Operational and Corporate Update

RNS Number : 8454Z

Bushveld Minerals Limited

12 February 2014

 



12 February 2014

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Operational and Corporate Update

Bushveld Minerals Limited (AIM: BMN), a mineral development company with a portfolio of vanadium and titanium bearing iron ore and tin assets in Southern Africa, is pleased to provide operations updates on its Bushveld Vanadium, Bushveld Iron Ore and Mokopane Tin Project Platforms in Limpopo Province, South Africa. 

Highlights:

·      Bushveld Vanadium Project

-      AB Zone drilling update - 3 boreholes completed, with a ~20 m intersection in borehole AB4

-      Main Magnetite Layer ("MML") - results of magnetic separation show excellent concentrate grades, with V₂O₅ recoveries of >90% 

·      Bushveld P-Q Project

-      Follow-up magnetic separation tests on the P-Q deposit confirm concentrate grades previously achieved

-      Initial flotation testing of apatite from the phosphate zone shows that saleable concentrate grades of 33.25% P₂O₅ can be achieved

-      Additional sampling of the phosphate zone completed

-      Resource upgrade delay - Company awaiting execution of the already granted licence to extend prospecting area

Fortune Mojapelo, CEO of Bushveld Minerals, said: "We are pleased with the progress made on the Bushveld Vanadium Project since launching that platform less than three months ago, and continue to target a maiden Mineral Resource Estimate for the AB Zone.

Simultaneously, the Vanadium Market Study recently commissioned, in combination with the excellent grades evidenced by our testwork on the MML deposit, will enable us to identify the optimum processing route. The existence of operational plants processing the MML layer on the Bushveld Complex provides useful precedents to choose from.

Work continues apace on the P-Q deposit in pursuit of the Pre-Feasibility Study, including the commissioning of the joint metallurgical testwork programme under our MoU with China Railway and Engineering Company (CREC No.10). This testwork is being undertaken by the Beijing Huamao Lineng Technology Co. Ltd. The positive results of the metallurgical testwork, combined with the resource modelling underway, provide an encouraging base from which to evaluate the economics of the phosphate project and extent to which this enhances the overall economics of the P-Q deposit.

Finally, we regret that due to administrative delays by the regulators in executing the amended prospecting right for the extension of the prospecting area under our license, we are yet to release the resource upgrade planned for the P-Q project. We remain confident that the geological basis for the resource upgrade remains intact and that the amended right, which has been granted, will be executed in the near future. We will proceed with the resource upgrade, as intended, thereafter."

THE BUSHVELD VANADIUM PROJECT

The objectives of the programme on the Bushveld Vanadium Project announced in December 2013 are:

a)     To define a mineral resource within the AB Zone and the hanging wall mineralisation, which will be incorporated in a resource upgrade once drilling and assaying are completed. Current programme involves at least four boreholes to depths of 100 to 200 metres 3 of which have already been completed;

b)    To undertake magnetic separation tests to define recovery and concentrate grade parameters at different grind fraction sizes for the MML;

c)     To undertake pyro-metallurgical studies to define parameters for the downstream processing of the vanadium project resource, specifically focussed on two main processing routes: the salt-roast process and the "Highveld- process" both of which are currently operational on the MML elsewhere in the Bushveld Complex;

d)    To complete a scoping study for a concentrate product and an integrated downstream project based on the Vanadium Project resource.

The Company summarises progress in respect of these objectives as follows:

Resource Definition - Progress of drilling of the vanadium-rich AB Zone

Drilling of the recently identified AB Zone commenced on the 29^th of November 2013. The AB Zone comprises a unit containing disseminated magnetite approximately 100 m below the MML, and was identified in the BV-1 borehole, where it contains in-situ vanadium grades of 1.17 % V₂O₅ and concentrate grades of 2.38% V₂O₅ (see operations update 27 November 2013). Three boreholes (AB1, AB2 and AB4) have been completed thus far, with additional drilling underway. This drilling aims to delineate the extent of the AB Zone in the project area, and to define a maiden mineral resource on this zone. In the initial two boreholes AB1 and AB2, the AB Zone is poorly developed, with only minor magnetite present. However, borehole AB4 intersected over 20m of disseminated magnetite between approximately 80 m and 100 m. Logging and sampling of these boreholes is underway, and initial assay results for the AB Zone can be expected in March 2014. Following receipt of assay results, the Company expects to complete a maiden Mineral Resource Estimate on the AB Zone.

Metallurgical testwork on the MML

Following initial Davis Tube ("DT") testwork on the MML in November 2013 (giving concentrate grades of 2.01% V₂O₅, 56.86% Fe and 11.90% TiO₂ - operations update 27 November 2013), further DT testwork at a range of grind sizes has been carried out at SGS Laboratories in Johannesburg, South Africa. The results obtained are shown in the table below, and demonstrate that excellent grades can be achieved with very high recoveries (in excess of 90%). The Company will use these results to determine an optimal grind size for the MML ore, and then conduct multiple DT tests at the chosen grind size to quantify any variability in recovery within the ore body. This will be used for Mineral Reserve calculation during Pre-Feasibility Studies.

In addition to the DT testwork, the Company has commenced testing of the salt-roast process for extraction of vanadium from the MML. These tests are being conducted at Mintek in Johannesburg, South Africa, and will test roasting and leaching of vanadium to define grades and recoveries for vanadium from MML concentrates. The Company has begun thermodynamic modelling of smelting of the MML concentrates, to defined grades and recoveries for iron and vanadium through this processing route. This modelling testwork is being conducted at Exxaro in Pretoria, South Africa.

Further to this, the Company has engaged Hatch to conduct a Vanadium Market Study, and to evaluate various options for extraction of vanadium from the MML ore, including the salt-roast process, as well as smelting options. Once a processing route has been determined, the Company will engage in pilot-scale testing of the chosen route.

Grind Size	Fe		V2O5		TiO2		SiO2		Al2O3		MgO
	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)
P80 212µm	56.83	96.27	2.01	84.33	11.90	88.23	1.97	7.24	4.19	24.19	1.71	49.14
P80 106µm	57.11	94.36	1.85	71.29	11.80	85.34	1.13	4.05	3.84	21.62	1.58	44.28
P80 75µm	56.69	93.40	1.84	71.08	11.70	84.37	1.00	3.57	3.79	21.28	1.52	42.48
P80 53µm	57.39	93.79	2.03	73.22	11.40	81.55	1.00	3.54	3.68	20.49	1.44	39.92
P80 38µm	57.25	93.15	1.81	78.30	11.70	83.32	1.00	3.53	3.62	20.07	1.39	38.36

THE P-Q DEPOSIT

Following completion of the Scoping Study in April 2013, the Company announced its intentions in respect of the P-Q Deposit to be:

a)     Continuing to upgrade the resource on the P-Q deposit;

b)    Commencing the Pre-Feasibility Study on the P-Q Project;

c)     Defining Resources on the  phosphate zone in the hanging wall of the P-Q deposit;

d)    Conducting Metallurgical testwork on the phosphate zone to determine recovery and concentrate grade parameters for a possible concentrate product;

e)     Undertaking a preliminary Economic Assessment / Scoping Study to test the potential viability of a phosphate product from the hanging wall phosphate zone.

The Company reports on progress on these objectives below:

Resource Update

The Company's target of more than 1 Billion ton resource was premised on identified and proven strike extensions to the south of the P-Q layer. The extensions were mapped based on the interpretation of airborne geophysics data, regional geochemistry data and assaying of a historical borehole drilled in the 1970s, down dip to the south on the farm Bellevue. On the basis of this the Company applied to the Department of Mineral Resources in accordance with the relevant mining legislation to extend the license area to include the farms Schoonoord 786 LR and Bellevue 808 LR into the license 95PR. This application was granted to the Company in January 2013 but is yet to be executed by the Department of Mineral Resources. The Company continues to make every effort and explore all avenues available to expedite the execution of the license, and is hopeful this will be completed soon.  The delay in executing the amended right, unfortunately, has delayed the commencement of a resource upgrade to the P-Q deposit.

Bushveld's Board and management are confident that once progressed, the application to extend the license area will secure the Company's right to the southern extension of the P-Q mineralisation on the Schoonoord and Bellevue farms. The Company remains confident of the resource potential of the strike extensions.

Positive work continues on the various aspects of the Pre-Feasibility Study initiated in Q2 of 2013 as reported below.

Metallurgical testwork on the P-Q deposit

Following from the Scoping Study on the P-Q deposit, the Company has commenced additional metallurgical testwork. Additional DT tests at a number of fine grind sizes (<200 µm) have been conducted on the Massive and Disseminated P-Q Ores to check grades and recoveries at these fine sizes. These results will be used to determine the optimal grind size of the P-Q ore, after which DT tests at the chosen grind size will be used to quantify any variability in recovery within the ore body. This will be used for Mineral Reserve calculation during Pre-Feasibility Study.

Results are presented in the table below:

Grind Size	Fe		V2O5		TiO2		SiO2		Al2O3		MgO
	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)	Grade (%)	Rec (%)
P-Q Disseminated Fresh
P80 212µm	52.08	63.79	0.52	87.03	15.70	64.74	4.88	6.35	3.90	13.05	1.37	13.24
P80 106µm	54.52	61.89	0.56	86.85	16.50	63.04	2.48	2.99	3.17	9.83	1.01	9.04
P80 75µm	55.99	62.00	0.52	78.67	16.90	62.99	1.96	2.31	3.00	9.08	0.88	7.69
P80 53µm	56.27	62.04	0.51	76.82	16.90	62.71	1.91	2.24	2.98	8.98	0.87	7.57
P80 38µm	56.20	61.28	0.54	80.44	16.90	62.02	1.81	2.10	3.10	9.24	0.90	7.74
P-Q Disseminated Weathered
P80 212µm	52.77	67.27	0.51	88.38	18.00	73.92	2.34	3.42	3.20	11.42	0.65	10.10
P80 106µm	53.26	66.56	0.49	83.25	17.90	72.06	1.91	2.74	3.09	10.81	0.61	9.29
P80 75µm	52.84	65.50	0.44	74.14	17.60	70.28	1.96	2.79	3.06	10.62	0.61	9.22
P80 53µm	52.98	61.65	0.47	74.35	17.60	65.98	1.89	2.52	3.11	10.13	0.60	8.51
P80 38µm	53.82	62.94	0.49	77.90	17.80	67.06	1.87	2.51	3.07	10.05	0.56	7.98
P-Q Massive Fresh
P80 212µm	53.82	86.85	0.39	92.54	18.10	81.66	1.98	8.93	3.37	28.87	1.17	32.45
P80 106µm	53.89	85.63	0.39	91.12	17.90	79.52	1.41	6.26	3.14	26.48	1.06	28.95
P80 75µm	54.17	83.55	0.41	92.98	18.00	77.62	1.31	5.65	3.00	24.56	0.94	24.92
P80 53µm	54.24	83.54	0.37	83.80	17.90	77.08	1.30	5.60	3.12	25.51	1.03	27.27
P80 38µm	55.29	83.69	0.39	86.81	18.10	76.60	1.44	6.09	2.93	23.54	0.88	22.89
P-Q Massive Weathered
P80 212µm	52.98	83.00	0.38	82.41	19.80	81.17	1.50	9.98	2.82	32.41	0.51	29.06
P80 106µm	53.75	81.91	0.42	88.61	20.00	79.76	1.43	9.26	2.59	28.96	0.44	24.39
P80 75µm	54.31	82.53	0.37	77.84	20.10	79.93	1.51	9.75	2.57	28.65	0.42	23.21
P80 53µm	53.33	80.14	0.39	81.13	19.60	77.07	1.48	9.45	2.63	28.99	0.43	23.50
P80 38µm	53.40	79.30	0.38	78.12	19.50	75.77	1.60	10.10	2.63	28.65	0.41	22.14

The Company has also commissioned further smelting modelling testwork on the P-Q concentrates, to be conducted by Exxaro. This is to confirm the smelting tests conducted at Mintek in 2012, and to evaluate the production of a high-titanium slag as a potentially saleable by-product from smelting. In addition, Exxaro is also conducting a range of mineralogical and ore characterisation tests to check whether the P-Q magnetite is suitable for use in coal-washing plants. There is a substantial market for magnetite used for coal washing in South Africa and neighbouring countries.

Pursuant to the MoU with China Railway and Engineering Company (CREC No.10) announced in December 2013 (RNS 0424V, 09 December 2013), the Company is pleased to confirm the joint appointment of a Chinese metallurgical consultancy, based in Beijing, to undertake the joint metallurgical testwork programme. Having agreed the scope of work, the testwork programme is expected to commence in February 2014. Positive results are to lead to further collaboration between the parties involved, with the aim of securing a strategic partner for the future development and associated funding of the P-Q Project.

Flotation testwork on the phosphate zone

Initial scouting tests on the flotation of apatite from the phosphate zone have been completed at SGS Laboratories in Johannesburg. Prior to flotation, the sample was subjected to magnetic separation to remove magnetite from the phosphate ore. The removal of magnetite resulted in an upgrade in the phosphate grade from 3.81% P₂O₅ to 6.34% P₂O₅ (79.78% apatite recovery). Three flotation tests of the apatite following removal of magnetite were conducted (30 seconds, 60 seconds and 120 seconds). These tests gave an average concentrate grade of 33.25% P₂O₅, which is a saleable grade for apatite. The overall recovery of apatite was 42.06% - additional flotation optimisation tests are underway to improve the recoveries, while maintaining the concentrate grades achieved. These results will be used, together with a Mineral Resource Estimate for the phosphate zone (see below), to assess the economic viability of the phosphate in a Scoping Study.

Additional sampling on the phosphate zone

In conjunction with the scouting flotation tests on the phosphate zone, the Company has sampled additional intersections in the phosphate zone. This sampling aims to provide complete intersections through the phosphate zone, as previous sampling had ended in zones with P₂O₅ grades of >3% in some boreholes. Assay results are expected in late February, after which the Company aims to calculate a maiden Mineral Resource Estimate on the phosphate zone, which will then be used for a Scoping Study on the phosphate ore.

MOKOPANE TIN PROJECT

Scoping Study

The Mokopane Scoping Study that was due to be released in Q4 2013 will now be released during Q1 2014, following the completion of the financial modelling currently underway.

CORPORATE DEVELOPMENTS

Appointment of Strand Hanson as Nominated Advisor

The Company has recently appointed Strand Hanson as Nominated Advisor.  Fox Davies will continue to act as broker and RFC Ambrian have been appointed as joint broker.

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 Iron Ore Project and Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling 54.39% 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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