Vametco Mineral Resources and Reserves Annual Update

Bushveld Minerals Limited (AIM: BMN), the AIM-listed, integrated primary vanadium producer which owns high-grade vanadium assets in South Africa, is pleased to provide an updated Mineral Resources and Ore Reserves for the Vametco vanadium mine near Brits on the Western Limb of the Bushveld Complex. The resources and reserve estimation was carried out by MSA Group Inc in accordance with the terminology and definitions given in the JORC Code (2012).

Key Highlights

• The Ore Reserve as at 31 December 2021 is 262,000 tonnes V2O5 in magnetite at a grade of 2.02 per cent V2O5 (in magnetite) (267,200 tonnes as at 31 December 2020), following mining depletion during the 12 month period.
• The combined Inferred and Indicated Mineral Resource comprises three Seams – The Lower, Intermediate and Upper Seams – and is reported at 182.7 Mt at an average grade of 1.98 per cent V2O5 (in magnetite) as at 31 December 2021, with an average magnetite content of 35.0 per cent (in whole rock) for 703.9 thousand tonnes of contained vanadium (709.8 thousand tonnes as at 31 December 2020).
• Within this, the Ore Reserve in the Probable Category comprise the same three Seams and is reported as 45.3 Mt at an average grade of 2.02 per cent V2O5 (in magnetite), with an average magnetite content of 28.6 per cent (in whole rock) for 146,900 tonnes of vanadium.
• The Lower Seam is the main ore seam and the thickest, ranging from 13.8 to 52.0 metres in thickness, comprising a Probable Reserve of 38.4 Mt at an average grade of 2.05 per cent V2O5 (in magnetite), with an average magnetite content of 29.2 per cent (in whole rock) for 128,900 tonnes of vanadium.
• The decrease in the total 2021 Mineral Resource, by 0.81 per cent less tonnes than the 31 December 2020 estimate, is attributed to mining of the seams over the last 12 months. No Mineral Resource exploration was carried out over the period.
• The decrease in the total 2021 Ore Reserves from 46.4 Mt to 45.3 Mt as at 31 December 2021 is due to the depletion of all of the seams over the 12 month period.
• An adjustment was made to the modifying factors to reflect more accurate Ore Reserve grades for the individual seams. The Ore Reserve modifying factors (mining loss and dilution) were adjusted based on pit to plant reconciliation production data supplied by Bushveld Vametco Alloys (Pty). Ltd. This resulted in a significant increase in the Upper Seam magnetite grade in line with actual performance from 26.8 per cent in 2020 to 49.4 per cent in 2021.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

“It is pleasing to see this orebody continue to deliver consistently, as per the reserves and resources estimates it is based upon. This gives us the confidence to pursue further growth in the years ahead, knowing that we have decades of mine life in front of us. It is updates like this that remind us what a unique and world-class asset we possess and that we must ensure it gets developed to its full potential over time.”

News in full

In the film below, SP Angel Analyst John Meyer highlights the investment case for Bushveld Minerals