TIDMFAR
RNS Number : 6592P
Ferro-Alloy Resources Limited
10 October 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT
FORMS PART OF THE LAWS OF ENGLAND AND WALES BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
10 October 2023
Ferro-Alloy Resources Limited
("Ferro-Alloy" or the "Group" or the "Company")
Existing Operation Q3 Production Results
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer
and developer of the large Balasausqandiq vanadium deposit in
Southern Kazakhstan , announces the production results of the
Group's existing operation for Q3 2023.
Q3 Production Results
2022 2023
Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL
YTD
2022 2022 2022 Q1, Q2 2023 2023 2023
& Q3
------- ------- -------- ------- --------
Tonnes
of concentrate
processed 502.3 644.9 538.4 1,685.6 194.1 1,016.6 314.0 1,524.7
------- ------- ------- --------- ------- -------- ------- --------
Tonnes
of vanadium
pentoxide
produced* 81.1 91.7 69.9 242.7 31.3 141.4 47.3 220.0
------- ------- ------- --------- ------- -------- ------- --------
Tonnes
of molybdenum
produced** 11.3 10.4 11.0 32.7 6.5 14.1 6.4 27.0
------- ------- ------- --------- ------- -------- ------- --------
Tonnes
of nickel
produced*** 25.1 32.2 26.9 84.2 9.7 50.8 15.7 76.2
------- ------- ------- --------- ------- -------- ------- --------
* as ammonium metavanadate
** as ferro-molybdenum
*** as nickel concentrate
Production Update
As previously announced, the default by one of the Company's
major concentrate suppliers has significantly impacted output from
the existing operation throughout the year to date. In response,
the Company has entered into a number of additional contracts with
other concentrate suppliers, but delivery has taken longer than
anticipated with the shortage persisting throughout Q3 and into the
beginning of Q4.
However, concentrates sufficient for nearly four months of
planned production are either now on site or in transit, and the
Company is confident that there will be sufficient concentrates to
allow the resumption of full operations from now on.
Commenting on the production results, Nick Bridgen, CEO of
Ferro-Alloy Resources said:
"In Q2 this year, we experienced our best production quarter to
date, demonstrating the improvements made to our processing factory
in terms of throughput and recovery, including new capacity for
recovering molybdenum and nickel as well as vanadium.
Unfortunately, and as we have already announced, output has been
restricted by defaults by our suppliers in addition to logistics
delays.
"That being said, with the steps that we've taken to increase
the quality and number of concentrate suppliers we deal with, the
deliveries that have been made to site in the last few days and the
pipeline of deliveries already in transit, we are confident that
production will not be affected by any foreseeable supply shortages
this year and beyond."
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited / William Callewaert
(CFO)
Shore Capital Toby Gibbs/Lucy Bowden
(Joint Corporate Broker) +44 207 408 4090
Liberum Capital Limited Scott Mathieson/Kane
(Joint Corporate Broker) Collings +44 20 3100 2000
------------------------ ---------------------
St Brides Partners
Limited
(Financial PR & IR Catherine Leftley/Ana
Adviser) Ribeiro +44 207 236 1177
------------------------ ---------------------
About Ferro-Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq
deposit in Kyzylordinskoye Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq vanadium project (the
"Project"); and
b) an existing vanadium concentrate processing operation (the
"Existing Operation")
Balasausqandiq is a very large deposit, with vanadium as the
principal product together with several by-products. Owing to the
nature of the ore, the capital and operating costs of development
are very much lower than for other vanadium projects.
The most recent mineral resource estimate for ore-body one (of
seven) provided an Indicated Mineral Resource of 32.9 million
tonnes at a mean grade of 0.62% V(2) O(5) equating to 203,364
contained tonnes of vanadium pentoxide ("V(2) O(5) "). In the
system of reserve estimation used in Kazakhstan the reserves are
estimated to be over 70m tonnes in ore-bodies 1 to 5 but this does
not include the full depth of ore-bodies 2 to 5 or the remaining
ore-bodies which remain substantially unexplored.
The Project will be developed in two phases, Phase 1 and Phase
2, treating 1m tonnes per year and an additional 3m tonnes per
year. Production will be some 5,600 tonnes of V(2) O(5) from Phase
1, rising to 22,400 tonnes V(2) O(5) after Phase 2 is
commissioned.
There is an existing concentrate processing operation at the
site of the Balasausqandiq deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then expanded and adapted to recover vanadium, molybdenum and
nickel from purchased concentrates.
The existing operation is located on the same site and uses some
of the same infrastructure as the Project, but is a separate
operation which will continue in parallel with the development and
operation of the Project.
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October 10, 2023 07:53 ET (11:53 GMT)
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