Bushveld Minerals Regulatory News (BMN)

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

22 March 2019

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Drilling Results at Brits Vanadium Project

Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets in South Africa, is pleased to provide an update in respect of the exploration programme at the Brits Vanadium Project ("Brits"), which lies adjacent to the Company's Vametco open pit mine and processing facility in the North West Province.

Key Highlights

§ The aim of the current exploration programme is to provide enough confidence to deliver a Maiden Mineral Resource Estimate before the end of Q2 2019.

§ Assay results to date reaffirm the potential for an eastward extension of the current orebody being mined at Vametco.

§ The sample analysis results from the 10 boreholes reported (BVL009-BVL019, excluding BVL018) indicate consistency in grade (both in situ and in magnetite concentrate) of the main orebody i.e. the Lower Seam ("LS") and also thickness of that Layer at Brits.

§ The weighted average V2O5 grade for the LS in situ / in whole rock is 0.66%, the weighted average V2O5 grade of the LS in magnetite concentrate is 1.66%.

· A geological trend of decreasing grade in vanadium for magnetite-rich orebodies from west to east in the Bushveld Complex accounts for the marginally lower grades on Brits in comparison to the grades at the operating Vametco Mine.

§ The positive results and high grades demonstrate the deposit's ability to be a future source of raw material for the Vametco plant and future brownfield processing plants.

§ Consistency and continuity of the Intermediate Seam ("IS") expected to be confirmed by the next set of boreholes (BVL018 and BVL020 to BVL026).

§ The Vametco Mineral Resource Estimate will be published next week.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented: 

"We are pleased with the drilling results received to date from our exploration work at Brits. Although, the average grade of 1.66% V2O5 in magnetite concentrate is slightly lower than Vametco, they are still among the highest in the world. The results confirm the continuation of the orebody being mined at Vametco and provide the potential for additional feed tonnages for the Vametco plant and future brownfield processing plants.

"We look forward to announcing further results shortly, as well as the maiden resources estimate by mid-year."

Brits Vanadium Project

Assay results for 10 boreholes from the second phase of exploration drilling at Brits have been received, and these are BVL009 to BVL019 (excluding BVL018). Results for Boreholes BVL018 and BVL020 to BVL026 have been delayed by the laboratory and will be reported during Q2 2019. The Maiden Mineral Resource Estimate for Brits is expected before the end of Q2 2019. Table 1 summarises the results for the first 10 boreholes of the second phase of the exploration drilling programme which was completed in Q3 2018.

Table 1: Phase 2 - Assay results and intersections for Brits Vanadium Project Drilling

* Note: BVL011 is the only borehole from the 10 boreholes that intersected both the Intermediate Seam and Lower Seam. The rest of the boreholes were drilled close to the Lower Seam subcrop position, and so only intersected the LS.

** Note: BVL014 was collared in the Lower Seam Massive Magnetite bottom portion hence the high Magnetite grade

1. Note: Depths are intersected depths and do not represent true thicknesses

2. Note: BVL001 to BVL008 which were part of Phase 1 of the Brits Drilling were previously reported in the Bushveld Vanadium Q4 Operational Update.

LS = Lower Seam, IS = Intermediate Seam, US = Upper Seam

The sample analysis results from the 10 boreholes reported above indicate consistency in grade (both in situ and in magnetite concentrate) of the main orebody i.e. the Lower Seam and thickness of that Layer at Brits:

§ The weighted average V2O5 grade for the LS in situ /in whole rock is 0.66%

§ The weighted average V2O5 grade of the LS in magnetite concentrate is 1.66%

§ A geological trend of decreasing grade in vanadium for magnetite-rich orebodies from west to east in the Bushveld Complex accounts for the marginally lower grades on Brits in comparison to the grades at the operating Vametco Mine.

The only intersection of the IS in borehole BVL011 which provides evidence of the availability of this layer on this property which is adjacent to the operating Bushveld Vametco Alloys mine. Its consistency and continuity will be confirmed by the next set of boreholes (BVL018 and BVL020 to BVL026).

The grade in the IS (based on BVL011) is 0.46% V2O5 grade in situ / in whole rock and 1.58% V2O5 in magnetite concentrate. The consistency in grade of the IS will be confirmed with the next set of assay results for boreholes BVL018 and BVL020 to BVL026. The Maiden Mineral Resource Estimate for Brits is expected in Q2 2019.  

The positive results and high grades demonstrate the deposit's ability to be a future source of raw material for the Vametco plant and future brownfield processing plants.

Enquiries: info@bushveldminerals.com

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a low cost, integrated, primary vanadium producer, with ownership of high grade vanadium assets. 

The Company's flagship vanadium platform includes a 74 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; the Mokopane Vanadium Project and the Brits Vanadium Project.

Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owning high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage project developer and component manufacturer. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.

While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.

The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.

The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.

Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com.

About Vametco

Vametco is located near Brits on the Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces NitrovanTM, a trademark product sold in major steel markets across the world. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine (ROM) ore feed to the Vametco plant.

The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.

ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrates are fed into the extraction process which includes the kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide (MVO) in rotary calciners. MVO is fed into the mixplant and finally into the shaft furnaces to produce NitrovanTM.

Competent Person's Statement

In accordance with the "AIM Rules - Note for Mining and Oil and Gas Companies", the information contained within the announcement has been reviewed and approved by Dr Luke Longridge, consulting geologist. Dr Longridge has a PhD in Geology (2012) and over 6 years' experience working on vanadiferous magnetite deposits in the Bushveld Complex. He is a member of the Geological Society of South Africa and is a registered Professional Natural Scientist (Pr Sci.Nat.) in South Africa. Dr Longridge has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). Dr Longridge consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.