Ironveld PLC Company Update (1430G)
February 28 2018 - 1:00AM
UK Regulatory
TIDMIRON
RNS Number : 1430G
Ironveld PLC
28 February 2018
28 February 2018
Ironveld Plc
("Ironveld" or the "Company")
Company Update
Ironveld plc, the oner of a Vanadium, High Purity Iron ("HPI")
and Titanium project ("the Project") located on the Northern Limb
of the Bushveld Complex in Limpopo Province, South Africa is
pleased to provide the following update.
Following a successful statutory inspection of the Project Area
by the Department of Water Affairs, the Company is pleased to
announce that its water use licence application is proceeding
satisfactorily with resolution expected early in Q2 2018. The water
use licence represents the only outstanding licence required before
the Company can commence mining operations. The Company is now in a
position to timeously begin the site establishment and civil
engineering works in preparation for the commencement of mining
activities.
Vanadium and HPI as a core focus
Together with HPI, Vanadium is a core focus of production from
the Project. The current resource contains 27 million tons of HPI
and 1.4 billion pounds of Vanadium (V(2) O(5) ) in situ. Current
global annual demand of Vanadium is in excess of 300 million pounds
(V(2) O(5) ). The fundamentals behind vanadium pricing have been
highly supportive over the last 12 months. Once in production the
Company envisages that the 7.5 MW smelting facility will be able to
generate 190.5 tons of vanadium in slag grading 36% V and 21,000
tons of HPI powder per annum. The third product is Titanium in slag
with anticipated production of 4,134.5 tons grading 65% TiO(2)
annually.
The Project ore body is near surface enabling simple, open cast
mining. The current resource does not include mineralisation on the
Luge Farm prospecting right which is near to the current JORC
resource and which is yet to be defined and is believed to have the
same geology.
Acquisition of smelting business
The Company is presently focused on concluding the financing for
the acquisition of the 7.5 MW smelting facility and associated
independent power plant in Middelburg, South Africa from Siyanda
Inkwali Smelting Services (Pty) Ltd. The acquisition represents a
strategically important focus for the Company, enabling for the
early production of Vanadium, HPI and Titanium and providing the
company with a readymade smelter that is expected to deliver highly
attractive economic returns and early free cash flow whilst also
providing proof of product through delivery into our offtake
agreements. As previously guided, some refurbishment and
installation of necessary equipment will be required in order to
produce the three products to Ironveld's specifications before
processing begins. The Company will update shareholders further in
due course on the acquisition progress.
Peter Cox, CEO of Ironveld, said:
"The Company is now nearing the delivery of long awaited value
to its shareholders through the execution of a strategically
important acquisition and the commencement of mining activity. By
quantum, our vanadium and HPI resources are world class and the
quality of our product validated through the long-term offtake
agreements in place. We look forward to updating our shareholders
in due course."
For further information, please contact:
Ironveld plc c/o Camarco
Peter Cox, Chief Executive 020 3757 4980
Shore Capital and Corporate Limited
Stephane Auton / Toby Gibbs (corporate
finance)
Jerry Keen (corporate broking) 020 7408 4090
Camarco
Gordon Poole / Kimberley Taylor
/ Monique Perks 020 3757 4980
Notes to Editors:
Ironveld (IRON.LN) is the owner of a High Purity Iron, Vanadium
and Titanium project located on the Northern Limb of the Bushveld
Complex in Limpopo Province South Africa. Ironveld expects to mine
its own VTM ore as feedstock for a 7.5 MW DC smelter which will
produce speciality iron products including high purity iron powder
as well as vanadium and titanium slag products.
The Definitive Feasibility Study published in April 2014
confirms the project's viability to deliver an exceptionally high
grade iron product (99.5% Fe) called High Purity Iron (HPI) which
commands a premium in the market place. Vanadium and Titanium slag
containing commercial grades of vanadium and titanium will also be
produced and sold.
Ironveld's Board includes; Giles Clarke as Chairman, Peter Cox
as CEO, Vred von Ketelhodt as CFO, Nick Harrison, Rupert Fraser and
Duncan Harvey as Non-Executive Directors.
Ironveld is an AIM traded company. For further information on
Ironveld please refer to www.ironveld.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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