VR8 is a junior vanadium developer who owns 74% of the world class, tier 1, Steelpoortdrift Vanadium licensed mining project in Limpopo Province, South Africa.
The Steelpoortdrift titaniferous magnetite deposit is located in the prolific Bushveld Geological Complex within a known mineral and vanadium producing area within reach of proven processing plants, railway and road options and ports.
The Steelpoortdrift mining project is the world’s largest undeveloped vanadium deposit with a Measured, Indicated and Inferred JORC resource of 662 Mt @ 0.77% V2O5 (in situ grade), incl. 188 Mt @ 1.23% V2O5, with an in-magnetite grade of c. 2.2% V2O5.
A recently completed scoping study demonstrates the potential for strong financial metrics from the Steelpoortdrift project with a forecast NPV8% of US$401 million and costs as low as US$3.07/lb based on current vanadium prices. The scoping study is based on a proposed 1.6Mtpa standalone mining, beneficiation and processing operation to produce between 8,500 and 9,400 tonnes of high purity vanadium flake per annum. Pre-production capital is estimated at US$161.5 million, or US$187.9 million including a 15% contingency. The financial results are presented based on a price for 98% V2O5 (fob China) of US$6.95/lb.
The Company is in the process of conducting work towards a pre-feasibility study to verify the results of the scoping study and to prepare for a feasibility study to produce high purity V2O5 utilising conventional salt roasting technology.