Ferro-Alloy Resources Limited Balasausqandiq Feasibility Study Update (2337K)
December 20 2022 - 1:00AM
UK Regulatory
TIDMFAR
RNS Number : 2337K
Ferro-Alloy Resources Limited
20 December 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.
20 December 2022
Ferro-Alloy Resources Limited
("Ferro-Alloy" or "the Company")
Balasausqandiq Feasibility Study Update
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer
and developer of the large Balasausqandiq vanadium deposit in
Southern Kazakhstan , is pleased to announce an update on the
ongoing feasibility study ("Feasibility Study") into the large
Balasausqandiq vanadium project.
Drilling
As previously announced, the drilling programme for Phase 1 of
the Feasibility Study has been completed and an updated resource
estimate for Phase 1 will be announced during Q1 2023. Similarly,
the drilling programme for Phase 2 of the Feasibility Study has
been completed as far as possible and the Company is assessing
drilling options for a residual area of difficult topography.
Metallurgy
Metallurgical test-work continues to advance at SGS Lakefield
under the supervision of TetraTech.
Extraction of vanadium during acid leaching continues to be
above expectations with 94-97% vanadium extraction into solution.
The test-work programme will also complete subsequent phases of
vanadium, uranium, molybdenum and potassium alum extraction stages,
and solid liquid separation tests.
Carbon
Additional technical studies are advancing to understand and
validate the potential use of the carbon-rich tailings for the
production of a carbon black substitute for the making of rubber
and as a feed for the production of ferro silicon.
Feasibility Study Engineering
The open pit geotechnical drilling has commenced and will
continue into 2023. The results of the drilling and subsequent
mechanical testing programme will be used to confirm the open pit
slope design. In addition, a geophysical survey of the water supply
bore field area is underway. The results of the survey will be used
to define the fieldwork programme required to define the water
extraction bore field required to support the projects water
needs.
The open pit hydrogeology drilling is currently being contracted
per the scope defined by SRK Consulting (Kazakhstan) Limited. The
drilling is expected to commence in early 2023.
Publication Timetable
As previously announced, the Company's Feasibility Study for
Phase 1 of the project (processing 1 million tonnes of ore per
year) was expected to be published during the middle of 2023.
Following unscheduled delays during the course of 2022, in the
main as a result of capacity issues within the mineral analysis
industry, the Company now expects the Feasibility Study for Phase 1
of the project to be published during Q4 of 2023 as opposed to the
middle of 2023 as previously reported.
ENDS
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited / William Callewaert
(CFO)
Shore Capital Toby Gibbs/John More
(Joint Corporate Broker) +44 207 408 4090
Liberum Capital Limited Scott Mathieson/William
(Joint Corporate Broker) King +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 the Kyzylordinskaya 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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