Vanadium Resources Ltd. · ASX:VR8
Vanadium Resources — Tando Resources — Indaba 2019
29 slides from Vanadium Resources's conference presentation, February 2019
Slide 1: SPD Vanadium Project
o SPD VANADIUM PROJECT Feb 2019 Indaba / 121 Presentation ASX:
Slide 2: Developing a Globally Significant Vanadium Project
DEVELOPING A GLOBALLY SIGNIFICANT VANADIUM PROJECT ▪ The SPD Project is one of the world’s highest grade vanadium deposits ▪ High-grade maiden JORC Resource of 588Mt at 0.78% V2O5 (whole rock / unprocessed) meaning potential for long life operation ▪ Resource includes extremely high-grade surface co
Slide 3: Corporate Overview
CORPORATE OVERVIEW TNO Price Chart Capital Structure Current Shares 193,587,086 Listed Options 52,237,043 Unlisted Options 23,100,000 Vendor Options 41,580,001 Mkt Cap at 12c ~$23,000,000 Cash at Bank ~$2,000,000 ▪ Tando has the right to earn 73.95% of the SPD Project ▪ Staged acquisition via projec
Slide 4: Globally Significant Project
GLOBALLY SIGNIFICANT PROJECT SPD has one of the highest: ▪ whole rock / pre-concentrate grades ▪ grade in concentrate Chart compares resources reported under different codes and companies at different stages of development as detailed in slide 29. 4
Slide 5: Aggressive Development Strategy
AGGRESSIVE DEVELOPMENT STRATEGY ▪ Over 6,000m of drilling from September 2018 (51 RC holes and 32 DD holes) ▪ Maiden Inferred Mineral Resource estimated in December 2018 ▪ Phase 2 Results to be used to update and upgrade Mineral Resource during Q1 2019 ▪ Engineering and metallurgical studies progres
Slide 6: Simple Geological Setting
SIMPLE GEOLOGICAL SETTING ▪ Three magnetite units averaging approximately 20m thick ▪ Upper Magnetite Layer (UML) ▪ Intermediate Magnetite Layer (IML) ▪ Lower Magnetite Layer (LML) ▪ Both units outcrop in project area ▪ Both massive (high grade) and disseminated mineralisation present ▪ Located at b
Slide 7: High Grade Drill Results
HIGH GRADE DRILL RESULTS ▪ 20m at 1.20% V2O5 from 86m includes 7m at 1.48% V2O5 (VRC038) ▪ 12m at 1.08% V2O5 from 79m (VRC043) incl. 5m at 1.29% V2O5 from 86m ▪ 11m at 1.07% V2O5 from 59m (VRC042) incl. 3m at 1.55% V2O5 from 67m ▪ 12m at 1.00% V2O5 from 46m (VRC014) incl. 9m at 1.13% V2O5 from 49m i
Slide 8: Mineralisation at Surface
MINERALISATION AT SURFACE ▪ Mineral Resource includes 87Mt at 1.07% V2O5 from ▪ 18m at 0.80% V2O5 from 0m (VRC017) incl. 4m at 1.16% V2O5 surface to 100m depth ▪ 14m at 0.98% V2O5 from 0m / surface (VRC043) ▪ 34m at 1.03%V2O5 from 22m (VDD001) ▪ Consistent high grade drill results from surface (RHS)
Slide 9: Massive Maiden JORC Resource
MASSIVE MAIDEN JORC RESOURCE ▪ Global SPD Mineral Resource of 588Mt at a whole rock / unprocessed grade of 0.78% V2O5 ▪ Entire Mineral Resource classified as Inferred, infill drilling completed aimed at upgrading classification ▪ Significant increase in size of Resource and improved delineation of h
Slide 10: Outstanding Concentrate Results
OUTSTANDING CONCENTRATE RESULTS Assays of magnetic concentrate return: ▪ 7m at 2.17% V2O5 from 3m (VRC001) Mass recovery 36%, whole rock 0.84% V2O5 ▪ Excellent mass recovery across ▪ 35m at 2.11% V2O5 from 47m (VRC001) mineralised intervals, increasing to Mass recovery 28%, whole rock 0.66% V2O5 +40
Slide 11: Near Term Production Potential
NEAR TERM PRODUCTION POTENTIAL ▪ Investigating rapid, low CAPEX production start up ▪ Takes advantage of high grade nature of resource along with pipes ▪ 2% V2O5 concentrate can be produced using simple beneficiation processes Crush & Screen Magnetic Separation Source: Mets ZA (Pty) Ltd Source: Mult
Slide 12: Fast Tracking Near Term Production Opportunity
FAST TRACKING NEAR TERM PRODUCTION OPPPORTUNITY 2019 Q1 Q2 Q3 Q4 Complete Scoping Secure offtake agreements Construction & first Study & development funding production 2020 2021 Complete PFS into downstream processing of Complete DFS into downstream processing option global resources obtain project
Slide 13: High Grade Vanadium Pipes
HIGH GRADE VANADIUM PIPES ▪ 6 clusters of pipes have been mapped and sampled on the SPD Project ▪ Average of 20 samples = 1.87% V2O5 ▪ 7 samples above 2% V2O5 ▪ High resolution magnetic survey delineates scale: ▪ Cluster 5 600m x 600m ▪ New target 400m x 400m ▪ Drill testing in progress Refer ASX An
Slide 14: Established Production Hub
ESTABLISHED PRODUCTION HUB ▪ Active vanadium mining and processing operations: ▪ Rhovan (Glencore) ▪ Vametco (Bushveld) ▪ SPD Project adjacent to dormant Mapochs vanadium operation (formerly Evraz, now private) Mapochs Mine 14
Slide 15: Infrastructure Rich Region
INFRASTRUCTURE RICH REGION Electricity sub station 15km from SPD De Hoop Dam, 15km from SPD Steelpoort Rail Siding, 25km from SPD 15
Slide 16: South Africa
SOUTH AFRICA ▪ Current government actively seeking investment in South Africa, with mining a sector of interest ▪ New Mining Charter announced in September 2018 aimed to address industry concerns while continuing to promote stakeholder interests ▪ Provides greater certainty and clarity for investmen
Slide 17: Vanadium Market / Price
VANADIUM MARKET / PRICE Vanadium (V2O5) Price Chart ▪ Vanadium prices have stabilised above US$15/lb after surge during 2018 ▪ Prices in uptrend since Jan 2016 ▪ For the first time vanadium price has decoupled from iron ore price as a result of : Source: TTP Squared ▪ Changes in vanadium content of
Slide 18: Demand from Steel
DEMAND FROM STEEL Specific Vanadium Consumption Rates ▪ Over 90% of the current demand for vanadium arises from its use to strengthen steel. ▪ Demand increasing due to more stringent regulations in China for rebar and other steel products used in construction. ▪ New Chinese standards forecast to inc
Slide 19: Vanadium Supply
VANADIUM SUPPLY Vanadium Production by Raw Material ▪ Over 85% of the worlds vanadium is produced from China, Russia and South Africa ▪ Production from primary sources (i.e. new mines such as SPD) increasing due to environmental issues with production from stone coal and slag ▪ Primary deposit types
Slide 20: Demand from Energy Storage
DEMAND FROM ENERGY STORAGE ▪ Energy storage is key factor in global change to renewable energy Vanadium Redox Flow Batteries ▪ “the wind doesn’t always blow, the sun doesn’t always shine” ▪ “you might have an electronic vehicle but you’ll be charging it from a coal fired power station” ▪ VRFBs have
Slide 21: VRFBs and Energy Storage
VRFBs AND ENERGY STORAGE ▪ Forecasters expect over 1,200GW of battery capacity to be added between today and 2050, with approx 600GW before 2025 1 ▪ VRFBs forecast to represent between 15 and 25 % of battery capacity ▪ Could add up to 10,000mtV of demand into an already undersupplied market 2 Source
Slide 22: Peer Comparison
PEER COMPARISON Chart compares resources reported under different codes and companies at different stages of development as detailed in slide 29. 22
Slide 23: Management Team
MANAGEMENT TEAM Bill Oliver ▪ Geologist with over 20 years wide ranging exploration experience in a Managing Director range of commodities and jurisdictions. ▪ Enviable track record in project identification and evaluation. Jeremy King ▪ Corporate advisor with over 15 years’ experience in domestic a
Slide 24: Tando Resources (ASX: TNO)
Tando Resources (ASX: TNO) W: www.tandoresources.com.au E: contact@tandoresources.com.au T: +61 8 6559 1792 A: Suite 2 / 1 Altona St, West Perth, WA 24
Slide 25: Disclaimer
DISCLAIMER ▪ This presentation has been prepared by Tando Resources Limited (“the Company” or “Tando”). The information contained in this presentation is a professional opinion only and is given in good faith. ▪ The information contained herein is confidential and proprietary to the Company and is p
Slide 26: Competent Person Statement
COMPETENT PERSON STATEMENT ▪ The information in this announcement that relates to Exploration Results and other technical information relating to drilling, sampling and the geological interpretation derived from the Exploration Results complies with the 2012 Edition of the Australasian Code for Repo
Slide 27: Appendix 1: Mineral Resource
APPENDIX 1: MINERAL RESOURCE Global Mineral Resource - Inferred Tonnes Whole Rock • Global Mineral Resource is quoted above Layer SG (Mt) V2 O 5 % a 0.45% V2O5 cut-off to 200m depth and Upper Layer 3.5 211 0.84 classified as Inferred Intermediate Layer 3.1 188 0.55 Lower Layer (disseminated) 3.5 137
Slide 28: Appendix 2: Terms of Acquisition
APPENDIX 2: TERMS OF ACQUISITION Further shares to be issued to enable Tando to earn up to 73.95% of the SPD Project. On delineation of a Measured Resources 28.528M shares On completion of a Scoping Study 19.635M shares On successful completion of a Pre-Feasibility Study 4.460M shares & 32.340M opti
Slide 29: Appendix 3: Peer Comparison Information
APPENDIX 3: PEER COMPARISON INFORMATION Company Code Project Stage Resource Category Resource Resource Concentrat Information Source Tonnes Grade e Grade Largo LGO.TSX Maracas Production Measured, Indicated & 49.25 0.99 3.10 43-101 Technical Report dated Inferred (43-101) 26/10/2017 largoresources.c