Vanadium Resources Limited (VR8) is developing the tier 1 Steelpoortdrift Vanadium Project in the Limpopo Province of South Africa. In October 2022, the Company completed a DFS confirming Steelpoortdrift as a world-class deposit with robust economics over an initial 25 year mine life.
With the DFS completed, the Company is working towards FID with a focus on building the project development and execution team, commencing FEED studies and securing funding for construction.
VR8’s vanadium production from Steelpoortdrift will be critical to the growing Vanadium Redox Flow Battery (VRFB) industry and the strong existing demand from the Steel markets.
Steelpoortdrift Vanadium Project hosts one of the world’s largest undeveloped Vanadium deposits with a Mineral Resource of 680Mt at an average in situ grade of 0.70% V2O5 (4.74Mt contained metal). The project has a Proved and Probable Reserve of 77Mt at an average in situ grade of 0.72% V2O5 (0.55Mt contained metal). This provides for a 180+ year life of Mineral Resource at the proposed mining rate.
Located in the prolific Bushveld Geological Complex within a known mineral and Vanadium producing area, the project uses proven technology and processes to produce Vanadium Pentoxide (V2O5) flake at an initial average rate of 10,700t per annum (Stage 2 – 21,000tpa).
In October 2022, the Company completed a DFS confirming Steelpoortdrift as a world-class deposit with robust economics over an initial 25-year mine life, providing an attributable post-tax NPV7.5% of US$0.9B, IRR of 42% and a 27-month payback on a pre-production capex of US$211M.
Importantly the high grade, high quality nature of the vanadiferous titanomagnetite present at Steelpoortdrift produces a high-quality concentrate for downstream processing to produce value added specialist products. These products are suitable for the steel, renewable energy (VRFB battery) and industrial minerals markets. The concentrate contains approximately 2.1% V2O5, which is one of the highest concentrate grades available and assists in keeping operating costs low.
It’s significant size provides for a 180+ year life of Mineral Resource, with 92 years of this available in the designed open pits within a low environmental and social impact inclusion zone. Further work is being completed to look at optimising the considerable amount of the 180+ year Resource not included in the DFS mine plan. This work is at a very early stage but is targeted to involve consideration of production rates, alternative opportunities and potential partnerships with downstream users for additional operations.