Ferro-Alloy Resources Limited (LON:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, has announced an update on its carbon black substitute (“CBS”) product following the completion of a new marketing study.
Summary
· A new marketing study by Smithers estimates the price of the Company’s CBS product at US$500 per tonne in the tyre market and between US$550 – US$600 per tonne in the non-tyre market (excluding any value attributable to the product’s strong sustainability credentials)
· The Study follows a test programme undertaken by Smithers’ materials science and engineering division which, by substituting standard carbon black with the Company’s CBS product in a typical rubber formulation for passenger vehicle tyre side walls, demonstrated that the Company’s CBS product can be used in the manufacture of vehicle tyre sidewalls and other rubber uses
· Previous test work performed by SGS Canada Inc indicated that the CBS product can be recovered from the vanadium process plant tailings by simple flotation methods, giving approximately 220,000 tonnes of CBS product per year and potential gross revenue generation in excess of US$110 million per year for Phase 1 of the Balasausqandiq project
