Aim-listed Ironveld, in an operational update on its dense media separation (DMS) plant in Limpopo, South Africa, has highlighted significant progress in production stability, product quality, offtake of finished product and the identification of potential new revenue streams.

The DMS plant has now entered sustained production, operating continuously for 16 hours a day on a double shift basis.

Current processing throughput is at between 2.5 t and 3.5 t an hour against a design level of 5 t an hour.

The plant is consistently producing an average of 1.4 t an hour of in-specification DMS-grade magnetite product, together with about 1 t an hour of maghemite.

Maghemite has industrial properties and established applications as a weighting material in drilling muds for the oil, gas and mining industries.

The successful recovery of this material could provide an additional revenue stream and further enhance the overall economics of the DMS plant, Ironveld points out.

Plant parameters are currently being tuned with the objective of achieving the targeted 5 t an hour of throughput, while maintaining DMS magnetite quality, by the end of the month.

Ironveld says it remains fully committed to delivering a high-quality product that meets customer specifications to capture important market share with premium pricing.

The company reports strong commercial demand, with three clients already secured.

Two of these clients, who received about 100 t of material, have confirmed their satisfaction with the quality specification and continue to place repeat orders, Ironveld says.

The third client, a significant offtaker with a monthly consumption requirement of about 5 000 t, is scheduled to receive its first batch of sample product shortly.

While the detail is confidential, all material is being sold at the projected pricing levels, confirming the company’s ability to achieve top-tier market prices for its product, Ironveld says.

Current stock on the ground of in-specification product is about 350 t.

While the immediate priority remains achieving the short- to medium-term targets, the company is evaluating options for plant expansion in the face of strong market demand.

STUDY UPDATE
Meanwhile, work on the Layer 21 core at South African national mineral research organisation Mintek is progressing well and on schedule, Ironveld informs.

Detailed examination and description of the core have identified sections of interest.

Samples are currently being selected and will be prepared for scanning electron microscope examination to determine the precise mineralogy and will subsequently be submitted to the laboratory for comprehensive grade analysis.

Initial results are expected within 30 days, following which a process flow sheet will be developed and an economic analysis of the viability of processing the Layer 21 ore will be undertaken.

Understanding the composition and variability of Layer 21 will inform future mine planning, potential byproduct recovery and the possibility of selectively mining higher-value zones.

“I am pleased to report that the ongoing technical reconfigurations of the DMS plant have now been successful and important operational progress has been made. Achieving sustained production and consistent product quality is a significant milestone and is testament to the engineering ability and hard work of our teams. Furthermore, the unexpected potential to recover maghemite adds the potential for a new revenue stream that could significantly enhance the overall project economics,” says CEO Kris Andersson.

“Commercially, we are seeing very strong market validation. Not only do we have three clients secured with repeat orders already flowing, but the level of inbound interest suggests that market demand could outstrip what we can produce with the current plant, even at full capacity. While it is early days, this gives us confidence to evaluate future capacity expansions of the proven plant system as we continue to derisk the operation,” he adds.

“With the Layer 21 study also advancing on schedule at Mintek, there is a tangible sense of momentum across the entire business. Beyond our immediate operational priorities, we are continuously exploring other strategic opportunities and proactively engaging in conversations surrounding the full potential of our asset base,” Andersson avers.