Ferro-Alloy Resources Limited Operations Update (4172D)
March 02 2022 - 8:10AM
UK Regulatory
TIDMFAR
RNS Number : 4172D
Ferro-Alloy Resources Limited
02 March 2022
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act 2018.
2 March 2022
Ferro-Alloy Resources Limited ('FAR' or the 'Company' or the
'Group')
Operations Update
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer
and developer of the large Balasausqandiq vanadium deposit in
Southern Kazakhstan, is today providing an update on
operations.
The Board of FAR is deeply shocked by the recent invasion of
Ukraine and is deeply concerned about the tragic consequences
unfolding there. Whilst the situation in Ukraine remains complex
and changeable, the Company's operations in Kazakhstan are
currently unaffected with raw materials and supplies being
delivered to site as normal.
Although the Company's operating company in Kazakhstan has
commercial relationships with some companies in Russia to procure
certain materials, there are alternative suppliers for all these
materials in Kazakhstan and other countries.
While exchange rates are volatile currently, the immediate
impacts of the fall in the value of the Russian Rouble by around
30%, and the fall in the value of the Kazakhstan Tenge by around
15%, are to significantly reduce the Group's costs given most of
them are denominated in these two currencies.
Shareholders will be updated should the situation materially
change.
The Company confirms that the on-going work programmes relating
to the preparation of the Bankable Feasibility Study are
progressing as set out in the announcement of 29 November 2021 and
the Company looks forward to providing a detailed update in
relation to this in due course.
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited
Shore Capital Toby Gibbs/John More +44 207 408 4090
(J oint Corporate Broker)
Liberum Capital Limited Scott Mathieson/Lydia
(Joint Corporate Broker) Zychowska +44 20 3100 2000
St Brides Partners
Limited
(Financial PR & IR Catherine Leftley/Ana
Adviser) Ribeiro +44 207 236 1177
About Ferro Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq
deposit in Kyzylordinskoye Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq vanadium project (the
"Project"); and
b) an existing vanadium concentrate processing operation (the
"Existing Operation")
Balasausqandiq is a very large deposit, with vanadium as the
principal product together with several by-products. Owing to the
nature of the ore, the capital and operating costs of development
are very much lower than for other vanadium projects.
A reserve on the JORC 2012 basis has been estimated only for the
first ore-body (of five) which amounts to 23 million tonnes, not
including the small amounts of near-surface oxidised material which
is in the Inferred resource category. In the system of reserve
estimation used in Kazakhstan the reserves are estimated to be over
70m tonnes in ore-bodies 1 to 5 but this does not include the full
depth of ore-bodies 2 to 5.
There is an existing concentrate processing operation at the
site of the Balasausqandiq deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then adapted to treat concentrates and expanded. Further
expansion is being undertaken which is expected to result in
annualised production capacity of around 1,500 tonnes of contained
vanadium pentoxide plus significant by-product molybdenum.
The strategy of the Company is to develop both the Project and
the Existing Operation in parallel. Although they are located on
the same site and use some of the same infrastructure, they are
separate operations.
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END
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