Tando hits high-grade vanadium in first drilling at SPD project
Special Report: Tando Resources has been handed the first drilling results for its SPD project in South Africa that show it has high-grade vanadium.
The news sent shares up 10 per cent on Friday morning to an intra-day high of 11c.
The first drill hole has returned high grades of up to 1.61 per cent vanadium pentoxide (V2O5) from within broad intercepts of up to 35m.
These results are whole-rock, or pre-concentrate grades. Historical drilling adjacent to the first hole drilled by Tando returned magnetic concentrate grades above 2.2 per cent V2O5.
SPD already has a “foreign” resource of 513 million tonnes at 0.78 per cent V2O5.
And Tando is well advanced in its strategy to deliver a JORC-compliant resource, with three rigs currently operating.
JORC refers to the mining industry’s official code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
The mineralised unit comprises a series of magnetite layers, which is well established as the host rock for the vanadium mineralisation at SPD.
Phase one drilling is expected to be completed early next week with the resource to be published in November after Tando receives the remaining results from all drill holes.
The highly anticipated drilling of the high-grade vanadium pipes surrounding the SPD
deposit is set to begin next week.
Samples taken from these pipes, which start from the surface, have returned extremely high grades of vanadium, highlighting their potential to underpin a low-cost direct shipping ore (DSO) operation.
DSO refers to minerals that require only simple crushing before they are exported, which keeps costs low.
This could generate early cashflow for Tando.
Tando is also preparing for the phase two drilling program at SPD, which will be aimed at upgrading the maiden JORC resource to the higher confidence indicated category.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
Phase two drilling will comprise 58 holes for 5,550m.
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