Aim-listed Ironveld CEO Kris Andersson says in an operational update that he is “pleased” with progress being made on the ground, with key development across its dense media separation (DMS) plant mining operations, and smelting initiatives.

The company owns a high-purity iron (HPI), vanadium and titanium project in the northern limb of the Bushveld Complex in Limpopo, South Africa.

“We are now entering a pivotal phase as we transition into revenue generation, with sales of our DMS-grade magnetite, under the existing offtake agreement with Sable Platinum, expected to commence shortly. Encouragingly, demand for our material has exceeded expectations, with new enquiries and requests for product coming in on a consistent basis.

“The emerging opportunity to sell ore directly adds an exciting dimension to our revenue streams and further reinforces the international demand for vanadium, titanium, and iron. This is particularly promising for our future smelting operations, which are expected to deliver high-margin products and play a central role in unlocking the full value of our asset base,” Andersson explains.

“Over the coming months, we anticipate a fundamental shift in Ironveld’s trajectory, from a development-stage company to a fully operational, revenue-generating business with positive cash flow. It is an exceptionally exciting time for the company, and the team and I remain fully committed to executing our strategy and delivering long-term value for our shareholders,” he adds.

Construction of the first phase of the DMS plant is now complete and the plant has been commissioned.

Production ramp-up from stockpiled material is currently under way.

Trial production runs have been successfully completed, and the company is starting commercial production of DMS-grade magnetite for the existing offtake agreement with Sable Platinum.

Initial output from the DMS plant has been analysed by an external laboratory and the results show that the magnetite product meets the required market specifications.

A heads of agreement for a joint venture with Sable Platinum has been concluded; final legal documentation is in progress and expected to be finalised in the next few weeks.

Offtake agreements for the DMS-grade magnetite product are at an advanced stage, and the company highlights that it has potential to sell significant quantities into Mozambique, as well as locally in South Africa, where it is currently in the bidding process for a tender as previously indicated.

MINING OPERATIONS
Overburden clearance of the first mining bench has been completed.

The drilling plan has been developed and finalised, and drilling for the first blast is scheduled to be completed imminently by a third-party contractor.

The first blast of fresh ore is scheduled to take place immediately following the completion of drilling, using the same contractor engaged for the drilling operations.

Discussions with potential offtake partners for ore sales are progressing positively, with strong interest from multiple parties targeting export markets, Ironveld highlights.

SMELTING
An initial engineering study for a small-scale, water-based atomiser plant to produce HPI powder has been completed.

A comprehensive design data pack including engineering drawings, proposed procurement strategies, and a list of recommended suppliers for the pilot water-atomised HPI powder plant is currently being reviewed by Ironveld’s team and its consultants.