Vanadium Resources Limited (ASX: VR8; FRA: TR3) ("VR8") is developing the Steelpoortdrift Vanadium Project, a 74% owned, tier 1, licensed mining project located in the Limpopo Province of South Africa (86.49% interest subject to completion as announced in May 2023).
The Steelpoortdrift project is titaniferous magnetite deposit and is located in the prolific Bushveld Geological Complex within a known mineral and vanadium producing area. Accordingly, the Project is within reach of proven processing plants, railway and road options, ports and utilities.
Steelpoortdrift is host to 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). At current throughput rates the Mineral Resource has a life of over 180 years.
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.
Having completed the DFS, the Company is working towards Final Investment Decision (with a Q4 CY2023 target) with a focus on building the project development and execution team, commencing the FEED studies, securing debt financing and partnering with strategic groups to ensure the maximum value of the project is unlocked.