Another RNS also Out2 May 2023 15:48
May 2023
Ferro-Alloy Resources Limited
("Ferro-Alloy" or the "Group" or the "Company")
Full Updated Ore-Body 1 Mineral Resource Estimate
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is pleased to announce the full results of the updated mineral resource estimate ("MRE") from SRK Consulting Ltd ("SRK") prepared in accordance with the terms and guidelines of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC" or the "JORC Code") for Ore-Body 1 ("OB1") at the Balasausqandiq deposit.
MRE Highlights Include:
· An Indicated Mineral Resource of 32.9 million tonnes for OB1, at a mean grade of 0.62% V2O5, reported at a marginal cut-off grade of 0.4% V2O5 - equating to 203,364 contained tonnes of vanadium pentoxide ("V2O5")
· An increase of 8.6 million tonnes (35.4%) of mineral resource and an increase of 38,058 tonnes (23%) of contained V2O5 by comparison with the estimate contained in the Company's 2018 Competent Persons Report
· The results of the previously reported infill drilling and trenching programmes completed during 2021/22 have been successful in converting 100% of the Resources to Indicated for the OB1 deposit. No Measured or Inferred Resource are stated
· A total of 75 diamond core holes and 88 trenches were used to define the Resource (a reduction of drill section spacing to 250 metres from the original 500 metres increased confidence)
· Confirmation that there are reasonable prospects for eventual economic extraction by constraining the Mineral Resources to an optimised open pit shell (50 degree slopes and a revenue factor of 1) using a selling price for 98% V2O5 flake of USD9.82 /lb
Commenting on the MRE, Nick Bridgen, CEO of Ferro-Alloy Resources said:
"We are delighted with the results of this MRE for OB1 which has not only upgraded the classification of all the resources to the Indicated category, but increased the contained V2O5 at OB1 by 23%. Exploration of OB2, 3 and 4 has been completed and the mineral resource estimate for those ore-bodies is expected later this year.
We look forward to publishing the results of the feasibility study for Stage 1 of the Balasausqandiq project, expected to be completed in the final quarter of 2023, with the feasibility study for Stage 2 to follow in 2024."