Brits Vanadium Maiden Resource - Replacement

RNS Number : 6079F

Bushveld Minerals Limited

16 July 2019

 

The following amendments have been made to the 'Brits Vanadium Maiden Mineral Resource' announcement released on 21 June 2019 at 07:00 under RNS No. 9579C.            

The net attributable figures in Table 2 (as disclosed in note 5) incorrectly stated, and were calculated on, a 74 per cent ownership interest (given a similar holding in the Company's neighbouring Vametco operation) as opposed to Bushveld's 62.5 per cent. ownership interest in the Brits Vanadium Project.

The Indicated Resource in Million Tonnes (MT), Thousand Tonnes Vanadium Pentoxide (V₂O₅) in magnetite and Thousand Tonnes Vanadium (V) in magnetite were incorrectly stated as 33.2 MT, 152.7 Thousand Tonnes V₂O₅ in magnetite and 85.5 Thousand Tonnes V in magnetite respectively as opposed to 28.0 MT, 129.0 Thousand Tonnes V₂O₅ in magnetite and 72.2 Thousand Tonnes V in magnetite.

The Inferred Resource in Million Tonnes (MT), Thousand Tonnes V₂O₅ in magnetite and Thousand Tonnes V in magnetite were incorrectly stated as 16.2 MT, 79.1 Thousand Tonnes V₂O₅ in magnetite and 44.3 Thousand Tonnes V in magnetite respectively as opposed to 13.7 MT, 66.8 Thousand Tonnes V₂O₅ in magnetite and 37.4 Thousand Tonnes V in magnetite.

The Total Indicated and Inferred Resource in Million Tonnes (MT), Thousand Tonnes V₂O₅ in magnetite and Thousand Tonnes V in magnetite were stated as incorrectly 49.4 MT, 231.8 Thousand Tonnes V₂O₅ in magnetite and 129.8 Thousand Tonnes V in magnetite respectively as opposed to 41.8 MT, 195.8 Thousand Tonnes V₂O₅ in magnetite and 109.7 Thousand Tonnes V in magnetite.

Corresponding figures by Seam (Upper, Intermediate and Lower) are also reduced by an equivalent proportion.

The gross (100%) figures (actual tonnes and vanadium in the ground) are unaffected.

All other details remain unchanged.

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.

16 July 2019

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Brits Vanadium Maiden Mineral Resource

Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, is pleased to provide a maiden Mineral Resource estimate for the Brits Vanadium Project (the "Brits Project"). The Brits Project is located on Portion 3 of the farm Uitvalgrond 431 JQ, near the town of Brits in the North West Province of South Africa and is directly along strike from the Bushveld Vametco Alloys Mine (Bushveld-Vametco). The maiden Mineral Resource incorporates data from the 2018 drilling campaign comprising 26 drill holes over a total of 2,967m of diamond drilling.

The Mineral Resource is reported in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is classified into the Indicated and Inferred Categories in Table 1 below.

Key Highlights

·      The aggregate Inferred and Indicated Mineral Resource distributed across the three seams (the Lower, Intermediate, and Upper Seams) is reported as 66.8Mt at an average grade of 1.58 per cent V₂O₅ in magnetite, at a cut-off grade of 20 per cent magnetite in whole rock for 175,400 tonnes of contained vanadium.

·      The Indicated Mineral Resource tonnages account for 67 per cent of the total combined Mineral Resource and stand at 44.9Mt with an average grade of 1.59 per cent V₂O₅ in magnetite for 115,600 tonnes of contained vanadium across the three seams.

·      The Lower Seam represents a major portion of the total combined Mineral Resource tonnages at the cut-off grade of 20 per cent, with 55.5 Mt at an average grade of 1.58 per cent V₂O₅ in magnetite for 137,000 tonnes of contained vanadium. This represents approximately 83 per cent of the total combined tonnage of the maiden Mineral Resource.

·      Within the combined Mineral Resource, the Intermediate Seam has the highest grade of the three seams at 1.76 per cent V₂O₅ in magnetite though the tonnages are low at the current cut-off grade of 20 per cent magnetite in whole rock.

·      A geological trend of decreasing grade in vanadium for magnetite-rich layers from west to east in the Bushveld Complex accounts for the lower grades on the Brits Project in comparison to the grades at the operating Vametco Mine.

·      The Mineral Resource is reported up to a depth of 150m below surface and based on the drilling on the western and central blocks of the farm Uitvalgrond Portion 3 which extends over a strike length of approximately 1.65km to the most eastern fault where the last line of drilling was completed.  As such there is potential to increase the resource on the remaining eastern unexplored portion of the farm on a strike length of 1km.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"We are pleased to be able to report solid results confirming that we have a high-quality asset at the Brits Project, where its average grade of 1.58% V₂O₅ in magnetite is among the highest in the world.

"This represents an important step in the development of Brits - as we recently detailed our path to producing over 8,400 mtV per annum and Brits provides the optionality for additional ore feed for the Vametco plant and, if required, concentrate feed for the Vanchem plant."

Table 1 Brits Vanadium Mineral Resource at a cut-off grade of 20% magnetite, 18 June 2019 - Gross Basis
Class	Seam Name	Tonnes	V2O5 grade of whole rock	Magnetite grade of whole rock	V2O5 grade of magnetite	Tonnes V2O5 in magnetite	Tonnes V in magnetite
		(Millions)	%	%	%	(Thousands)	(Thousands)
Indicated	Upper	2.0	0.66	43.64	1.51	13.4	7.5
	Intermediate	1.9	0.47	21.52	1.75	7.0	3.9
	Lower	41.0	0.56	28.54	1.59	185.9	104.2
	Total	44.9	0.56	28.94	1.59	206.3	115.6
Inferred	Upper	7.1	0.65	43.89	1.50	46.7	26.2
	Intermediate	0.4	0.44	21.13	1.85	1.4	0.8
	Lower	14.5	0.50	26.09	1.55	58.8	32.9
	Total	22.0	0.55	31.78	1.54	106.9	59.9
Indicated and Inferred	Upper	9.2	0.65	43.84	1.50	60.1	33.7
	Intermediate	2.2	0.46	21.46	1.76	8.4	4.7
	Lower	55.5	0.54	27.90	1.58	244.6	137.0
	Total	66.8	0.56	29.87	1.58	313.2	175.4

Notes:

1.      All tabulated data have been rounded and as a result minor computational errors may occur.

2.      Mineral Resources which are not Ore Reserves have no demonstrated economic viability.

3.      Magnetite grade is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.

4.      Due to the magnetite grade being a recovered grade, differences will occur between whole rock V₂O₅ grades back calculated from concentrate, versus those derived from whole rock assays.

5.      The Mineral Resource is reported as 100% of the Mineral Resource for the project.

6.      Bushveld Minerals is the operator of Brits Vanadium Project.

Table 2 Brits Vanadium Mineral Resource at a cut-off grade of 20% magnetite, 18 June 2019 - Net Attributable Basis
Class	Seam Name	Tonnes	V2O5 grade of whole rock	Magnetite grade of whole rock	V2O5 grade of magnetite	Tonnes V2O5 in magnetite	Tonnes V in magnetite
		(Millions)	%	%	%	(Thousands)	(Thousands)
Indicated	Upper	1.3	0.66	43.64	1.51	8.4	4.7
	Intermediate	1.2	0.47	21.52	1.75	4.4	2.4
	Lower	25.6	0.56	28.54	1.59	116.2	65.1
	Total	28.0	0.56	28.94	1.59	129.0	72.2
Inferred	Upper	4.4	0.65	43.89	1.50	29.2	16.3
	Intermediate	0.2	0.44	21.13	1.85	0.9	0.5
	Lower	9.1	0.50	26.09	1.55	36.7	20.6
	Total	13.7	0.55	31.78	1.54	66.8	37.4
Indicated and Inferred	Upper	5.7	0.65	43.84	1.50	37.6	21.0
	Intermediate	1.4	0.46	21.46	1.76	5.2	2.9
	Lower	34.7	0.54	27.90	1.58	152.9	85.6
	Total	41.8	0.56	29.87	1.58	195.8	109.7

Notes:

1.     All tabulated data have been rounded and as a result minor computational errors may occur.

2.     Mineral Resources which are not Ore Reserves have no demonstrated economic viability.

3.     Magnetite grade is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.

4.     Due to the magnetite grade being a recovered grade, differences will occur between whole rock V₂O₅ grades back calculated from concentrate, versus those derived from whole rock assays.

5.     The Mineral Resource is reported on a net attributable (being 62.5% of the Mineral Resource for the project).

6.     Bushveld Minerals is the operator of Brits Vanadium Project.

Enquiries: [e-mail]

Bushveld Minerals		[phone]
Fortune Mojapelo, Chief Executive Officer
Chika Edeh, Head of Investor Relations
SP Angel Corporate Finance LLP	Nominated Adviser & Broker	[phone]
Ewan Leggat / Richard Morrison
Jonathan Williams / Richard Parlons
Alternative Resource Capital	Joint Broker
Rob Collins		[phone]
Alex Wood		[phone]
BMO Capital Markets Limited	Joint Broker	[phone]
Jeffrey Couch / Tom Rider Michael Rechsteiner / Neil Elliot
Tavistock	Financial PR
Charles Vivian / Gareth Tredway		[phone]
Brunswick	Financial PR (South Africa)
Miyelani Shikwambana		[phone]

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 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.

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 Professor Richard Viljoen. Professor Richard Viljoen has more than 30 years' experience in the mining industry, including 15 years as chief consulting geologist for Gold Fields of South Africa. Notable past experience includes the development of significant mines including Northam Platinum and the Leeudoorn and Tarkwa gold mines, identifying and developing a significant platinum deposit in the Bushveld Complex for Akanani Resources as well as acting as consultant for exploration and mining companies in Canada, Mexico, Venezuela, India and China in the fields of base metals, gold and platinum. Professor Richard Viljoen has extensive 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). Professor Richard Viljoen consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Glossary of Technical Terms

Cut-off grade	The lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification.
Indicated Mineral Resources or Indicated Resources	Indicated Mineral Resource or Indicated Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed
Inferred Mineral Resources or Inferred Resources	An Inferred Mineral Resource or Inferred Resource is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Magnetite	Naturally occurring form of iron ore with the formula Fe3O4.
Mt	Millions of tonnes
mt or mtV	Metric tonne or Metric tonne of Vanadium
Ore or Mineral Reserve	Ore or Mineral Reserves are sub-divided into two categories. The "Proved" category - the highest level of Reserves or the level with the most confidence and the "Probable" category - the lower level of confidence of the Reserves. Mineral Reserves are distinguished from Mineral Resources as all the technical and economic parameters have been applied and the estimated grade and tonnage of the Mineral Reserves should closely approximate the actual results of mining. The guidelines state: "Mineral Reserves are inclusive of the diluting material that will be mined in conjunction with the Mineral Reserve and delivered to the treatment plant or equivalent facility. "The guidelines also state that: "The term 'Mineral Reserve' need not necessarily signify that extraction facilities are in place or operative or that all government approvals have been received. It does signify that there are reasonable expectations of such approvals."
Seam	A bed or a distinct layer of vein of rock in other layers of rock
Vanadium (V)	Vanadium is a chemical element with the symbol V and atomic number 23.
Vanadium Oxide (V2O5)	Vanadium(V) oxide is the inorganic compound with the formula V2O5.

 

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