Mokopane is located on the central portion of the Northern limb of the Bushveld Complex, which hosts the second-largest vanadium resource in the world. The project is in the Mokopane District of Limpopo Province, approximately 65 kilometres west of the provincial capital, Polokwane. The project includes one of the world’s largest primary vanadium resources, which has a weighted average grade of 1.41% V2O5 in-situ and 1.75% V2O5 in magnetite.
Mokopane will become a primary source of feedstock for Vanchem from its large mineral reserve, and the Vanchem transaction will expedite the development of this project. Other options include supplying ore to other primary or secondary producers worldwide. The long-term plan remains to develop Mokopane into a standalone integrated mine and processing plant, producing 5,300 mtVp.a. of >99% purity V2O5 product.
Geology & Resources
The Mokopane deposit is a layered orebody along a 5.5 kilometre north-south strike, dipping at between 18 and 22 degrees west. The project comprises three adjacent and parallel magnetite layers, namely the MML, the MML-HW layer and the AB Zone. Its 298 Mt (JORC) resources and reserves run across three parallel overlying magnetite layers with grades ranging from 1.6% to over 2% V2O5 as follows:
- MML: 52 Mt @ 1.48% V2O5 (1.6-1.8% V2O5 in magnetite);
- MML-HW & Parting: 233 Mt @ 0.8% V2O5 (1.5-1.6% V2O5 in magnetite); and
- AB Zone: 12 Mt @ 0.7% V2O5 (greater than 2% V2O5 in magnetite).
The Mokopane property has a prospecting right (LP95PR), which incorporates five farms: Vogelstruisfontein 765 LR; Vriesland 781 LR; Vliegekraal 783 LR; Schoonoord 786 LR; and Bellevue 808 LR. The project’s mineral prospecting right covers several minerals including iron ore, vanadium and titanium.
On 29 January 2020, the Department of Mineral Resources and Energy (“DMRE”) in South Africa executed the 30-year mining right in favour of the company’s subsidiary, Pamish Investments No. 39 (Pty) Ltd (“Pamish”) over the five forms. In accordance with Mining Charter III, 5% of the equity in Pamish will be sold by the existing shareholders (Bushveld Minerals and Izingwe Capital Limited) to the Bakenberg Community Trust, a trust established for the benefit of the local communities. This 5% share will be vendor-financed and repaid from future proceeds from the mine. Bushveld Minerals’ interest in the Mokopane Project will accordingly reduce from 64% to 60.8%, while Izingwe’s shareholding will reduce from 36% to 34.2%. Pamish has further committed to allocate an additional 5% to an Employee Share Ownership Scheme once the mine is operational, which will result in Bushveld Minerals ultimately holding 57.6% and Izingwe 32.4%.
A Pre-Feasibility Study (“PFS”) on the Mokopane Vanadium Project was completed and published in January 2016. The PFS was premised on only the MML resource being mined and processed through a primary salt roast and leach process to produce over 99% purity V2O5.
The project economics are attractive as presented in the table below.