TIDMFAR
RNS Number : 1516Y
Ferro-Alloy Resources Limited
02 May 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT
FORMS PART OF THE LAWS OF ENGLAND AND WALES BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
2 May 2023
Ferro-Alloy Resources Limited
("Ferro-Alloy" or the "Group" or the "Company")
Full Updated Ore-Body 1 Mineral Resource Estimate
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer
and developer of the large Balasausqandiq vanadium deposit in
Southern Kazakhstan , is pleased to announce the full results of
the updated mineral resource estimate ("MRE") from SRK Consulting
Ltd ("SRK") prepared in accordance with the terms and guidelines of
the Australian Code for the Reporting of Exploration Results,
Mineral Resources and Ore Reserves ("JORC" or the "JORC Code") for
Ore-Body 1 ("OB1") at the Balasausqandiq deposit.
MRE Highlights Include:
-- An Indicated Mineral Resource of 32.9 million tonnes for OB1,
at a mean grade of 0.62% V(2) O(5,) reported at a marginal cut-off
grade of 0.4% V(2) O(5) - equating to 203,364 contained tonnes of
vanadium pentoxide ("V(2) O(5) ")
-- An increase of 8.6 million tonnes (35.4%) of mineral resource
and an increase of 38,058 tonnes (23%) of contained V(2) O(5) by
comparison with the estimate contained in the Company's 2018
Competent Persons Report
-- The results of the previously reported infill drilling and
trenching programmes completed during 2021/22 have been successful
in converting 100% of the Resources to Indicated for the OB1
deposit. No Measured or Inferred Resource are stated
-- A total of 75 diamond core holes and 88 trenches were used to
define the Resource (a reduction of drill section spacing to 250
metres from the original 500 metres increased confidence)
-- Confirmation that there are reasonable prospects for eventual
economic extraction by constraining the Mineral Resources to an
optimised open pit shell (50 degree slopes and a revenue factor of
1) using a selling price for 98% V(2) O(5) flake of USD9.82 /lb
Commenting on the MRE, Nick Bridgen, CEO of Ferro-Alloy
Resources said:
"We are delighted with the results of this MRE for OB1 which has
not only upgraded the classification of all the resources to the
Indicated category, but increased the contained V(2) O(5) at OB1 by
23%. Exploration of OB2, 3 and 4 has been completed and the mineral
resource estimate for those ore-bodies is expected later this
year.
We look forward to publishing the results of the feasibility s
tudy for Stage 1 of the Balasausqandiq project, expected to be
completed in the final quarter of 2023, with the feasibility study
for Stage 2 to follow in 2024."
Overview of the April 2023 Mineral Resource Estimate for
Balasausqandiq OB1 Deposit
The MRE for the Balasausqandiq OB1 vanadium deposit was based on
the historic and latest infill trench and diamond drill programme
completed in 2021-2022. The Resource has been estimated from 35 new
drillholes and 29 new trenches and was aimed to verify historic
diamond drilling and trenching. A total of 75 diamond core holes
and 88 trenches have now been used to define the Resource.
The current estimate is based on diamond core and trench
profiles sections at a 250 m spacing along the strike of the OB1
deposit. A pit optimization study has also been conducted to assess
the reasonable prospects for eventual economic extraction. The
latest TetraTech testwork shows high recoveries in the order of 85
to 95% V(2) O(5) across all grade ranges. The pit optimisation used
an overall slope angle of 50 degrees, a processing recovery of 85%
and a revenue factor of 1.0 for a selling price of USD9.82 /lb to
give a conservative evaluation and achieve the head grade for which
the 85% processing recovery was applicable at the marginal cut-off
grade.
Results of the updated MRE are an Indicated Mineral Resource of
32.9 million tonnes (Mt) at a mean grade of 0.62% V(2) O(5)
reported at a marginal cut-off grade of 0.4% V(2) O(5) .
No Measured or Inferred Resources are reported. Table 1 below
presents a summary of the OB1 MRE broken down by metal and Resource
Classification.
Table 1. Summary Report for April 2023 MRE OB 1 Resource
Classification Zone Tonnage (Mt) % V(2) % Mo % U % C
O(5)
---------------- ------------------ ------------- -------- ------- -------- ------
Oxide
Transitional
Indicated Fresh (Sulphide) 1.57 0.67 0.014 0.0047 7.16
---------------- ------------------ ------------- -------- ------- -------- ------
1.25 0.66 0.014 0.0045 7.17
----------------------------------- ------------- -------- ------- -------- ------
30.08 0.61 0.015 0.0052 8.83
----------------------------------- ------------- -------- ------- -------- ------
Total 32.90 0.62 0.015 0.0051 8.69
------------------------------------ ------------- -------- ------- -------- ------
Notes for Mineral Resource Estimate:
-- Mineral Resources have an effective date of 1st April 2023
-- Reported Mineral Resources are those remaining below the
depleted current historic pits and topographic surface as of 1st
April 2023
-- All Resources are reported above a cut-off grade of 0.4% V(2) O(5)
-- The MRE established that there are reasonable prospects for
eventual economic extraction by constraining the Mineral Resources
to an optimised open pit shell (50 degree slopes and a revenue
factor of 1) using a selling price for 98% V(2) O(5) flake of
USD9.82 /lb
-- Tonnages are reported in metric units, grades in percent (%).
All contained metal is reported in tonnes. Tonnages, grades, and
contained metal totals are rounded appropriately. Rounding as
required by reporting guidelines may result in apparent summation
differences in Table 1
Table 2. Comparison of 2018 and 2023 MRE Estimates
Estimate Tonnage (Mt) % V(2) Contained V(2)
O(5) O(5) (t)
2018 MRE COG 0.0% (Ind
+ Inf) 24.3 0.68 165,306
------------ ------ --------------
2023 MRE Indicated COG
0.4% (Indicated) 32.9 0.62 203,364
------------ ------ --------------
The Competent Person for the declaration of Mineral Resources is
Mr Peter Gleeson (CEng, MIMMM, AIGS), an employee of SRK. The
Mineral Resource estimate was prepared by a team of consultants
from SRK.
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited / William Callewaert
(CFO)
Shore Capital Toby Gibbs/John More
(Joint Corporate Broker) +44 207 408 4090
Liberum Capital Limited Scott Mathieson/William
(Joint Corporate Broker) King +44 20 3100 2000
-------------------------- ---------------------
St Brides Partners
Limited
(Financial PR & IR Catherine Leftley/Ana
Adviser) Ribeiro +44 207 236 1177
-------------------------- ---------------------
About Ferro Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq
deposit in Kyzylordinskoye Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq vanadium project (the
"Project"); and
b) an existing vanadium concentrate processing operation (the
"Existing Operation")
Balasausqandiq is a very large deposit, with vanadium as the
principal product together with several by-products. Owing to the
nature of the ore, the capital and operating costs of development
are very much lower than for other vanadium projects.
The most recent mineral resource estimate for ore-body one (of
five) provided an Indicated Mineral Resource of 32.9 million tonnes
at a mean grade of 0.62% V(2) O(5) equating to 203,364 contained
tonnes of V(2) O(5) . In the system of reserve estimation used in
Kazakhstan the reserves are estimated to be over 70m tonnes in
ore-bodies 1 to 5 but this does not include the full depth of
ore-bodies 2 to 5.
The Project will be developed in two phases, Phase 1 and Phase
2, treating 1m tonnes per year and an additional 3m tonnes per
year. Production will be some 5,600 tonnes of V(2) O(5) from Phase
1, rising to 22,400 tonnes V(2) O(5) after Phase 2 is
commissioned.
There is an existing concentrate processing operation at the
site of the Balasausqandiq deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then expanded and adapted to recover vanadium, molybdenum and
nickel from purchased concentrates.
The existing operation is located on the same site and uses some
of the same infrastructure as the Project, but is a separate
operation which will continue in parallel with the development and
operation of the Project.
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