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DJ Bushveld Minerals Limited Brits Vanadium Maiden Resource - Replacement

TIDMBMN

RNS Number : 6079F

Bushveld Minerals Limited

16 July 2019

The following amendments have been made to the 'Brits Vanadium Maiden Mineral Resource' announcement released on 21 June 2019 at 07:00 under RNS No. 9579C.

The net attributable figures in Table 2 (as disclosed in note 5) incorrectly stated, and were calculated on, a 74 per cent ownership interest (given a similar holding in the Company's neighbouring Vametco operation) as opposed to Bushveld's 62.5 per cent. ownership interest in the Brits Vanadium Project.

The Indicated Resource in Million Tonnes (MT), Thousand Tonnes Vanadium Pentoxide (V(2) O(5) ) in magnetite and Thousand Tonnes Vanadium (V) in magnetite were incorrectly stated as 33.2 MT, 152.7 Thousand Tonnes V(2) O(5) in magnetite and 85.5 Thousand Tonnes V in magnetite respectively as opposed to 28.0 MT, 129.0 Thousand Tonnes V(2) O(5) in magnetite and 72.2 Thousand Tonnes V in magnetite.

The Inferred Resource in Million Tonnes (MT), Thousand Tonnes V(2) O(5) in magnetite and Thousand Tonnes V in magnetite were incorrectly stated as 16.2 MT, 79.1 Thousand Tonnes V(2) O(5) in magnetite and 44.3 Thousand Tonnes V in magnetite respectively as opposed to 13.7 MT, 66.8 Thousand Tonnes V(2) O(5) in magnetite and 37.4 Thousand Tonnes V in magnetite.

The Total Indicated and Inferred Resource in Million Tonnes (MT), Thousand Tonnes V(2) O(5) in magnetite and Thousand Tonnes V in magnetite were stated as incorrectly 49.4 MT, 231.8 Thousand Tonnes V(2) O(5) in magnetite and 129.8 Thousand Tonnes V in magnetite respectively as opposed to 41.8 MT, 195.8 Thousand Tonnes V(2) O(5) in magnetite and 109.7 Thousand Tonnes V in magnetite.

Corresponding figures by Seam (Upper, Intermediate and Lower) are also reduced by an equivalent proportion.

The gross (100%) figures (actual tonnes and vanadium in the ground) are unaffected.

All other details remain unchanged.

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.

16 July 2019

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Brits Vanadium Maiden Mineral Resource

Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, is pleased to provide a maiden Mineral Resource estimate for the Brits Vanadium Project (the "Brits Project"). The Brits Project is located on Portion 3 of the farm Uitvalgrond 431 JQ, near the town of Brits in the North West Province of South Africa and is directly along strike from the Bushveld Vametco Alloys Mine (Bushveld-Vametco). The maiden Mineral Resource incorporates data from the 2018 drilling campaign comprising 26 drill holes over a total of 2,967m of diamond drilling.

The Mineral Resource is reported in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is classified into the Indicated and Inferred Categories in Table 1 below.

Key Highlights

-- The aggregate Inferred and Indicated Mineral Resource distributed across the three seams (the Lower, Intermediate, and Upper Seams) is reported as 66.8Mt at an average grade of 1.58 per cent V(2) O(5) in magnetite, at a cut-off grade of 20 per cent magnetite in whole rock for 175,400 tonnes of contained vanadium.

-- The Indicated Mineral Resource tonnages account for 67 per cent of the total combined Mineral Resource and stand at 44.9Mt with an average grade of 1.59 per cent V(2) O(5) in magnetite for 115,600 tonnes of contained vanadium across the three seams.

-- The Lower Seam represents a major portion of the total combined Mineral Resource tonnages at the cut-off grade of 20 per cent, with 55.5 Mt at an average grade of 1.58 per cent V(2) O(5) in magnetite for 137,000 tonnes of contained vanadium. This represents approximately 83 per cent of the total combined tonnage of the maiden Mineral Resource.

-- Within the combined Mineral Resource, the Intermediate Seam has the highest grade of the three seams at 1.76 per cent V(2) O(5) in magnetite though the tonnages are low at the current cut-off grade of 20 per cent magnetite in whole rock.

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

-- The Mineral Resource is reported up to a depth of 150m below surface and based on the drilling on the western and central blocks of the farm Uitvalgrond Portion 3 which extends over a strike length of approximately 1.65km to the most eastern fault where the last line of drilling was completed. As such there is potential to increase the resource on the remaining eastern unexplored portion of the farm on a strike length of 1km.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"We are pleased to be able to report solid results confirming that we have a high-quality asset at the Brits Project, where its average grade of 1.58% V(2) O(5) in magnetite is among the highest in the world.

"This represents an important step in the development of Brits - as we recently detailed our path to producing over 8,400 mtV per annum and Brits provides the optionality for additional ore feed for the Vametco plant and, if required, concentrate feed for the Vanchem plant."

 
                                                        Table 1 
               Brits Vanadium Mineral Resource at a cut-off grade of 20% magnetite, 18 June 2019 - Gross 
                                                         Basis 
     Class         Seam Name       Tonnes      V(2) O(5)     Magnetite     V(2) O(5)     Tonnes V(2)     Tonnes V in 
                                               grade of      grade of       grade of       O(5) in        magnetite 
                                              whole rock    whole rock     magnetite      magnetite 
                -------------- 
                                 (Millions)        %             %             %         (Thousands)     (Thousands) 
                --------------  -----------  ------------  ------------  -------------  -------------  --------------- 
   Indicated         Upper              2.0      0.66          43.64              1.51           13.4              7.5 
          Intermediate                  1.9      0.47          21.52              1.75            7.0              3.9 
             Lower                     41.0      0.56          28.54              1.59          185.9            104.2 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
             Total                     44.9      0.56          28.94              1.59          206.3            115.6 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
   Inferred          Upper              7.1      0.65          43.89              1.50           46.7             26.2 
          Intermediate                  0.4      0.44          21.13              1.85            1.4              0.8 
             Lower                     14.5      0.50          26.09              1.55           58.8             32.9 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
             Total                     22.0      0.55          31.78              1.54          106.9             59.9 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
 Indicated and 
    Inferred         Upper              9.2      0.65          43.84              1.50           60.1             33.7 
          Intermediate                  2.2      0.46          21.46              1.76            8.4              4.7 
             Lower                     55.5      0.54          27.90              1.58          244.6            137.0 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
             Total                     66.8      0.56          29.87              1.58          313.2            175.4 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
 

Notes:

   1.      All tabulated data have been rounded and as a result minor computational errors may occur. 
   2.      Mineral Resources which are not Ore Reserves have no demonstrated economic viability. 

3. Magnetite grade is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.

4. Due to the magnetite grade being a recovered grade, differences will occur between whole rock V(2) O(5) grades back calculated from concentrate, versus those derived from whole rock assays.

   5.      The Mineral Resource is reported as 100% of the Mineral Resource for the project. 
   6.      Bushveld Minerals is the operator of Brits Vanadium Project. 
 
                                                        Table 2 
          Brits Vanadium Mineral Resource at a cut-off grade of 20% magnetite, 18 June 2019 - Net Attributable 
                                                         Basis 
     Class         Seam Name       Tonnes      V(2) O(5)     Magnetite     V(2) O(5)     Tonnes V(2)     Tonnes V in 
                                               grade of      grade of       grade of       O(5) in        magnetite 
                                              whole rock    whole rock     magnetite      magnetite 
                -------------- 
                                 (Millions)        %             %             %         (Thousands)     (Thousands) 

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DJ Bushveld Minerals Limited Brits Vanadium Maiden -2-

                --------------  -----------  ------------  ------------  -------------  -------------  --------------- 
   Indicated         Upper              1.3      0.66          43.64              1.51            8.4              4.7 
          Intermediate                  1.2      0.47          21.52              1.75            4.4              2.4 
             Lower                     25.6      0.56          28.54              1.59          116.2             65.1 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
             Total                     28.0      0.56          28.94              1.59          129.0             72.2 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
   Inferred          Upper              4.4      0.65          43.89              1.50           29.2             16.3 
          Intermediate                  0.2      0.44          21.13              1.85            0.9              0.5 
             Lower                      9.1      0.50          26.09              1.55           36.7             20.6 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
             Total                     13.7      0.55          31.78              1.54           66.8             37.4 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
 Indicated and 
    Inferred         Upper              5.7      0.65          43.84              1.50           37.6             21.0 
          Intermediate                  1.4      0.46          21.46              1.76            5.2              2.9 
             Lower                     34.7      0.54          27.90              1.58          152.9             85.6 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
             Total                     41.8      0.56          29.87              1.58          195.8            109.7 
 -----------------------------  -----------  ------------  ------------  -------------  -------------  --------------- 
 

Notes:

   1.     All tabulated data have been rounded and as a result minor computational errors may occur. 
   2.     Mineral Resources which are not Ore Reserves have no demonstrated economic viability. 

3. Magnetite grade is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.

4. Due to the magnetite grade being a recovered grade, differences will occur between whole rock V(2) O(5) grades back calculated from concentrate, versus those derived from whole rock assays.

5. The Mineral Resource is reported on a net attributable (being 62.5% of the Mineral Resource for the project).

   6.     Bushveld Minerals is the operator of Brits Vanadium Project. 

Enquiries: info@bushveldminerals.com

 
Bushveld Minerals                                                 +27 (0) 11 268 6555 
Fortune Mojapelo, Chief Executive 
 Officer 
Chika Edeh, Head of Investor 
 Relations 
 
SP Angel Corporate Finance 
 LLP                                Nominated Adviser & Broker    +44 (0) 20 3470 0470 
Ewan Leggat / Richard Morrison 
Jonathan Williams / Richard 
 Parlons 
 
Alternative Resource Capital        Joint Broker 
Rob Collins                                                       +44 (0) 207 186 9001 
Alex Wood                                                         +44 (0) 207 186 9004 
 
BMO Capital Markets Limited         Joint Broker                  +44 (0) 20 7236 1010 
Jeffrey Couch / Tom Rider 
 Michael Rechsteiner / Neil 
 Elliot 
 
Tavistock                           Financial PR 
Charles Vivian / Gareth Tredway                                   +44 (0) 207 920 3150 
 
Brunswick                           Financial PR (South Africa) 
Miyelani Shikwambana                                              +27 (0) 11 502 7300 
 

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 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.

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 Professor Richard Viljoen. Professor Richard Viljoen has more than 30 years' experience in the mining industry, including 15 years as chief consulting geologist for Gold Fields of South Africa. Notable past experience includes the development of significant mines including Northam Platinum and the Leeudoorn and Tarkwa gold mines, identifying and developing a significant platinum deposit in the Bushveld Complex for Akanani Resources as well as acting as consultant for exploration and mining companies in Canada, Mexico, Venezuela, India and China in the fields of base metals, gold and platinum. Professor Richard Viljoen has extensive 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). Professor Richard Viljoen consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Glossary of Technical Terms

 
              Cut-off grade                              The lowest grade, or quality, 
                                                          of mineralised material that 
                                                          qualifies as economically mineable 
                                                          and available in a given deposit. 
                                                          May be defined on the basis 
                                                          of economic evaluation, or 
                                                          on physical or chemical attributes 
                                                          that define an acceptable product 
                                                          specification. 
              Indicated Mineral Resources                Indicated Mineral Resource 
               or Indicated Resources                     or Indicated Resource is that 
                                                          part of a Mineral Resource 
                                                          for which quantity, grade or 
                                                          quality, densities, shape and 
                                                          physical characteristics, can 
                                                          be estimated with a level of 
                                                          confidence sufficient to allow 
                                                          the appropriate application 
                                                          of technical and economic parameters, 
                                                          to support mine planning and 
                                                          evaluation of the economic 
                                                          viability of the deposit. The 
                                                          estimate is based on detailed 
                                                          and reliable exploration and 
                                                          testing information gathered 
                                                          through appropriate techniques 
                                                          from locations such as outcrops, 
                                                          trenches, pits, workings and 
                                                          drill holes that are spaced 
                                                          closely enough for geological 
                                                          and grade continuity to be 
                                                          reasonably assumed 
                                           ---------------------------------------------------- 
              Inferred Mineral Resources                 An Inferred Mineral Resource 
               or Inferred Resources                      or Inferred Resource is that 

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DJ Bushveld Minerals Limited Brits Vanadium Maiden -3-

                                                          part of a Mineral Resource 
                                                          for which quantity and grade 
                                                          (or quality) are estimated 
                                                          on the basis of limited geological 
                                                          evidence and sampling. Geological 
                                                          evidence is sufficient to imply 
                                                          but not verify geological and 
                                                          grade (or quality) continuity. 
                                                          It is based on exploration, 
                                                          sampling and testing information 
                                                          gathered through appropriate 
                                                          techniques from locations such 
                                                          as outcrops, trenches, pits, 
                                                          workings and drill holes. 
                                           ---------------------------------------------------- 
              Magnetite                                  Naturally occurring form of 
                                                          iron ore with the formula Fe(3) 
                                                          O(4) . 
                                           ---------------------------------------------------- 
              Mt                                         Millions of tonnes 
                                           ---------------------------------------------------- 
              mt or mtV                                  Metric tonne or Metric tonne 
                                                          of Vanadium 
                                           ---------------------------------------------------- 
              Ore or Mineral Reserve                     Ore or Mineral Reserves are 
                                                          sub-divided into two categories. 
                                                          The "Proved" category - the 
                                                          highest level of Reserves or 
                                                          the level with the most confidence 
                                                          and the "Probable" category 
                                                          - the lower level of confidence 
                                                          of the Reserves. 
                                                          Mineral Reserves are distinguished 
                                                          from Mineral Resources as all 
                                                          the technical and economic 
                                                          parameters have been applied 
                                                          and the estimated grade and 
                                                          tonnage of the Mineral Reserves 
                                                          should closely approximate 
                                                          the actual results of mining. 
                                                          The guidelines state: "Mineral 
                                                          Reserves are inclusive of the 
                                                          diluting material that will 
                                                          be mined in conjunction with 
                                                          the Mineral Reserve and delivered 
                                                          to the treatment plant or equivalent 
                                                          facility. "The guidelines also 
                                                          state that: 
                                                          "The term 'Mineral Reserve' 
                                                          need not necessarily signify 
                                                          that extraction facilities 
                                                          are in place or operative or 
                                                          that all government approvals 
                                                          have been received. It does 
                                                          signify that there are reasonable 
                                                          expectations of such approvals." 
                                           ---------------------------------------------------- 
              Seam                                       A bed or a distinct layer of 
                                                          vein of rock in other layers 
                                                          of rock 
                                           ---------------------------------------------------- 
              Vanadium (V)                               Vanadium is a chemical element 
                                                          with the symbol V and atomic 
                                                          number 23. 
                                           ---------------------------------------------------- 
              Vanadium Oxide (V(2) O(5) )                Vanadium(V) oxide is the inorganic 
                                                          compound with the formula V(2) 
                                                          O(5) . 
                                           ---------------------------------------------------- 
 

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