Vanadium Resources meets with potential partners/offtakers in big Chinese marketing drive
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Special Report: Vanadium Resources’ (ASX:VR8) advanced Steelpoortdrift vanadium project is a genuine global standout. Now, VR8 is headed to China – the world’s largest vanadium consumer – for all-important meetings with potential customers in the steel, alloy and battery industries.
VR8’s Steelportdrift project has the largest, highest grade in-ground resource within the vanadium-rich Bushveld Complex of South Africa.
At 169 million tonnes, it also boasts the largest +1 per cent high-grade V2O5 resource in the world.
The orebody itself outcrops at surface and dips shallowly (making it ideal for very low cost, open pit mining) and simple processing yields high quality, low impurity +2 per cent V2O5 concentrates.
This chart shows how the size and grade of Vanadium Resources’ (ASX:VR8) Steelpoortdrift project – both in situ and concentrate – compares to some of its peers:
Not even close. VR8 managing director Bill Oliver says the company is in an enviable position.
“With permits in place we feel we are well ahead, with a resource that is absolutely world-class by any comparison,” he says.
VR8 is aggressively moving Steelpoortdrift towards production. The next big step is meeting with prospective customers and project partners.
In September, VR8 management and consultancy Mastermines will visit China to launch an all-important project marketing campaign.
Mastermines’ David Gillam has travelled to China numerous times over the last few years, but this is the first visit that looks to be fully booked before they leave Australia.
“Our blanket marketing began just this week and the response has been extremely encouraging,” he says.
“Our intention is to bring VR8 quickly into early [offtake/ partner] discussions and we believe we have the best contacts in vanadium throughout Asia to do just that.”
VR8 will attend a major three-day vanadium conference to create a blanket awareness of just how impressive the Steelpoortdrift vanadium project really is.
There, meetings are scheduled with major companies – and potential future customers or project partners — within the steel, alloy and battery industries.
The reaction from these groups to the recent investor presentation has already been very favourable, VR8 says.
And while they are there, management will look at using facilities in China for future test work.
China is the world’s top producer of vanadium and the country’s local expertise is often overlooked, VR8 says.
This modern test facility, visited by Mastermines in late 2018, is where China’s top professors assist local miners test vanadium along with recommending suitable or innovative processing paths:
Meanwhile, VR8’s reserve drilling program is progressing well, with 13 holes completed for 748m.
Typically, “reserves” refer to discoveries that are commercially recoverable – it’s what companies usually prove up before they start mining.
And so far, mineralisation is being intersected at intervals largely consistent with those expected by the previous resource model, VR8 says.
First samples have been delivered to the lab and results are anticipated during September, culminating in an anticipated resource update in October.