Tando keeps the shallow high-grade vanadium hits coming from SPD project
Mining & Resources
Special report: Tando Resources has unearthed more shallow, high-grade vanadium at its SPD project in South Africa.
The latest drilling results show high grades of up to 1.72 per cent vanadium pentoxide (V2O5) nearsurface — which is even better than the highest initial grades of up to 1.61 per cent reported by Tando earlier in October.
These results are whole-rock, or pre-concentrate grades. Historical drilling at SPD has returned magnetic concentrate grades above 2.2 per cent V2O5.
The latest results are from the recently completed phase-one drilling program, which targeted the established SPD deposit that currently hosts a “foreign” resource of 513 million tonnes at 0.78 per cent V2O5.
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.
“These results are further evidence of the high-grade, near-surface vanadium mineralisation at SPD,” managing director Bill Oliver said.
“Results such as these will underpin the impending maiden JORC resource.”
More to come
Tando is on track to release the initial resource in November.
Tando is also investigating the potential for a low-cost direct shipping ore (DSO) operation underpinned by shallow vanadium pipes at the project.
Samples taken from these pipes, which start from the surface, have returned extremely high grades of vanadium and Tando said today that it had started drill testing these targets.
DSO refers to minerals that require only simple crushing before they are exported, which keeps costs low.
This could generate early cashflow for Tando at a time when vanadium prices continue to head north.
The vanadium price punched through the $US20 per pound mark in September and have since rocketed past $US30 per pound — a 300 per cent increase just this year.
“While we await assays to finalise the resource estimation, the phase-two drilling program is
continuing along with drilling of the shallow vanadium pipes nearby,” Mr Oliver said.
“This multi-pronged strategy will give us strong news flow for several months as we push to
unlock the value of this outstanding asset.”
The phase-two drilling program will comprise 5550m across 58 holes, and aims to upgrade the maiden resource to the higher confidence “indicated” category.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
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