Operations Update - Bushveld Iron Ore

RNS Number : 5481D

Bushveld Minerals Limited

31 March 2014

 



31 March 2014

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Operations Update - Bushveld Iron Ore

Bushveld Minerals Limited (AIM: BMN), a mineral development company focused on iron and tin projects in Southern Africa, is pleased to announce a JORC-Compliant Mineral Resource upgrade on the P-Q Deposit at its Bushveld Iron Ore Project in Limpopo Province, South Africa.

Highlights:

·     Additional 221 Mt of Inferred Mineral Resource iron ore ("Fe") on the P-Q Zone, from farms Schoonoord 786LR and Bellevue 808LR;

·     Total Inferred and Indicated Mineral Resource for the Bushveld Iron Ore Project has increased to 991 Mt, which includes 52 Mt (at a 40% Fe₂O₃ cut-off) on the Main Magnetite Layer ("MML"), representing an overall 29% increase in the resource from a previous 770 Mt;

·     Total Mineral Resource for just the P-Q Zone (Inferred and Indicated) is now 939 Mt (at a cut-off of 35% Fe₂O₃), representing a 31% increase in the P-Q Zone resource from 718 Mt;

·     The overall Mineral Resource grades have improved slightly to 33.5% Fe, 10.70% TiO₂, 0.20% V₂O₅ from 32.7% Fe, 10.36% TiO₂, 0.19% V₂O₅;

·     The total Mineral Resource for the high-grade Ti-magnetite Q2 Layer has increased to 259 Mt at an average grade of 41.5% Fe; 14.7% TiO₂; 0.26% V₂O₅; 

·     The Mineral Resource increase incorporates additional drilling on Schoonoord 786LR and Bellevue 808LR, which are strike extensions of the P-Q Zone.  The Mineral Resource has been declared to a maximum depth of 300 m on these farms and remains open at depth.

The Mineral Resource Statement, compiled by The MSA Group, is available in full here:

http://www.rns-pdf.londonstockexchange.com/rns/5481D_-2014-3-30.pdf

Fortune Mojapelo, CEO, commented: 

"We are pleased to announce the Bushveld Iron Ore Project's JORC-Compliant Mineral Resource upgrade to 991 Mt, achieved by incorporating strike extensions of the mineralisation to the south. This resource upgrade reinforces our confidence in the scalability of this asset, while maintaining its low cost mining proposition. Bushveld expects to prove up a Mineral Resource in excess of 1 billion tonnes by delineation of further open-pittable tonnages to the south along further strike extensions of this mineralisation.

"In addition to proving the scalability of this deposit, Bushveld is simultaneously focussed on the downstream development of the project towards production. In this regard work is continuing on, among others, the detailed metallurgical (including pyro-metallurgical) test work programme as part of its pre-feasibility studies. The intention then is to add a scalability proposition to the realisable, relatively low-capex production scenario of the scoping study announced in April 2013, which envisages utilising a fraction of the current resource.

"We also expect further Mineral Resource upgrades on the Bushveld Vanadium Project's MML layer where drilling on both the A-B Zone and hanging wall is well underway in parallel with on-going metallurgical test work."

Updated Mineral Resource Estimate - P-Q Zone

Following the recent execution of the Section 102 extension to Amended Prospecting Right 95PR (announced 21 February 2014), which added the farms Schoonoord 786LR and Bellevue 808LR to Bushveld's agglomerated licence area, the Company is pleased to announce an upgrade to the JORC-Compliant Mineral Resource Estimate for the P-Q Deposit.

P-Q Zone Inferred Mineral Resource, surface to 300 m vertical depth at a 35% Fe2O3 cut-off for the farms Schoonoord 786LR and Bellevue 808LR, as at 28 February 2014

Layer	Tonnes	Density	Fe	Fe2O3	TiO2	V2O5	SiO2	Al2O3	P2O5	S
Name	million	t/m3	%	%	%	%	%	%	%	%
Q3	75.3	3.77	34.3	49.1	10.5	0.10	23.0	9.4	0.28	0.55
Q2	85.4	4.14	42.6	60.9	14.9	0.26	13.1	6.9	0.03	0.50
Q1	13.1	3.82	36.4	52.1	12.2	0.30	19.1	9.8	0.03	0.46
PMAG	19.7	3.52	27.6	39.5	8.3	0.23	29.1	12.4	0.06	1.00
PFWDISS	27.3	3.45	27.8	39.8	8.0	0.22	28.3	12.9	0.06	0.55
TOTAL	220.8	3.85	36.2	51.9	11.8	0.20	20.1	9.2	0.12	0.60

Source: Technical Report by the MSA Group, 30 March 2014

Description of layers:

·     Q Layer;

o  Q3 - Upper disseminated and semi-massive zone;

o  Q2 - Generally massive zone;

o  Q1 - Basal disseminated zone.

·     P Layer;

o  PMAG - Generally massive zone;

o  PFWDISS - Footwall disseminated zone.

When split into 200 m-depth categories, the Schoonoord 786LR and Bellevue 808LR Inferred Mineral Resource is as follows:

P-Q Zone Inferred Mineral Resource, <300m vertical depth at a 35% Fe2O3 cut-off for the farms Schoonoord 786LR and Bellevue 808LR, as at 28 February 2014

Depth	Tonnes	Density	Fe	Fe2O3	TiO2	V2O5	SiO2	Al2O3	P2O5	S
Interval	million	t/m3	%	%	%	%	%	%	%	%
0-200 m	142.0	3.86	36.4	52.1	11.8	0.20	20.1	9.1	0.09	0.56
200-300 m	78.8	3.85	35.8	51.5	11.8	0.19	20.3	9.3	0.17	0.57
Total	220.8	3.85	36.2	51.9	11.8	0.20	20.1	9.2	0.12	0.57

The new Inferred Mineral Resources are declared for the P-Q Zone to a vertical depth limited to 300 m. The Mineral Resource is limited in extent down dip due to the presence of the ridge to the west of the P-Q Zone. Due to the high stripping ratio created by the ridge it forms a natural barrier in terms of reasonable prospects for eventual economic extraction of the P-Q Zone in an opencast scenario.

The combined Inferred and Indicated Mineral Resource for the P-Q Zone now amounts to 939 Mt (35% Fe₂O₃ cut-off), comprising:

·     348 Mt Indicated fresh and weathered Mineral Resource (<200 m);

·     142 Mt Inferred fresh and weathered Mineral Resource (<200 m);

·    449 Mt Inferred fresh Mineral Resource (200 m - 400 m). Please note that this includes 78.7 Mt of Inferred fresh Mineral Resource on the farms Schoonoord 786LR and Bellevue 808LR between 200 m and 300 m depth, as described above.

This is shown in the Table below:

P-Q Zone Mineral Resource, at a 35% Fe2O3 cut-off for the Bushveld Minerals P-Q deposit, as at 28 February 2014

	Tonnes		Density	Fe	Fe2O3	TiO2	V2O5	SiO2	Al2O3	P2O5	S
	million		t/m3	%	%	%	%	%	%	%	%
Inferred Mineral Resource
0-200 m	142.0	3.86		36.4	52.0	11.8	0.20	20.1	9.1	0.09	0.56
200-400 m	448.6	3.68		32.9	47.0	10.3	0.18	23.8	10.1	0.08	0.56
Total Inferred resource	590.6	3.72		33.7	48.2	10.7	0.19	22.9	9.9	0.09	0.56
Indicated Mineral Resource
0-200 m	347.9	3.66		33.3	47.6	10.8	0.21	22.6	9.7	0.04	0.39
200-400 m	-	-		-	-	-	-	-	-	-	-
Total Indicated Resource	347.9	3.66		33.3	47.6	10.8	0.21	22.6	9.7	0.04	0.39
Total Mineral Resource	938.5	3.70		33.6	48.0	10.7	0.20	22.8	9.8	0.07	0.49

Including the 52 Mt of Indicated Mineral Resource (40% Fe₂O₃ cut-off) on the Main Magnetite Layer, the total Ti-magnetite Mineral Resource is 991 Mt.

Competent Persons

The scientific and technical information relating to Mineral Resource estimates contained within this announcement has been reviewed and approved by Mr. Jeremy Witley, a professional geologist with more than 20 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.

Contact

For further information on Bushveld please visit http://www.bushveldminerals.com or contact:

Enquiries: [e-mail]

Bushveld Minerals Fortune Mojapelo	[phone]
Strand Hanson Limited Andrew Emmott / James Harris Warren Pearce / Scott McGregor	[phone] [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 52.22% interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar.

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

 

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