Name of the Project
Steelpoortdrift vanadium project.

Location
Bushveld Complex, in Limpopo, South Africa.

Project Owner/s
Vanadium Resources Limited (VR8 – 86.49%).

Project Description
Steelpoortdrift has the potential to be a world-class, large-scale and low-cost vanadium producer with projected bottom-quartile global operating costs and capital expenditure (capex) metrics. The project comprises the proposed Steelpoortdrift mine and concentrator, as well as the Tweefontein salt roast leach (SRL) operation.

The project entails the openpit mining of titaniferous vanadium ore and the treatment of run-of-mine (RoM) ore through an on-site concentrator, as well as the secondary treatment of concentrate through an SRL plant.

A definitive feasibility study (DFS), released in October 2022, concluded that the project could produce 484 000 t of vanadium pentoxide (V₂O₅) flake over an initial 25-year life-of-mine (LoM), with total concentrate produced estimated at 29.08-million tonnes.

Total RoM ore and waste tonnes over the LoM are estimated at 80.32-million tonnes and 70.54-million tonnes respectively, giving the project an attractive strip ratio of 0.88.

Steelpoortdrift’s total Joint Ore Reserves Committee-compliant resource is estimated at 680-million tonnes grading 0.70% V₂O₅. Consequently, there is potential for the project to support a 180-year mine life at the proposed mining rates.

The October 2022 DFS illustrates how the project could be built in two phases. Phase 1 (Years 1 to 4), based on a mining rate of 1.6-million tonnes a year of vanadium ore at an average in situ grade of 0.83% V₂O₅, will be processed through the concentrator and SRL plant to produce 11 000 t/y of 98% V₂O₅ flake.

Phase 2 will entail the expansion of the plant and increase the mining rate to 3.5-million tonnes a year of ore at an average grade of 0.71% V₂O₅, with production almost doubling to 21 000 t/y of 98% V₂O₅ flake.

Potential Job Creation
Once the project has been funded, the project will create a range of job opportunities through the construction stages and then into production. The job opportunities will be open to potential employees from within South Africa, the local region and the affected communities directly surrounding the project, including senior management as well as skilled technical, semiskilled and unskilled workers.

Net Present Value/Internal Rate of Return
The October 2022 DFS estimates an after-tax net present value (NPV), at a 7.5% discount rate, of $1.21-billion and an internal rate of return of 42%, with a payback of 27 months.

Capital Expenditure
The October 2022 DFS outlined Phase 1 capex of about $211-million, and Phase 2 capex of about $188-million.

Planned Start/End Date
Construction is expected to start during the first half of 2025, with production scheduled to start during 2026/27.

Latest Developments
VR8 has signed a memorandum of understanding (MoU) with China Energy International Group for engineering, procurement and construction (EPC) services, as well as financing assistance.

that the MoU will strengthen the relationship between the companies and pave the way for more value-add opportunities that could help the company transform into a vertically integrated vanadium producer, VR8 MD John Ciganek has said.

Key Contracts, Suppliers and Consultants
China Energy International Group (EPC services and financing assistance).

Contact Details for Project Information
Vanadium Resources Limited, tel +61 8 6158 9990 or email contact@vr8.global.