Name of the Project
Steelpoortdrift vanadium project.

Location
Limpopo, South Africa.

Project Owner/s
Vanadium Resources.

Project Description
A definitive feasibility study (DFS) has reaffirmed Steelpoortdrift’s potential to be a world-class, large-scale and low-cost vanadium producer with competitive operating and capital expenditure (capex) metrics.

The project comprises the openpit mining of titaniferous vanadium ore, primary treatment of run-of-mine (RoM) through an on-site concentrator and secondary treatment of concentrate through a salt roast leach (SRL) plant to produce a greater than 98% vanadium pentoxide flake.

The DFS, completed in September 2022, has concluded that the project could produce 484 000 t of vanadium pentoxide flake over an initial 25-year life-of-mine (LoM), with total concentrate produced estimated at 29.08-million tonnes. Total RoM tonnes over the LoM is estimated at 80.32-million tonnes grading at about 0.71% vanadium pentoxide, with total waste tonnes estimated at 70.54-million tonnes.

The DFS further proposes the construction of a solar power plant, which is expected to reduce carbon emissions and carbon tax by 34%.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The September DFS estimates an after-tax net present value (NPV), at a 7.5% discount rate, of $1.21-billion and an internal rate of return (IRR) of 42%, with a payback of 27 months, compared with an NPV of $1.2-million tonnes, at a 7.5% discount rate, and an IRR of 45% in the June 2021 prefeasibiity study.

Capital Expenditure
Phase 1 capex has increased from $200-million to an estimated $211-million. Phase 2 capex has increased from $147-million to $188-million.

Planned Start/End Date
Construction is expected to start in March 2024. Mining and production is scheduled to start at the end of the fourth quarter of 2024.

Latest Developments
Vanadium Resources is expected to make a final investment decision by July 2023.

Key Contracts, Suppliers and Consultants
Consulmet Metals (SRL plant); DRA Projects (photovoltaic plant); Minopex Technical Advisory (operational readiness); Nurizon Consulting (surface water, near surface geotechnical studies and tailings storage facility design); Red Kite Environmental Solutions and associated specialist consultants (environmental baseline studies and hydrogeology); Sound Mining International (geological modelling, mineral resource estimation, geotechnical studies for mining, openpit optimisation, mine design, scheduling, ore reserve estimation);
SPH Kundalila (mining costing); Tenement Mining (compilation of DFS report); and UMS METS (concentrator plant).

Contact Details for Project Information
Vanadium Resources, tel +61 8 6158 9990 or email contact@vr8.global.