Vanadium Project Resource Update

RNS Number : 8285W

Bushveld Minerals Limited

12 November 2014

 



12 November 2014

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Vanadium Project - Significant Mineral Resource Update

Bushveld Minerals Limited (AIM: BMN), a mineral development company with a portfolio of projects in Southern Africa, is pleased to provide a Mineral Resource update at its Bushveld Vanadium Project in the Limpopo Province, South Africa. 

Highlights:

·      136% increase in Mineral Resource tonnes compared to the previous Mineral Resource of 120.5 Mt reported on 1 September 2014 at a 25% Fe cut-off

·      Mineral Resource Estimate defined using a Vanadium based cut-off grade rather than an Iron based cut-off grade as a result of the Davis Tube test work announced 14^th October, and in line with developing the MML deposit as a Vanadium focused platform

·      Total re-evaluated Mineral Resource Estimate of 284.8 Mt, (containing 1.9 Mt V₂O₅) based on a 0.3% V₂O₅ cut-off for the Main Magnetite Layer (MML) and MML Hanging Wall (MML HW)

·      Increase in Mineral Resource as a result  of the inclusion of several layers of the MML HW  (UG-A, UMG1, MAG1 HW GAB, MML HW) and the MML PARTING (between MAG3 and MAG4) following positive metallurgical test work and financial analyses on layers reporting >0.3% V₂O₅

·      As part of the Updated Mineral Resource Estimate, the MML Indicated Resource is re-evaluated to 63.2 Mt with inclusion of the parting between MAG3 and MAG4 layers and retains high in-situ V₂O₅ grade of 1.32%

Fortune Mojapelo, CEO of Bushveld Minerals, said: "This Mineral Resource Update concludes the process of evaluating the potential of the various titano-magnetite-bearing layers known as the MML and MML Hanging Wall at our Vanadium Project. We are pleased with the 284.8 Mt Mineral Resource established, which represents a significant 136% increase compared to the Mineral Resource Estimate of 1 September. That this additional Mineral Resource mainly comes from Hanging Wall layers that would otherwise have constituted waste during the mining of the MML yet contain titano-magnetite with in-magnetite grades of ≥1.5% V₂O₅ underscores the significant upside potential of this project."

THE BUSHVELD VANADIUM PROJECT

On 14t^h October 2014, the Company announced positive results of metallurgical Davis Tube test work assessing the grade and recovery of titano-magnetite from hanging wall units of the MML. The Company has since undertaken a financial analysis on the MML HW layers and additional Low-Intensity Magnetic Separation (LIMS) test work at SGS laboratories (Johannesburg) to determine realistic vanadium recoveries. These studies showed that MML HW layers with relatively low whole rock vanadium concentrations of 0.3% to 0.7% V₂O₅ can be upgraded to a Ti-magnetite concentrate with vanadium grades of 1.5% to 1.6% V₂O₅. The Company engaged The MSA Group to re-evaluate the Mineral Resource Estimate (MRE) for the MML and MML HW based on a 0.3% V₂O₅ cut-off grade to establish a new Vanadium based MRE. The previous MRE, announced on 1^st September 2014 was based on a cut-off of 25% Fe for the MML and MML HW layers.

The table below summarises the updated MRE for the MML and MML HW based on a 0.3% V₂O₅ cut-off and is reported according to JORC (2012).

Mineral Resource at a 0.3% V₂O₅ cut-off, ≤120 m vertical depth, as at 6 November 2014

Layer	Mineral Resource Category	Width	Tonnes	SG	V2O5	Fe	Fe2O3	TiO2	SiO2*	Al2O3*	P2O5*	S*	V2O5	Fe
Name		m	Mt1	g/cm3	%	%	%	%	%	%	%	%	Kt2	Mt1
UG-C	Inferred	4.04	31.8	3.48	0.64	25.7	36.7	5.9	30.2	15.4	0.01	0.12	202.8	8.2
UG-A	Inferred	1.64	12.7	3.31	0.59	23.2	33.1	5.3	32.5	17.5	0.01	0.01	75.6	3.0
UMG1	Inferred	3.24	25.5	3.30	0.59	22.9	32.7	5.4	32.6	17.6	0.01	0.01	150.4	5.8
UMG2	Inferred	2.03	15.7	3.40	0.69	25.9	37.0	6.2	29.4	16.7	0.01	0.01	107.7	4.1
MAG1 HW GAB**	Inferred	17.53	72.3	3.02	0.31	13.1	18.8	2.9	42.0	21.9	0.01	0.12	223.3	9.5
MAG1	Inferred	1.31	12.0	3.96	1.07	40.0	57.1	9.7	15.6	10.8	0.01	0.06	128.7	4.8
MAG2	Inferred	1.10	9.2	3.57	0.83	30.2	43.1	7.2	25.1	15.1	0.01	0.06	76.3	2.8
MML HW	Inferred	5.89	42.3	3.01	0.32	13.4	19.2	2.5	42.2	21.6	0.02	0.11	136.0	5.7
Total	Inferred	36.77	221.5	3.21	0.50	19.8	28.3	4.4	35.7	18.9	0.01	0.08	1,100.8	43.8
MAG3	Indicated	4.09	27.5	4.08	1.50	45.5	65.1	10.0	10.6	7.8	0.01	0.12	412.5	12.5
PART	Indicated	2.16	11.4	3.16	0.58	20.9	29.9	3.5	34.5	19.0	0.01	0.17	66.3	2.4
MAG4	Indicated	3.59	24.3	4.00	1.46	43.9	62.7	9.3	11.8	8.9	0.01	0.24	354.9	10.7
Total	Indicated	9.84	63.2	3.85	1.32	40.4	57.8	8.6	15.4	10.2	0.01	0.18	833.7	25.6
Total Mineral Resources3		46.61	284.8	3.33	0.68	24.4	34.8	5.4	31.2	17.0	0.01	0.10	1,934.5	69.4

¹Mt = million tonnes

²Kt = thousand tonnes

³Rounding may cause computational errors

*Included for informative purposes only, no value will be derived from these materials

**A 0.30% V₂O₅ cut-off has been applied laterally across this layer such that only material >0.30% V₂O₅ is included in the tonnage listed in this table

Competent Person

The scientific and technical information relating to Mineral Resource estimation contained within this announcement has been reviewed and approved by Mr Jeremy Witley, a professional geologist with more than 25 years' experience in base and precious metals exploration and mining as well as Mineral Resource evaluation and reporting. He is Principal Resource Consultant for the MSA Group and has the appropriate relevant qualifications, experience, competence and independence to be considered a "Competent Person" under the definitions provided in the JORC Code 2012 Edition.

Enquiries: [e-mail]

Bushveld Minerals Fortune Mojapelo	[phone]
Strand Hanson Andrew Emmott	[phone]
Fox Davies Jonathan Evans	[phone]
RFC Ambrian Jonathan Williams	[phone]
Tavistock Communications Jos Simson/ Nuala Gallagher	[phone]
Tielle Communications Stéphanie Leclercq	[phone]

- ENDS -

Notes to the editor

Bushveld Minerals Limited is a mineral development company with a portfolio of vanadium-and titanium bearing iron ore and tin assets in Southern Africa. The Company owns the Bushveld Vanadium Project, P-Q Iron Ore and Titanium Project and Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling 57.21% interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar.

Bushveld was admitted to the AIM Market of the London Stock Exchange in March 2012.

 

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