Name of the Project
Ironveld high-purity iron (HPI), vanadium and titanium project.

Location
The project is located on the northern limb of the Bushveld Complex, in Limpopo, South Africa.

The rights cover a group of seven adjacent farms – Cracouw, Harriets Wish, Aurora, Nonnenwerth and Kransplaats, in the Capricorn district municipality; and La Pucella and Altona, in the Waterberg district municipality. The rights cover 165 m2.

Client
Ironveld.

Project Description
The current resource contains 56.4-million tons of magnetite ore on the main magnetite layer of the Bushveld Igneous Complex grading 48% iron,14.7% titanium (TiO₂) and 1.12% vanadium oxide (V₂O₅) for 27-million tons of in situ iron, 8.3-million tons of TiO₂ and 632 000 t of V₂O₅.

This does not include mineralisation on the Luge farm prospecting right which is near to the current Joint Ore Reserves Committee resource and which is yet to be defined and is believed to have the same geology.

The project’s orebody is near surface enabling simple, opencast mining.

The plan is to build an initial 7.5 MW smelter as a precursor to a much larger (15 MW) pig iron plant, which will be supplied with magnetite from the Ironveld project.

Once in production, the company envisages that the 7.5 MW smelting facility will be able to generate 190.5 t of V₂O₅ in slag grading 36% V₂O₅ and 21 000 t/y of HPI powder. The third product is titanium (TiO₂) in slag with expected production of 4 134.5 t/y grading 65% TiO₂.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Ironveld has successfully concluded a R 244.08-million funding package with the Industrial Development Corporation, relating specifically to the 15 MW smelter.

Duration
Not stated.

Latest Developments
Following a successful statutory inspection of the project area, Ironveld has reported that its water-use licence application is proceeding satisfactorily, with resolution expected in the second quarter of 2018. The water-use licence represents the only outstanding licence required before the company can start mining operations. The company is now in a position to timeously begin the site establishment and civil engineering works in preparation for the start of mining activities.
 
The company is currently focused on concluding the financing for the acquisition of the 7.5 MW smelting facility and associated independent power plant, in Middelburg, from Siyanda Inkwali Smelting Services. The acquisition represents a strategically important focus for the company, allowing for the early production of V₂O₅, HPI and TiO₂. It also provides the company with a readymade smelter that is expected to deliver highly attractive economic returns and early free cash flow while providing proof of product through delivery into Ironveld’s offtake agreements.  

Some refurbishment and installation of the necessary equipment will be required to produce the three products to Ironveld’s specifications before processing begins.

Key Contracts and Suppliers
Siyanda Inkwali Smelting Services (smelter).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ironveld, tel +44 203 397 2071 or email contact@ironveld.com.