Bushveld Minerals Regulatory News (BMN)

03 June 2014

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Bushveld Iron Ore Project Update

Phosphate Maiden JORC Mineral Resource

Bushveld Minerals Limited (AIM: BMN), a mineral development company focused on iron and tin projects in southern Africa, is pleased to announce a maiden JORC Compliant Mineral Resource for the phosphate mineralisation associated with its P-Q Zone deposit ('the P-Q Deposit") in Limpopo Province, South Africa.

Highlights:

· Maiden JORC Compliant Inferred Mineral Resource of 442 Mt, at an average grade of 3.6% P2O5, using a 3% P2O5 cut-off

· The phosphate Mineral Resource was delineated down to a maximum depth of 400 m for the northern farms (Vliegekraal 783LR and Malokong 784LR), and 300 m for the southern farms (Schoonoord 786LR and Bellevue 808LR)

· The phosphate mineralisation is defined along a total strike of circa 8.5 km and open-ended at depth

· Mineral Resource overlies the 939 Mt P-Q titaniferrous-magnetite Mineral Resource and comprises largely of future strip/waste in the mining of the P-Q Deposit - accordingly, the phosphate resource is expected to have minimal mining costs

· Scoping Study underway and expected to be completed during Q3 2014

Fortune Mojapelo, CEO, commented: 

"We are delighted to announce the maiden JORC resource for the phosphate project of our P-Q Deposit, which is larger and of better grades than we initially anticipated. In the past six months, we have made progress in materially developing the phosphate resource associated with the P-Q Deposit, including the discovery of the phosphate zone, the delineation of the maiden JORC-compliant phosphate resource and the completed positive metallurgical test work on this mineralisation - all of which attest to the potential of this project.

Given the anticipated minimal mining costs of this Mineral Resource (by virtue of being in the hanging wall and thus constituting the overburden of the P-Q Zone), and the recently reported positive metallurgical test work results, this phosphate project has the potential to significantly enhance the economics of the overall P-Q project, the extent to which will be articulated in the phosphate Scoping Study underway."

Phosphate resource evaluation

The Company announced in January and March, 2014, its discovery of consistent phosphate intersections for a zone above the P-Q Deposit's iron ore layer. Significantly, this phosphate zone, while overlying it, is distinct from and does not interfere with the P-Q Deposit mineralisation. This discovery saw phosphate added to the iron, titanium and vanadium already under economic evaluation at the project.

Bushveld followed up its initial discovery with further assaying of drilling results which confirmed the continuity and robustness of the phosphate zone (reported 19 March 2014). The Company also completed more detailed metallurgical testwork (reported 12 February 2014 and 7 May 2014) which confirmed the scope to produce a premium 37.9% P2O5 concentrate with >50% recoveries.

The JORC Mineral Resource is based on the prospecting right 95 PR as amended in terms of Section 102 of the Mineral Resources Development Act of 2002, which covers five farms; Vriesland 781LR, Vliegekraal 783LR, Vogelstruisfontein 765LR, Schoonoord 786LR and Bellevue 808LR, and prospecting right 438 PR which covers the farm Malokong 784LR. The six farms (across both licenses) cover a total area of 11,936.7 ha. The input database for the modelling of the phosphate rich zone consists of drill core from 19 diamond drill holes.

A summary of the tonnage and grade estimates per farm is presented below.

Source: Mineral Resource Statement by the MSA Group, 30 May 2014

In determining the JORC Inferred Mineral Resource the same constraints as those applied to the P-Q Zone VTM Mineral Resource estimate (939 Million tons) were applied: the Mineral Resource was delineated to a vertical depth limited to 400 m below surface in the Northern farms (Vliegekraal 783LR and Malokong 784LR) and 300 m in the Southern farms (Schoonoord 786LR and Bellevue 808LR). Vogelstruisfontein 765LR and Vriesland 781LR were not considered in this estimate as they occur eastwards of the P-Q Zone outcrop.

A geological loss of 10% was applied due to occurrences of dykes, sills, granitic veins and other disruptive geological features, these being more prevalent in the phosphate zone than in the P-Q Zone. Consistent with the P-Q Mineral Resource Estimate, the mineralisation was limited in extent along strike and dip due to the presence of the ridge to the west of the P-Q Zone. Due to the high stripping ratio created by the ridge, it forms a natural barrier in terms of viable extraction in an opencast scenario. A cut-off grade of 3% P2O5 was used to report the mineralisation. The estimated blocks selected above this grade threshold form a cohesive zone of mineralisation.

The Mineral Resource Statement, compiled by The MSA Group, is available in full here:

http://www.rns-pdf.londonstockexchange.com/rns/6511I_-2014-6-2.pdf 

Competent Persons

The scientific and technical information relating to mineral resource estimation contained within this announcement has been reviewed and approved by Mr. Jeremy Witley, a professional geologist with more than 25 years' experience in base and precious metals exploration and mining as well as Mineral Resource evaluation and reporting. He is Principal Resource Consultant for the MSA Group and has the appropriate relevant qualifications, experience, competence and independence to be considered a "Competent Person" under the definitions provided in the JORC Code 2012 Edition.

Contact

For further information on Bushveld please visit http://www.bushveldminerals.com or contact:

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 52.22% interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar.

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