PERTH (miningweekly.com) – The share price of ASX-listed Tando Resources closed nearly 18% higher on Monday after the company announced plans to implement parallel development strategies for its SPD vanadium project, in South Africa.
The company said that following the results of the May scoping study, the company has taken the decision to convert the Phase 1 scoping study into a prefeasibility study (PFS) and to commence the development of Phase 2.
Phase 1 is based on the production of a high quality concentrate for both direct sale to end-users and also as feed for the Phase 2 operation.
The Phase 1 project is based on a 2.2-million tonne a year stand-alone operation, which is expected to produce an average of 0.79-million tonnes a year of vanadium concentrate, over a 25-year mine life.
“The confirmed superior resource base of SPD allows for both the production of a high grade vanadiferous titano-magnetite concentrate for sale and as a feedstock for a modern plant planned to produce specialist vanadium products used by the steel and renewable energy industries,” said Tando MD Bill Oliver.
“The project now has real momentum which will gain pace as we undertake the PFS, complete reserve drilling, finalise offtake contracts and move to secure project funding. With the excellent geological and financial metrics that flowed from the scoping study, the project is now poised to gain momentum to take its rightful place as a globally significant vanadium deposit and one of the next producing projects in the world.”
While offtake discussions are ongoing, Tando will continue to advance development of Phase 1 with the PFS and reserve drilling programme set to start this month. Given the extensive work undertaken as part of the scoping study, the PFS will likely be completed in a relatively short timeframe at around four months at just a cost of A$250 000.
The drilling programme is expected to cost an additional A$120 000.
Concurrent with the work for Phase 1, Tando will continue to advance the further commercialisation of SPD through studies into the Phase 2 project, which will use the high quality concentrate generated in Phase 1 for downstream processing to produce value added specialist products suitable for the steel, renewable energy and industrial minerals market.
The Phase 2 studies will initially assess which technologies and processing options are most appropriate for the vanadiferous titanomagnetite concentrate produced from SPD with the purpose of determining the optimum method, or combination of methods of downstream processing that would deliver the highest value for the company.
The Phase 2 studies are aimed at unlocking significantly higher value and transform Tando into a producer of high value specialist products suitable for the steel, renewable energy and industrial minerals market.
Phase 2 will also aim at generating specialist iron and titanium products from the suit of economic elements contained within the SPD mineraliation which could distinguish Tando from existing competitors.
Tando shares closed at a high of 2c a share, up from an opening price of 1.7c a share.