Bushveld’s consolidated vanadium resource base has grown by almost 10% with the delineation of a maiden JORC-compliant estimate for its Brits project, an undeveloped property lying directly along-strike from the group’s operating Vametco mine in South Africa. Incorporating data from last year’s drilling campaign, the Brits resource totals 67Mt at an average grade of 1.6% V2O5 in magnetite, for 313kt contained V2O5 (175kt vanadium). Approximately two-thirds of the resource is classified in the indicated category, with the balance inferred. Though lower-grade than neighbouring Vametco, the average grade of Brits is nonetheless well above global averages, further enhancing Bushveld’s strategic position as an owner of substantial high-grade primary vanadium assets. We consider Brits to hold optionality as a further ore feed source for Vametco and/or as an alternative concentrate feedstock (if needed) for the soon-to-be-acquired Vanchem operation 170km by road to the east. Brits accounts for just 4% of our unchanged 45p sum-of-parts valuation. We see potentially material upside to both our valuation and earnings estimates with completion of the Vanchem acquisition, for which we make no allowance in our current base-case forecasts (operating guidance will follow transaction close, expected no later than end October).
2018 drilling delivers maiden high-grade resource: Drawing upon data from a 26-hole, near 3,000m diamond-drilling campaign undertaken at Brits in 2018, Bushveld has compiled a maiden resource estimate totalling 67Mt an average grade of 1.58% V2O5 for 313kt contained V2O5 (175kt vanadium), of which 67% is classified as indicated and the 33% balance inferred.
Bushveld Minerals Limited (LON:BMN), together with its subsidiaries, engages in the exploration and development of mineral projects in South Africa. It operates through three segments: Vanadium and Iron Ore, Coal Exploration, and Vanadium Mining and Production.
