Mokopane is located on the central portion of the northern limb of the Bushveld Complex. 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, with a weighted average grade of 1.4% V2O5 in-whole rock and 1.75% V2O5 in-magnetite.
On 29 January 2020, the DMRE executed a 30-year mining right in favour of the Company’s subsidiary, Pamish Investments No. 39 (Pty) Ltd (“Pamish”), over 5 farms: Vogelstruisfontein 765 LR; Vriesland 781 LR; Vliegekraal 783 LR; Schoonoord 786 LR; and Bellevue 808 LR. The Mining Right required Pamish to commence mining activities, including in-situ activities associated with the Definitive Feasibility Study (“DFS”) by end of January 2021. The COVID-19 pandemic resulted in a significant delay in the commencement of the DFS and the necessary engagement with local communities required to finalise Land Use arrangements and, consequently, this deadline was not met. Application to the DMRE for an extension of 18 months to commence mining activities has been submitted. Engagement has begun with communities to reach agreement for access to the project areas and secure a Land Use Arrangement.
While the Mokopane mining right is subject to Mining Charter II regulations, the Company is committed to adopting Mining Charter III regulations in respect of host community and employee shareholding requirements. In accordance with Mining Charter III, a free-carried interest of five% of the equity in Pamish will, in due course, be transferred by the existing shareholders (Bushveld Minerals and Izingwe Capital (Pty) Ltd) to the Bakenberg Community Trust, a trust established for the benefit of the local communities. 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 five% to an Employee Share Ownership Participation Scheme once the mine is operational, which will result in Bushveld Minerals ultimately holding 57.6% and Izingwe 32.4%.
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 Main Magnetite Layer (“MML”), the MML-Hanging Wall (“MML-HW”) layer and the AB Zone. Its 298 Mt (JORC) resources and reserves have grades ranging from 1.6% to over 2.0% V2O5 as follows:
The project comprises three adjacent and parallel magnetite layers, namely the Main Magnetite Layer (“MML”), the Main Magnetite Layer-Hanging Wall (“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 2.0% 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 2.0% V2O5 in magnetite).