Vanadium Resources Ltd. · ASX:VR8
Vanadium Resources — Investor Presentation (March 2021)
35 slides from Vanadium Resources's investor presentation, March 2021
Slide 1: Corporate Presentation
Corporate Presentation “Unlocking one of the world’s largest and highest-grade Vanadium projects for a new era” March 2021 ASX: VR8 1
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Vanadium Resources Limited (the “Company” or “Vanadium Resources”). 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 Comp
Slide 3: Key Points
INTRODUCTION | KEY POINTS Key Points ◆ World Class – one of the world’s largest vanadium deposits. Total JORC Resource of 662 Mt at 0.77% V2O5 (including 188 Mt at 1.23% V2O5). ◆ Long life and high-grade mineable resource – long life open pit mining generates high grade Vanadium concentrate of 1,9-2
Slide 4: World Class JORC Resource
GEOLOGY | JORC RESOURCE World Class JORC Resource ◆ High grade Mineral Resources drilled to a high level of Mineral Resource by Category1 confidence including Measured, Indicated and Inferred Tonnes Whole Rock Category categories. (Mt) V2O5 % ◆ Global Mineral Resource of 662Mt at 0.77% V2O5 Measured
Slide 5: Mineralisation
GEOLOGY | ORE BODY Mineralisation ◆ The SPD Project is located in the Bushveld Complex, one of the most studied geological provinces in the world. ◆ Vanadiferous titanomagnetite layers occur at the same stratigraphic level across the entire complex and can be traced for almost 400 km. ◆ Typically, v
Slide 6: A stand-out amongst all peers
PEER COMPARISON A stand-out amongst all peers The above chart compares Resources reported under different codes and companies at different stages of development as detailed in ASX Announcement titled “Scoping Study Confirms Viability of V2O5 Production”, 23 September 2020 (pages 13-14). Only Resourc
Slide 7: Peer Comparison Information
PEER COMPARISON INFORMATION Resource Resource Resource Concentrate Company Contained Metal Project Stage Information Source Category Tonnes Grade Grade Measured, 43-101 Technical Report dated 26/10/2017 Indicated Largo 487k Maracas Production 49.25 0.99 3.10 largoresources.com/operations/maracas-men
Slide 8: Scoping Study confirms viability of SPD
DEVELOPMENT | SCOPING STUDY Scoping Study confirms viability of SPD ◆ Globally competitive opex and capex metrics. SPD - Scoping Study Outcomes1 ◆ Confirms production of vanadium pentoxide utilising conventional SRL processing methods is technically and EBITDA LoM (US$, pre-tax) 1,756 – 1,900 M fina
Slide 9: Scoping Study Parameters & Assumptions
KEY METRICS | SCOPING STUDY Scoping Study Parameters & Assumptions ◆ Compiled by VR8 with the assistance of highly experienced and reputable independent consultants. Sensitivity to historical V2O5 US$4.50 US$5.50 US$6.00 US$6.95 US$8.60 US$10.0 prices ◆ Completed to an overall +/-35% accuracy. NPV8%
Slide 10: Capex Operating Costs
COSTS | CAPEX & OPERATING COSTS Capex Operating Costs ◆ The pre-production capex is 185.7M including a ◆ The Project has an estimated C1 cash cost (at mine gate) of 15% contingency (as shown below). US$3.07/lb V2O5 (as shown below). ◆ Capex estimate for the process plant was based ◆ Operating costs
Slide 11: Pit Optimisation towards PFS indicates:
PFS | PIT OPTIMISATION Pit Optimisation towards PFS indicates: ◆ High V2O5 grade magnetite can preferentially be mined at the 2020 Scoping Study mine design throughput of 1.6Mtpa without changing any of the Scoping Study assumptions ◆ Significantly increased output of final V2O5 flake product from d
Slide 12: Located in the Bushveld Complex
GEOLOGY | LOCATION Located in the Bushveld Complex ◆ Steelpoortdrift Vanadium Project (“SPD” or “Project”) is part of a geologically unique igneous complex endowed with deposits of PGEs, chromium, vanadium and magnetite. ◆ This world-renowned mining location is host to several mining operations and
Slide 13: Processing Strategy
PROCESSING PROCESSING STRATEGY ◆ Studies (PFS and DFS) towards utilising the conventional salt roast method will continue as the company’s preferred processing methodology. ◆ The processing strategy enables: o Diverse processing options to be considered, thereby possibly replacing existing processin
Slide 14: Processing Strategy flow diagram
PROCESSING PROCESSING STRATEGY REAGENTS Feed Stage 1 Stage 2 Preparation Extraction Extraction CO2 Residue FeV TiAlV Intermediate Hydrogen Reduction Product Intermediate V Product Mg Product V2O5 TiO2 Oxygen Oxygen Oxidation Al2O3 SiO2 Hydrogen Fe Hydrogen Oxygen Fe2O3 Process Product Exothermic ene
Slide 15: Vanadium Resources Limited | ASX: VR8
contact@VR8.global www.VR8.global AUS: +61 8 9420 9300 RSA: +27 21 794 4004 HK: +852 8175 0228 Australia (Head Office) Level 1, 33 Ord Street, West Perth, WA 6005 Australia Vanadium Resources Limited | ASX: VR8
Slide 16: Additional Information
ADDITIONAL INFORMATION ASX: VR8 16
Slide 17: Moving Forward | Timeline
MOVING FORWARD | TIMELINE Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4 TIMELINE Q1 2021 Q2 2021 Q3 2021 Q4 2021 2022 2022 2023 2023 PFS In Progress DFS Planning In Progress Offtake Agreements To be entered into progressively for V2O5 flake product Finance Discussions In Progress Final Investment FID Decision ASX: VR8 17
Slide 18: High Grade Drill Results
GEOLOGY | DRILL RESULTS High Grade Drill Results ◆ Mineral Resource includes 188Mt at 1.23% V2O5 ◆ 18m at 0.80% V2O5 from 0m (VRC017) incl. 4m at from surface. 1.16% V2O5 ◆ High-grade drill results from surface. ◆ 14m at 0.98% V2O5 from 0m / surface (VRC043) ◆ Thick zones of mineralisation, make the
Slide 19: Excellent Oxide Zone Results
GEOLOGY | OXIDE ZONES Excellent Oxide Zone Results ◆ Mineralisation outcrops or subcrops across project, with weathering < 10m. ◆ Amenable to open pit mining with an initial 25-year mine life defined. ◆ Unlike many deposits, weathered mineralisation behaves no differently to fresh mineralisation in
Slide 20: Pit Optimisation Studies & Mine Design
MINING | PIT OPTIMISATION Pit Optimisation Studies & Mine Design ◆ Optimum pit shell #RF2 generated an in-pit Optimum Pit Shell1 Mineral Resource of 53Mt at 0.75% V2O5 (391kt Contained of contained V2O5). Mineralised Waste LoM at Shell ID Strip Ratio Tonnes of Tonnes (Mt) Tonnes (Mt) 1.6Mtpa (yrs) ◆
Slide 21: Conceptual Pit Design & Site Layout
MINING | CONCEPTUAL PIT Conceptual Pit Design & Site Layout ◆ The optimum pit shell #RF2 and conceptual design represent only a small part of the overall total Mineral Resource (as shown below). ◆ This highlights the potential: • for the life of the operation to extend well past the 30-year life of
Slide 22: Concentrate Test Results – Beneficiation
METALLURGY | CONCENTRATE Concentrate Test Results – Beneficiation ◆ Testwork undertaken by SGS and Mintek confirmed that a simple beneficiation process was well suited to the SPD ore body which showed concentrate grades of 2.2% V2O5. ◆ Various phases of concentrate testwork optimised both vanadium c
Slide 23: Concentrate Test Results – Salt Roast Leach
METALLURGY | V2O5 PRODUCTION Concentrate Test Results – Salt Roast Leach ◆ Testwork undertaken by Mintec demonstrated that the SRL method was well suited to the extraction of vanadium from concentrate. ◆ The SLR process was able to successfully produce +98% V2O5 flake from a 2.2% V2O5 concentrate, w
Slide 24: Process Design
PROCESS DESIGN | V2O5 PRODUCTION Process Design ◆ The processing facility will consist of: • a mineral concentrator and associated services and utilities; and • a separate SRL processing plant to produce +98% V2O5 flakes. ◆ Concentrator • METS South Africa (Pty) Ltd (“METS”) designed the concentrato
Slide 25: Infrastructure
INFRASTRUCTURE | SITE SERVICES Infrastructure ◆ Freight • The Project is located near the town of Steelpoortdrift in the Limpopo Province of South Africa and well served with national highways. • Established unsealed roads provide access into and across the Project area and will be upgraded – this w
Slide 26: Regional Infrastructure Advantage
INFRASTRUCTURE | THE REGION Regional Infrastructure Advantage Platinum refinery in Bushveld Complex N of Steelpoort ESKOM sub station, 12km from project De Hoop Dam 15km from project Lion Ferrochrome Smelter (Xstrata) in Steelpoort Steelpoort Rail Siding 30km from project ASX: VR8 26
Slide 27: Existing Port Access
INFRASTRUCTURE | MINE TO MARKET Existing Port Access ◆ Existing and proven transport from the Steelpoortdrift resource. ◆ Road or rail options. Port to… China 20 DAYS ASX: VR8 27
Slide 28: Permitting
PERMITTING | MINING RIGHT APPROVED Permitting ◆ The Project is covered by a granted Mining Right. ◆ The Mining Right remains in force until September 2048. ◆ The Mining Right includes approval of the Environmental Management Plan and Social & Labour Plan for the Project. ◆ Approvals in-place: • Mini
Slide 29: Community Relations Matter
PEOPLE | COMMUNITY RELATIONS Community Relations Matter ◆ Vanadium Resources has maintained a positive relationship with local communities since project inception. ◆ A dedicated local community relations officer has been involved in the project since March 2018. ◆ Recent community meetings reaffirme
Slide 30: Real Mining Experience
EXPERTISE | MINING EXPERIENCE Real Mining Experience South African based directors Nico van der Hoven and Jurie Wessels were responsible for the establishment and development of Bauba Resources Ltd, an active chrome mining company in the Bushveld Complex. ◆ Both have hands-on, local, experience in e
Slide 31: Access to Specialist Skills
EXPERTISE | SPECIALIST CONSULTANTS Access to Specialist Skills Les Ford — Lead Consultant Les has over 40 years of experience constructing, developing and producing vanadium projects and is regarded as one of the world's foremost experts in vanadium. Les began his career at Highveld Steel and Vanadi
Slide 32: Vanadium price in USD/lb
MARKETS | VANADIUM Specific Vanadium Consumption Rates In Steel ◆ Inventories low, additional demand will impact pricing as witnessed during 2018. ◆ Falls from the 2018 high suggest that low pricing will be maintained at higher levels than historical lows and remain commercially strong. Vanadium (V2
Slide 33: Markets | Steel & Alloys
MARKETS | STEEL & ALLOYS ◆ Over 90% of the current demand for vanadium arises from its use to strengthen steel and alloys. ◆ Demand increasing due to more stringent regulations in China for rebar and other steel products used in construction. While implementation has been slower than expected, inspe
Slide 34: Markets | Energy Storage
MARKETS | 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 Da
Slide 35: Markets | Vanadium Supply
MARKETS | VANADIUM SUPPLY Vanadium Production by Raw Material ◆ Over 85% of the world’s vanadium is produced from China, Russia and South Africa. ◆ Chinese domestic production is largely from polluting sources (stone coal) or low-grade resources. ◆ Stringent implementation of Chinese environmental s
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