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LONDON (Alliance News) - Ferro-Alloy Resources Ltd on Thursday said it is progressing on production expansion at its existing vanadium concentrate processing project in Kazakhstan.
The vanadium mining company floated of the London Stock Exchange in March after raising GBP5.2 million in its initial public offering. At the time, the company intended to use the proceeds to expand production to around 1,500 tonnes per annum, as well as conduct preliminary work on the main project to produce 22,500 tonnes per year from the Balasausqandiq mine.
Since the floatation, Ferro-Alloy said it has secured various items of equipment, including a rotating pre-roasting oven and six new leach tanks for the acid leaching of the low-grade wastes. A 25-tonne mobile crane, an additional loader, and three site transport vehicles have also been acquired, the company noted.
The engineering design work for the connection to the adjacent high voltage power line has been completed, Ferro-Alloy said, and contracts are being finalised.
The company also said it has completed the detailed design of a 990 square metre extension of the plant building, with work on the foundations already commenced.
"Following our listing on the London Stock Exchange, I have been impressed by the commitment of our on-site team and the efficiency with which we have been able to design, acquire and install equipment," said Chief Executive Nick bridgen.
"The potential of Balasausqandiq vanadium deposit, with a reserve of over 70 million tonnes estimated on a locally required basis, cannot be understated with its unique geology, industry leading low costs and capital expenditure, and its significant scale," added Bridgen.
The stock was trading down 6.2% on Thursday at 37.50 pence a share.