Slide 1: Corporate Presentation
Corporate Presentation “Unlocking a globally significant Vanadium project 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: Competent Persons Statement
COMPETENT PERSONS STATEMENT The information in this announcement that relates to Exploration Results and other technical information relating to drilling and sampling at the SPD Vanadium complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources a
Slide 4: Table of Contents
Table of Contents 1. Introduction 2. Corporate Overview 3. Scoping Study 4. Next Steps Appendix A: Board & Management Appendix B: Markets Appendix C: Geology Appendix D: Peer Analysis ASX: VR8 4
Slide 5: Section 1: Introduction
Section 1: Introduction ASX: VR8 5
Slide 6: 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). ◆ Contained metal (V) – the mineral resource contains 244 million tonnes of magnetite @ 2.14% V2O5 (in magnetite concentrat
Slide 7: SPD Scoping Study Highlights
INTRODUCTION | SCOPING STUDY SPD Scoping Study Highlights1 ◆ Production – annual production over LOM of 8,518t to 9451t (18.7/Mlb to 20.8Mlb) of +98% V2O5 flake. ◆ Resources – JORC Resource of 662 Mt at 0.77% V2O5 (including 188 Mt at 1.23% V2O5). ◆ Long Mine Life – current mine life of +25 years pr
Slide 8: Section 2: Corporate Overview
Section 2: Corporate Overview ASX: VR8 8
Slide 9: Corporate Overview | VR8
CORPORATE OVERVIEW | VR8 ◆ VR8 has the right to acquire 73.95% of the Project via the acquisition of an interest in Vanadium Resources Pty Ltd Market Capitalisation A$18.0m (“VanRes”), the holder of the Mining Right. Share Price (26 March 2021) A$0.048 ◆ The Company currently own 50%, with final 23.
Slide 10: Focused Management
CORPORATE OVERVIEW | STRATEGY Focused Management FAST TRACK NEXT TO MINE VALUE ADD PARTNERS Fast track of the Create the World’s Pursue all possibilities Begin early Resource ready for next Vanadium mine for value adding from development and development or the able to compete on a concentrate throug
Slide 11: Section 3: Scoping Study
Section 3: Scoping Study ASX: VR8 11
Slide 12: Scoping Study confirms viability of SPD
DEVELOPMENT | SCOPING STUDY Scoping Study confirms viability of SPD ◆ Globally competitive opex and capex metrics. SPD - Scoping Study Outcomes1 ◆ Confirms production of vanadium pentoxide utilising conventional SRL processing methods is technically and EBITDA LoM (US$, pre-tax) 1,756 – 1,900 M fina
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 24
Slide 25: 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 25
Slide 26: 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 27: 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 28: 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 29: Section 4: Next Steps
Section 4: Next Steps ASX: VR8 29
Slide 30: Next Steps
NEXT STEPS | PFS Next Steps ◆ PFS to be completed Q2 2021. ◆ PFS focus will be on optimizing pit shell design and mining schedule in order to front end high grade ore feed and also confirm Capex and Opex values. ◆ Preliminary discussions with potential offtakers and financiers to commence post compl
Slide 31: 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 31
Slide 32: Appendices
Appendices Appendix A: Board & Management Appendix B: Markets Appendix C: Geology Appendix D: Peer Analysis ASX: VR8 32
Slide 33: Appendix A: Board & Management
Appendix A: Board & Management ASX: VR8 33
Slide 34: Experienced Management
EXPERTISE | MANAGEMENT Experienced Management Eugene Nel — Chief Executive Officer Mr Nel has 25 years’ experience as a metallurgical and process engineer in the operations, management, design and optimisation of mineral beneficiation in Africa, South America, Europe and the Middle East. He has been
Slide 35: 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 36: 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 37: Appendix B: Markets
Appendix B: Markets ASX: VR8 37
Slide 38: 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 39: 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 40: 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 41: 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
Slide 42: Appendix C: Geology
Appendix C: Geology ASX: VR8 42
Slide 43: 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 44: 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 45: Appendix D: Peer Analysis
Appendix D: Peer Analysis ASX: VR8 45
Slide 46: Peer Comparison Information
PEER COMPARISON INFORMATION Resource Resource Resource Concentrate Company Code Project Stage Information Source Category Tonnes Grade Grade Measured, 43-101 Technical Report dated 26/10/2017 Indicated Largo LGO.TSX Maracas Production 49.25 0.99 3.10 largoresources.com/operations/maracas-menchen- &
Slide 47: Vanadium Resources Limited | ASX: VR8
contact@VR8.global www.VR8.global AUS: +61 8 6158 9990 RSA: +27 21 794 4004 HK: +852 8175 0228 Australia (Head Office) 108 Outram Street, West Perth, WA 6005 Australia Vanadium Resources Limited | ASX: VR8