Name and Location
Bushveld Main Magnetite Layer (MML) vanadium project, Limpopo, South Africa.

Client
Bushveld Minerals.

Project Description
A scoping study completed on the Bushveld vanadium project envisages a base case production scenario of one-million tonnes a year of run-of-mine, producing 10 370 t/y of vanadium pentoxide flakes, using salt roast processing.

The salt roast process flowsheet was chosen on account of its significantly lower capital expenditure and better overall economics, as well as its relatively short path to production while retaining options for further processing of the iron–rich calcine to produce pig iron at a later stage.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value of $561.9-million and an estimated pretax internal rate of return of 35.6%. Payback is estimated at four years and four months from the start of mining.

Value
The scoping study has estimated capital expenditure of $261.5-million.

Duration
Not stated.

Latest Developments
A recent mineral resource estimate on mineralisation identified in the hanging wall of Bushveld Minerals’ MML vanadium project, in Limpopo, has added 68.7-million tonnes of inferred mineral resources at a cutoff of 25% iron, with an average grade of 28.8% iron and 0.75% vanadium pentoxide.

The total mineral resource now stands at 120.5-million tonnes at a cutoff of 25% iron for the combined inferred and indicated mineral resource, representing an increase of 130% in the project’s reported tonnage.

Pending metallurgical testwork, potential remains to define additional mineral resources on other layers, the company has said.

“The initial 52-million-ton indicated mineral resource announced for the project – on which we have recently completed a scoping study – is already a world-class deposit with exceptional in situ grades of 1.48% vanadium pentoxide and in-magnetite grades of 2.01% vanadium pentoxide.

“This update comprises the layers within the hanging wall package of the MML, which was assumed in the recent vanadium project scoping study to be mined as waste and stockpiled to access the MML itself,” notes CEO Fortune Mojapelo.

Based on iron and vanadium pentoxide, certain layers in the hanging wall could be included in the project's total mineral resource inventory and will improve the overall tonnage of the project.

The MML hanging wall mineral resource has been estimated to a vertical depth of 120 m and is open at depth, which presents further scope for tonnage increases in the future.

“In addition, this mineral resource update excludes several layers with average grades of 0.3% vanadium pentoxide within the hanging wall package. If metallurgical testwork demonstrates economic recoveries, these layers could also significantly increase the overall tonnage,” he adds.

Key Contracts and Suppliers
Process Engineering Solutions Company, Hatch Goba, Hindsight Financial & Commercial Solutions (scoping study); SGS South Africa (extractive metallurgical testwork); and MSA Group (resource estimations).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Bushveld Minerals, tel +27 11 268 6555, fax +27 11 268 5170 or email info@bushveldminerals.com.
Hatch Goba, tel +27 11 239 5300 or fax +27 11 239 5790.
SGS South Africa, tel +27 11 681 2500 or fax +27 11 433 3654.
MSA Group, tel +27 11 880 4209, fax +27 11 880 2184 or email info@msagroupservices.com.