to US$192.2 million
(2017: US$79.2 million) and US$107.5 million (2017: US$23.9
million), underpinned by higher vanadium prices.
-- Vametco's production for the 2018 financial year was 2,560
mtV (2017: 2,649 mtV) in the form of Nitrovan(TM) from magnetite
concentrate, compared to previously announced guidance range of
2,600 to 2,650 mtV. Production was impacted by an unplanned
maintenance and repairs programme in Q4 at the refractory and
cooler girth sections of the plant.
Ø Vametco' s production for Q4 2018 was 657 mtV in the form of
Nitrovan(TM) from magnetite concentrate (Q4 2017: 539 mtV), an
increase of approximately 22.4% relative to Q3 2018 (Q3 2018: 537
mtV), following the unprotected industrial action from the previous
quarter.
-- Vametco's production cost for the 2018 financial year was
ZAR260.6/KgV (US$19.7/KgV), 3% higher than guidance, as a result of
lower volumes due to an unplanned maintenance and repairs programme
in Q4.
Table 1: Operational highlights for Vametco (on a 100%
basis)(1)
Description Q4 CY18 Q4 CY18 12 mth
Unit Q4 CY18 12 mth vs vs CY18
CY18 Q3CY18 Q4 CY17 vs
12 mth
CY17
Vanadium (Nitrovan(TM)
plus FeV) produced mtV(3) 657 2,560 +22.4% +21.9% -3.4%
Vanadium sold mtV(3) 586 2,573 +0.4% -7.8% -5.4%
--------- ---------- --------- -------- --------- --------
Average MB vanadium
price(2) US$/KgV 108.0 81.2 +25.8% +176.0% +148.9%
--------- ---------- --------- -------- --------- --------
USD/ZAR average
exchange rate(4) US$:ZAR 14.3 13.2 +1.5% +4.6% -0.3%
--------- ---------- --------- -------- --------- --------
Revenue ZAR'm 858.8 2,545.4 +34.9% +178.9% 141.9%
--------- ---------- --------- -------- --------- --------
EBITDA ZAR'm 565.3 1,423.1 +67.9% +339.6% 347.8%
--------- ---------- --------- -------- --------- --------
Underlying production
costs(5) ZAR/kgV 256.3 260.6 -14.5% +5.6% +18.5%
--------- ---------- --------- -------- --------- --------
Revenue US$'m 60.2 192.2 32.9% 166.5% 142.7%
--------- ---------- --------- -------- --------- --------
EBITDA US$'m 39.6 107.5 65.4% 320.2% 349.2%
--------- ---------- --------- -------- --------- --------
Underlying production
costs(5) US$/kgV 18.0 19.7 15.7% 0.9% 18.9%
--------- ---------- --------- -------- --------- --------
1. Based on provisional, unaudited estimates. Bushveld's net
attributable interest of the above production and financials was
59.1% as at 12 September 2018 and approximately 74% from 13
September 2018 through a series of transactions.
2. The vanadium price is based on the FeV mid average price for
the period, published by Metal Bulletin. Vametco realised price is
based on the prior month's average price.
3. mtV = metric tonnes of vanadium.
4. Source: Bloomberg. The achieved USD/ZAR average exchange rate may vary.
5. Excludes depreciation, royalties, selling, general, &
administrative expenses and impact from production stoppages.
Vametco Diagnostic Review
-- Vametco's 2018 production of 2,560mtV was impacted by a total
of 37.5 days stoppages and unexpected operational challenges. An
estimated 230 mtV of production was lost due to these unforeseen
events. The total potential production for the year would therefore
have been approximately 2,800 mtV. Following the operational
challenges experienced during the ramp up of Phase 2, Bushveld
Minerals, with the assistance of an external consultant, commenced
in October 2018 a detailed diagnostic review of the Vametco plant
performance which was completed in December 2018. The primary
findings of the diagnostic assessment are summarised below.
Phase 2 of the multi-phase project
Ø Phase 2 of the multi-phase project was completed in June 2018
increasing production capacity to 3,750 mtV. During the
commissioning phase, production of the new milling circuit was
unable to ramp up to the nameplate capacity. Concurrently, there
was a reduction in the run-of-mine ore vanadium grades. These
events lead to a reduced concentrate production, lower recoveries
and plant instability, resulting in the plant not meeting its
capacity target.
Ø The diagnostic review highlighted that no additional capital
expenditure is required to achieve a sustainable production of
c.3,400 mtV, which represents 90 per cent of the name plate
capacity. In order to achieve the production target management will
be primarily focused on, among others:
-- Increasing vanadium grade in crushed ore through improved
mine scheduling which will result in an increased exposure to ore
of higher vanadium content and magnetite;
-- Increasing vanadium grade in kiln feed through improved
silica liberation;
-- Increasing kiln availability through improved engineering
practices and production throughput; and
-- Sustainably increasing the kiln feed rate.
Phase 3 of the multi-phase project
Ø The diagnostic assessment highlighted that additional targeted
investment is required for the kiln, the leach and crushing
circuits to reach Phase 3 capacity. The Company continues to
explore several improvement initiatives to further increase
production capacity to 5,000 mtV.
-- During 2019 Vametco will continue to progress environmental
approvals for Phase 3 of the multi-phased expansion project. In
addition, detailed design work and capital estimation will commence
with a view to construction commencing in 2020.
Stakeholder management
Ø The Company continues to build on the ongoing, cooperative
relationship with all stakeholders, particularly our workforce and
local communities. An employee share participation scheme will be
implemented at Vametco in Q1 2019 which will more closely align
Vametco's workforce to its operational targets.
-- Following the completion of the diagnostic review in December
2018, the Company initiated an operational Transformation Programme
to enhance Vametco's performance. The Company has commenced the
implementation of the Transformation Programme and expects
production levels in the current year to be higher than 2018.
Guidance for 2019 will be provided in the Q1 2019 operational
update once all aspects of this programme have been scheduled.
Nevertheless, the Company is confident that with the implementation
of the operational Transformation Programme Vametco will be able to
achieve its future production targets and efficiencies while being
one of the lowest-cost vanadium producers.
Other projects underway
-- Tailings facility expansion: to maintain deposition capacity
for depositing the calcines (which need to be deposited on a H:H
liner) as part of ongoing operations will be completed during Q1
2019 and deposition will commence during this period.
-- Kiln off-gas project: has been initiated to comply with
regulatory requirements and further increase kiln feed throughput.
Commissioning planned for end of Q1 2019.
Exploration at Vametco Mine
The Company has received all assay results for the boreholes
submitted for analysis at an external laboratory at the end of
December 2018. The table below summarises the results of the
analyses. The summary shows the weighted averages of V(2) O(5) % in
magnetite in the three orebodies mined at Vametco Mine. The three
orebodies are the Lower Seam (LS), Intermediate Seam (IS) and the
Upper Seam (US). These assay results provide evidence of the
presence of additional resources and reserves at Vametco Mine, and
an updated Mineral Resource Estimate based on these assay results
followed by a Mine Works Programme are expected at the end of Q1
2019.
Table 2: Assay results (as weighted averages) and intersections
for Vametco Mine Drilling
Drillhole Ore Seam Intersection Interval (m) Thickness (m) Magnetite % V(2) O(5) % (in magnetite)
VM001 US 12.00 - 13.44 1.44 60.74 1.98
---------- --------------------------- -------------- ------------ ---------------------------
LS 36.00 - 60.22 24.22 33.17 2.02
---------- --------------------------------------- -------------- ------------ ---------------------------
VM002 US 23.00 - 26.30 3.30 48.38 1.55
---------- --------------------------- -------------- ------------ ---------------------------
LS 60.00 -93.72 28.72 30.15 2.02
---------- --------------------------------------- -------------- ------------ ---------------------------
VM004 US 30.00 - 32.82 2.82 66.70 1.49
---------- --------------------------- -------------- ------------ ---------------------------
IS 53.11 - 64.00 10.89 30.63 2.02
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 76.80 - 115.62 38.82 28.03 1.93
---------- --------------------------------------- -------------- ------------ ---------------------------
VM005 US 19.43 - 21.42 1.99 90.35 1.75
---------- --------------------------- -------------- ------------ ---------------------------
IS 47.96 - 69.40 21.44 30.72 1.81
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 91.32 - 122.52 31.20 36.09 2.05
---------- --------------------------------------- -------------- ------------ ---------------------------
VM006 US 15.25 - 17.80 2.55 56.14 1.79
---------- --------------------------- -------------- ------------ ---------------------------
IS 48.28 -85.00 36.72 32.38 1.80
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 115.00 - 156.71 41.71 32.01 2.00
---------- --------------------------------------- -------------- ------------ ---------------------------
VM007 IS 20.00 - 31.70 11.70 35.58 1.56
---------- --------------------------- -------------- ------------ ---------------------------
LS 39.00 - 69.57 30.57 35.81 1.60
---------- --------------------------------------- -------------- ------------ ---------------------------
VM008 US 42.00 - 45.50 3.50 69.95 1.89
---------- --------------------------- -------------- ------------ ---------------------------
IS 72.71 - 73.71 1.00 23.09 1.75
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 92.00 - 113.90 2.,90 41.45 2.17
---------- --------------------------------------- -------------- ------------ ---------------------------
VM009 US 28.00 - 31.32 3.32 75.44 1.77
---------- --------------------------- -------------- ------------ ---------------------------
IS 68.00 - 79.00 11.00 38.44 1.94
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 94.00 - 130.43 36.43 30.88 2.08
---------- --------------------------------------- -------------- ------------ ---------------------------
VM010 US 18.40 - 19.50 1.10 16.73 1.87
---------- --------------------------- -------------- ------------ ---------------------------
IS 63.00 - 84.46 21.46 31.85 1.70
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 111.80 - 143.92 32.12 35.26 2.00
---------- --------------------------------------- -------------- ------------ ---------------------------
VM011 US 24.56 - 29.00 4.44 63.11 1.79
---------- --------------------------- -------------- ------------ ---------------------------
IS 55.57 - 58.35 2.78 33.71 2.02
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 68.18 - 97.31 29.13 34.70 2.07
---------- --------------------------------------- -------------- ------------ ---------------------------
VM012 US 42.36 - 44.26 1.90 90.19 1.81
---------- --------------------------- -------------- ------------ ---------------------------
LS 65.68 - 106.46 40.78 34.47 2.09
---------- --------------------------------------- -------------- ------------ ---------------------------
VM013* US 10.85 - 13.86 3.01 69.40 1.76
---------- --------------------------- -------------- ------------ ---------------------------
IS 36.33 - 49.38 13.05 40.26 1.97
---------- --------------------------------------- -------------- ------------ ---------------------------
LS 71.54 - 104.24 32.70 32.58 2.04
---------- --------------------------------------- -------------- ------------ ---------------------------
*Drill hole VM013 was drilled to replace VM003 which was not
assayed
1. Note that depths are intersected depths and do not represent
true thicknesses
2. LS = Lower Seam, IS = Intermediate Seam, US = Upper Seam
Brits Vanadium Project
The assay results for the second phase of exploration drilling
at the Brits Vanadium Project for boreholes BVL009 to BVL026 are
all expected to be reported before end of Q1 2019. Samples for
boreholes BVL009 to BVL016 have already been submitted to the
laboratory while sampling of the rest of the boreholes BVL017 to
BVL026 continues. The Maiden Mineral Resource Estimate for the
Brits Vanadium Project is expected in Q2 2019. Table 2 summarises
the results for the first phase of the exploration programme
reported in Q3 2018.
Table 3: Phase 1 - Assay results and intersections for Brits
Vanadium Project Drilling
Drillhole Intersection(1) Magnetite V(2) O(5) %
% (in magnetite)
4.32-12.91
BVL001(2) LS1 m 49.11 2.09
--------------- ------------------- ---------- ----------------
16.45 - 17.55
BVL002 LS8 m 40.69 1.43
--------------- ------------------- ---------- ----------------
23.00 - 24.93
LS7 m 31.55 1.62
--------------- ------------------------------- ---------- ----------------
30.00 - 31.10
LS6 m 53.88 1.57
--------------- ------------------------------- ---------- ----------------
32.00 - 35.32
LS5 m 39.04 1.61
--------------- ------------------------------- ---------- ----------------
38.00 - 39.50
LS4 m 40.58 1.40
--------------- ------------------------------- ---------- ----------------
58.35 - 59.78
LS3 m 46.05 1.62
--------------- ------------------------------- ---------- ----------------
63.30 - 65.60
LS2 m 36.04 1.86
--------------- ------------------------------- ---------- ----------------
66.00 - 98.68
LS1 m 55.50 1.68
--------------- ------------------------------- ---------- ----------------
12.60 - 14.80
BVL003 LS8 m 33.97 1.47
--------------- ------------------- ---------- ----------------
20.50 - 23.41
LS7 m 26.48 1.48
--------------- ------------------------------- ---------- ----------------
27.00 - 29.46
LS6 m 38.68 1.57
--------------- ------------------------------- ---------- ----------------
32.00 - 33.74
LS5 m 39.77 1.61
--------------- ------------------------------- ---------- ----------------
36.10 - 38.00
LS4 m 38.84 1.45
--------------- ------------------------------- ---------- ----------------
58.00 - 60.70
LS3 m 35.40 1.50
--------------- ------------------------------- ---------- ----------------
64.00 - 66.90
LS2 m 35.64 1.61
--------------- ------------------------------- ---------- ----------------
67.45 - 71.86
LS1 m 58.73 1.66
--------------- ------------------------------- ---------- ----------------
13.31 - 14.70
BVL004(2) LS1 m 80.08 1.94
--------------- ------------------- ---------- ----------------
19.46 - 21.70
BVL005 IS2 m 29.50 1.45
--------------- ------------------- ---------- ----------------
28.00 - 30.15
IS1 m 33.99 1.47
--------------- ------------------------------- ---------- ----------------
39.16 - 41.18
LS8 m 32.80 1.43
--------------- ------------------------------- ---------- ----------------
45.96 - 49.00
LS7 m 27.03 1.44
--------------- ------------------------------- ---------- ----------------
54.00 - 55.25
LS6 m 55.64 1.39
--------------- ------------------------------- ---------- ----------------
58.00 - 60.00
LS5 m 43.11 1.44
--------------- ------------------------------- ---------- ----------------
63.00 - 64.40
LS4 m 41.71 1.59
--------------- ------------------------------- ---------- ----------------
84.00 - 86.30
LS3 m 42.12 1.55
--------------- ------------------------------- ---------- ----------------
90.00 - 92.18
LS2 m 37.88 1.53
--------------- ------------------------------- ---------- ----------------
93.00 - 96.22
LS1 m 63.43 1.67
--------------- ------------------------------- ---------- ----------------
29.00 - 32.32
BVL006(2) US2 m 34.77 1.75
--------------- ------------------- ---------- ----------------
34.35 - 41.00
US1 m 38.40 1.63
--------------- ------------------------------- ---------- ----------------
98.00 - 100.35
IS2 m 29.17 1.70
--------------- ------------------------------- ---------- ----------------
106.00 - 108.5
IS1 m 30.02 1.68
--------------- ------------------------------- ---------- ----------------
117.00- 119.00
LS8 m 36.56 1.64
--------------- ------------------------------- ---------- ----------------
125.60 - 127.00
LS7 m 41.62 1.65
--------------- ------------------------------- ---------- ----------------
131.85 - 133.10
LS6 m 57.62 1.66
--------------- ------------------------------- ---------- ----------------
135.00 - 138.00
LS5 m 44.26 1.70
--------------- ------------------------------- ---------- ----------------
140.20 - 141.10
LS4 m 53.82 1.66
--------------- ------------------------------- ---------- ----------------
160.00 - 161.75
LS3 m 46.79 1.54
--------------- ------------------------------- ---------- ----------------
165.00 - 167.73
LS2 m 39.65 1.79
--------------- ------------------------------- ---------- ----------------
168.15 - 171.36
LS1 m 65.89 1.78
--------------- ------------------------------- ---------- ----------------
50.00 - 54.44
BVL007 US1 m 20.03 1.46
--------------- ------------------- ---------- ----------------
59.00 - 61.00
IS2 m 28.48 1.52
--------------- ------------------------------- ---------- ----------------
65.00 - 67.00
IS1 m 28.60 1.49
--------------- ------------------------------- ---------- ----------------
71.92 - 74.60
LS8 m 34.52 1.42
--------------- ------------------------------- ---------- ----------------
83.00 - 84.84
LS7 m 42.73 1.39
--------------- ------------------------------- ---------- ----------------
97.00 - 98.00
LS6 m 66.30 1.40
--------------- ------------------------------- ---------- ----------------
99.20 - 102.30
LS5 m 40.48 1.49
--------------- ------------------------------- ---------- ----------------
105.00 - 106.35
LS4 m 53.78 1.40
--------------- ------------------------------- ---------- ----------------
126.00 - 126.82
LS3 m 73.56 1.34
--------------- ------------------------------- ---------- ----------------
126.82 - 127.50
LS2 m 80.08 1.31
--------------- ------------------------------- ---------- ----------------
130.00 - 136.50
LS1 m 52.26 1.61
--------------- ------------------------------- ---------- ----------------
New Seam 43.00 - 75.00
BVL008 (3) m 29.22 1.31
--------------- ------------------- ---------- ----------------
107.00 - 108.90
New Seam(3) m 32.88 1.36
--------------- ------------------------------- ---------- ----------------
110.40 - 112.22
US2 m 55.57 1.41
--------------- ------------------------------- ---------- ----------------
128.65 - 129.34
US1 m 50.59 1.37
--------------- ------------------------------- ---------- ----------------
131.70 - 132.20
IS2 m 39.65 1.45
--------------- ------------------------------- ---------- ----------------
133.00 - 138.58
IS1 m 41.29 1.38
--------------- ------------------------------- ---------- ----------------
1. Note that depths are intersected depths and do not represent true thicknesses
2. BVL001, BVL004 and BVL006 have been previously reported.
3. New Seam overlying Upper Seam (US): consistency to be verified with additional boreholes
LS = Lower Seam, IS = Intermediate Seam, US = Upper
The sample analysis results continue to reaffirm the consistent
nature in grade and thickness of the Lower Seam (LS), Intermediate
Seam (IS) and Upper Seam (US) Layers at the Brits Vanadium Project.
Although the grade of the LS is marginally lower than that mined at
Vametco, it still represents world-class vanadium grades. These
assay results provide evidence of continuity of ore grades and
thicknesses similar to the adjacent operating Bushveld Vametco
Alloys mine and confirm the potential for an eastward extension of
the current orebody being mined at Vametco.
Mokopane Vanadium Project
The Mokopane Vanadium Project is a key part of Bushveld's
vanadium strategy and the intention remains to secure the mining
right and develop the greenfield project into a vanadium mine and
processing plant. The Company continues to explore means to supply
ore from the project to plants in China and / or elsewhere in the
world.
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
SP Angel Corporate Finance
LLP Nominated Adviser & Broker +44 (0) 20 3470 0470
Ewan Leggat / Richard Morrison
Jonathan Williams / Richard
Parlons
Alternative Resource Capital Joint Broker
Rob Collins +44 (0) 207 186 9001
Alex Wood +44 (0) 207 186 9004
BMO Capital Markets Limited Joint Broker +44 (0) 20 7236 1010
Jeffrey Couch / Tom Rider
Michael Rechsteiner / Neil
Elliot
Tavistock Financial PR
Charles Vivian / Gareth Tredway +44 (0) 207 920 3150
Lifa Communications Financial PR (South Africa)
Gabriella von Ille +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low cost, integrated, primary vanadium
producer, with ownership of high grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent
controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a
primary vanadium mining and processing company; the Mokopane
Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owning high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage project developer and
component manufacturer. Whilst the demand for vanadium remains
largely anchored in the steel industry, Bushveld Minerals believes
there is strong potential for an imminent and significant global
vanadium demand surge from the fast-growing energy storage market,
particularly through the use and adoption of Vanadium Redox Flow
Batteries.
While the Company's focus is on vanadium operations and the
development and promotion of VRFBs, it has additional investments
in coal, power and tin.
The coal platform comprises the wholly-owned Imaloto Coal
Project, which is being developed as one of Madagascar's leading
independent power producers. The Company's tin interests are held
through its shareholding in AIM listed AfriTin Mining Limited.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be
accessed on the website www.bushveldminerals.com.
About Vametco
Vametco is located near Brits on the Western Limb of the
Bushveld Complex. The integrated operation comprises a vanadium ore
mine and a processing plant that produces Nitrovan(TM) , a
trademark product sold in major steel markets across the world. The
mine lies adjacent to the Brits Vanadium Project, which will in
future serve as an alternative source of near surface run of mine
(ROM) ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods
to mine a well-defined orebody. The deposit is continuous with
limited faulting and dips in a northerly direction at approximately
19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing
circuit, followed by milling and magnetic separation to produce
magnetite concentrates. The magnetite concentrates are fed into the
extraction process which includes the kiln for roasting followed by
leaching and precipitation. Thereafter the precipitated vanadium as
ammonium metavanadate is converted to modified vanadium oxide (MVO)
in rotary calciners. MVO is fed into the mixplant and finally into
the shaft furnaces to produce Nitrovan(R) .
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and
Gas Companies", the information contained within the announcement
has been reviewed and approved by Dr Luke Longridge, consulting
geologist. Dr Longridge has a PhD in Geology (2012) and over 6
years' experience working on vanadiferous magnetite deposits in the
Bushveld Complex. He is a member of the Geological Society of South
Africa and is a registered Professional Natural Scientist (Pr
Sci.Nat.) in South Africa. Dr Longridge has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined under the JORC Code
(2012). Dr Longridge consents to the inclusion in this announcement
of the matters based on his information in the form and context in
which it appears.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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