Ferro-Alloy Resources Limited Feasibility Study: Drilling Programme Completes (8086I)
December 07 2022 - 2:00AM
UK Regulatory
TIDMFAR
RNS Number : 8086I
Ferro-Alloy Resources Limited
07 December 2022
7 December 2022
Ferro-Alloy Resources Limited
("Ferro-Alloy" or "the Company")
Feasibility Study Update
Completion of Drilling Programme for 2022
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 completion of
drilling for ore body one ("OB1") and the partial completion of
drilling on ore bodies 2, 3 and 4 ("OB2, OB3 and OB4"), following a
total of 19,7 20 metres of drilling undertaken in 2022.
Phase 1 Update
The Company has previously announced a resource and a reserve
estimate for OB1 of 23 million tonnes, sufficient for a mine-life
of more than 20 years for Phase 1 of the project (processing 1
million tonnes of ore per year).
As part of the ongoing bankable feasibility study ("BFS"), and
with the objective of ensuring a high degree of definition of the
OB1 folded deposit, the decision was taken to increase the drilling
meterage on OB1 and the Company provides the following update:
-- OB1 drilling programme now complete;
-- Assaying for OB1 is expected to be completed by the end of December 2022;
-- Updated resource estimate for OB1 expected to be finalised by
SRK Consulting (Kazakhstan) Limited and announced during Q1 2023;
and
-- Ore reserves required to support Phase 1 of the project will
be derived from the revised resource estimates as part of the
BFS.
Phase 2 Update
The drilling programme for OB2, OB3 and OB4, that will support
Phase 2 of the project (an additional 3 million tonnes of ore
processed per year), has been completed so far as possible. There
is an area of difficult topography (not expected to create
difficulties for actual mining) and the Company is currently
assessing the options available to access the undrilled area or
omit it from the BFS if sufficient tonnes of resource and reserve
are assessed from the remaining area.
Nick Bridgen, CEO, commented : " I am very pleased to report the
completion of the drilling programme for OB1, and the drilling
progress made that will support Phase 2. The early results of the
expanded bankable feasibility study are expected to confirm the
potential for Balasausqandiq to become a globally significant
vanadium operation, and I look forward to updating our shareholders
on the results of the exploration and metallurgical programmes in
the New Year."
ENDS
For further information, visit www.ferro-alloy.com or
contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited / William Callewaert
(CFO)
Shore Capital Toby Gibbs/John More
(Joint Corporate Broker) +44 207 408 4090
Liberum Capital Limited Scott Mathieson/William
(Joint Corporate Broker) King +44 20 3100 2000
St Brides Partners
Limited
(Financial PR & IR Catherine Leftley/Ana
Adviser) Ribeiro +44 207 236 1177
About Ferro-Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq
deposit in the Kyzylordinskaya Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq vanadium project (the
"Project"); and
b) an existing vanadium concentrate processing operation (the
"Existing Operation").
Balasausqandiq is a very large deposit, with vanadium as the
principal product together with several by-products. Owing to the
nature of the ore, the capital and operating costs of development
are very much lower than for other vanadium projects.
A reserve on the JORC 2012 basis has been estimated only for the
first ore-body (of five) which amounts to 23 million tonnes, not
including the small amounts of near-surface oxidised material which
is in the Inferred resource category. In the system of reserve
estimation used in Kazakhstan the reserves are estimated to be over
70m tonnes in ore-bodies 1 to 5 but this does not include the full
depth of ore-bodies 2 to 5.
There is an existing concentrate processing operation at the
site of the Balasausqandiq deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then adapted to treat concentrates and expanded. Further
expansion is being undertaken which is expected to result in
annualised production capacity of around 1,500 tonnes of contained
vanadium pentoxide plus significant by-product molybdenum.
The strategy of the Company is to develop both the Project and
the Existing Operation in parallel. Although they are located on
the same site and use some of the same infrastructure, they are
separate operations.
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END
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