Bushveld Minerals Regulatory News (BMN)

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Bushveld Iron Ore Project

Operational Update -Metallurgical Test Work on the Bushveld Vanadium Project

Bushveld Minerals Limited (AIM: BMN), a mineral development company with a portfolio of vanadium and titanium-bearing iron ore and tin ore assets in Southern Africa, is pleased to provide an update on metallurgical test work at its Vanadium Project in Limpopo Province, South Africa. 

Further to the operations update released 1 September 2014, the Company has completed additional Davis Tube tests (DTT) on two samples from hanging wall units to the Main Magnetite Layer (MML-HW), to assess the grade and recovery of vanadium to a magnetite concentrate. This forms part of test work to determine whether additional MML HW layers could be classified as JORC resources.

Highlights

· Concentrate grades of 1.5 - 1.6% V2O5 (vanadium pentoxide) achieved for two MML HW layers;

· Layers with low in-situ vanadium grades of 0.3-0.7% can still be upgraded to suitable vanadium grades in magnetite concentrates;

· Excellent vanadium recoveries of >90%; and

· Potential for significant increase in Mineral Resource Estimates pending financial evaluation.

DAVIS TUBE TESTS ON THE MML HW LAYERS

On 1 September 2014, Bushveld announced an additional 68.7 Mt of Inferred Mineral Resources within the MML HW, at a cut-off of 25% Fe (iron), with an average grade of 28.8% Fe and 0.75% V2O5. The Company subsequently commissioned SGS Laboratories (Johannesburg) to undertake Davis Tube Tests ("DTT") on two samples from this zone to establish the vanadium grades of magnetite concentrates produced from these samples and the recovery of vanadium to the concentrates. Two samples were selected from borehole VK22, representative of low in-situ grade (0.3-0.6% V2O5) layers. The samples taken are representative of the UMG1 unit (26-27 metre sample) and MAG1 HW GAB unit (63-64 metre sample). These units have tonnage estimates of 130.7 Mt and 25.5 Mt, respectively. The results of the DTT are shown in the table below:

1 Representative of the UMG1 layer;

2 Representative of the MAG1 HW GAB layer

These results demonstrate that MML HW layers with low in-situ vanadium grades of 0.3 - 0.7% V2O5 can be upgraded to concentrates with 1.5 - 1.6% V2O5. Accordingly, on the basis that suitable magnetite concentrates can be extracted from the layers (which include in excess of 156 Mt based on grade and tonnage estimates) these results indicate the potential for a significant increase on the 69 Mt JORC-compliant MML HW resource already defined in the Mineral Resource Estimate for the Project (announced on 1 Sept 2014). A financial evaluation of the viability of these layers as Mineral Resources is underway, pending which the Company will engage with MSA Group to incorporate additional hanging wall layers into the Mineral Resource Estimate.

Fortune Mojapelo, CEO of Bushveld Minerals, said: "These metallurgical results confirm our expectations that suitable vanadium grades and recoveries can be achieved from the hanging wall layers of the MML, and are the first step towards having additional layers declared as Mineral Resources. We will continue with our financial evaluation of these layers, and announce the results in due course. A positive outcome of the financial evaluation would allow us to define up to 156 Mt more resource, in addition to the 69 Mt JORC resource already defined in the hanging wall of the MML. The objective of this effort is to define the value associated with the hanging wall layers of the MML, which are currently considered waste in the recently published Scoping Study for the Bushveld Vanadium Project."

Enquiries: info@bushveldminerals.com

- ENDS -

Notes to the editor

Bushveld Minerals Limited is a mineral development company with a portfolio of vanadium-and titanium bearing iron ore and tin assets in Southern Africa. The Company owns the Bushveld Iron Ore Project and Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling 57.21% interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar.

Bushveld was admitted to the AIM Market of the London Stock Exchange in March 2012.