Bushveld Minerals Releases PFS for Mokopane Vanadium Project

February 4, 2016

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Bushveld Minerals Ltd. (LSE:BMN) released a prefeasibility study (PFS) for the South Africa-based Mokopane vanadium project. The company holds a 64-percent stake in Mokopane.

Highlights from the PFS include:

  • Massive resource: Ore reserve of 28.56 million tonnes delineated from total resource of 298Mt –
  • Long-term mine life: 30-year life-of-mine (from less than 10% of the total project resource of 298Mt)
  • Project risk minimised: The proven and established salt roast processing method lowers project risks
  • High-quality product: The PFS suggests a 1.0 Mtpa run-of-mine operation producing on average 9.525 tpa of vanadium pentoxide flakes at 99.5 weighted percent purity
  • Low cost product: Over the life-of-mine the average combined total cost is estimated at US$3.28/lb V2O5, indicating one of the lowest-cost vanadium producers globally
  • Robust project economics: Pay-back period of four years with a pre-tax NPV of US$418m (based on a 9% base case discount rate) and an IRR of 24.8% (pre-tax) using a conservative long-term US$:ZAR12.75 exchange rate and a real vanadium price of US$7.50/lb V2O5 (US$16.53/kg V2O5)

Chief Executive Fortune Mojapelo commented:

The results of the PFS confirm the emergence of Mokopane Vanadium as a market-leading vanadium project. Mokopane compares more than favourably with other leading vanadium deposits in the world, and this study defines its importance as a major asset, with strategic significance to the future market for vanadium.

For us, a notable take-away from this study points to its low-cash costs of production and significant market share for the Mokopane project – with run-of mine production contributing ~6% of global annualised vanadium output and ~50 % of South African output, thereby totally repositioning Bushveld in the vanadium market space.

(TSXV:VRB) main objective is to become the only primary producer of high purity vanadium products in North America through systematic development and strategic partnerships.  to learn more.

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