Vanadium Resources (VR8) has confirmed “superior” grade and recoveries from its latest test work from the Steelpoortdrift vanadium project in Limpopo, South Africa.
The company is currently conducting a definitive feasibility study (DFS) to undertake mining operations and to construct a concentrator and salt roast plant.
According to Vanadium, the plant is potentially capable of initially producing 12,500 tonnes per annum (tpa) of vanadium pentoxide flake at an estimated capex of US$200 million (A$287 million).
The pilot plant test work indicated elevated overall recoveries of 84.4 per cent, indicating a four per cent increase to metrics used for the pre-feasibility study (PFS).
Further, magnetic separation concentrates indicate a reduction of reagent consumption compared to metrics used for the PFS due to the lower than expected Silica content.
Additionally, magnetic separation test work indicates vanadium pentoxide recoveries in excess of 96 per cent achievable at concentrate grades above 2.1 per cent.
CEO Eugene Nel said the results have exceeded expectations.
“Considering that every one per cent increase in recovery constitutes an increase of approximately 400,000 pounds of product per annum at current design capacities and at no additional processing cost, these results are expected to greatly advance project economics for the DFS,” Mr Nel said.
“Overall confidence in the test-work results has also improved because pilot test work was conducted over material trial-mined from the orebody itself using mining methods to be employed during operations.
“The DFS is progressing as planned, with final results expected during September 2022.”
The trial mining, bulk sampling and pilot plant test work have been completed.
Additional test work has subsequently been commissioned to investigate low-cost opportunities for processing the residue material to recover ilmenite concentrates.
Shares in Vanadium Resources were up 13.3 per cent, trading at 8.5 cents as of 10:32 am AEST.
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