Ferro-Alloy Resources Limited Production of ferro-molybdenum and ferro-vanadium (5226M)
22 Septiembre 2021 - 01:00AM
UK Regulatory
TIDMFAR
RNS Number : 5226M
Ferro-Alloy Resources Limited
22 September 2021
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018
Ferro-Alloy Resources Limited ('FAR' or the 'Company' or the
'Group')
Start of production of ferro-molybdenum and ferro-vanadium
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer
and developer of the large Balasausqandiq vanadium deposit in
Southern Kazakhstan, is pleased to announce it has started
production of ferro-molybdenum and vanadium pentoxide.
In October 2020, the Company started to recover molybdenum in
the form of calcium molybdate as a by-product during the recovery
of vanadium from bought-in raw-material concentrates. Calcium
molybdate was sold at a discount to the published price for the
contained molybdenum. The Company is now converting this calcium
molybdate to ferro-molybdenum which will enable the Company to
avoid the discount.
The Company has also commissioned the equipment to convert
ammonium metavanadate (AMV) into vanadium pentoxide. Formerly, the
AMV was sold at a small discount to the published price of the
contained vanadium pentoxide. Some amounts will continue to be sold
as AMV in order to satisfy existing contracts, but increasing
amounts will be converted to vanadium pentoxide, thus eliminating
the discount for AMV.
The material remaining after extraction of the vanadium and
molybdenum products from the vanadium-bearing concentrates contains
quantities of nickel which the Company has been selling as a
low-grade concentrate. All of this material is now being sold and
there are no remaining tailings or other residues remaining on site
from operations.
The Company is now offering for sale:
-- Ammonium metavanadate (AMV)
-- Vanadium pentoxide
-- Ferro-molybdenum
-- Nickel concentrates
The Company has contracted for delivery of an electric arc
furnace, expected to be commissioned in the first half of 2022.
This will be the last step in the current plans for the existing
processing operation which is expected to bring vanadium production
up to 1,500 tonnes (vanadium pentoxide equivalent) per year, as
well as greatly reducing costs to make ferro-vanadium and enabling
the production of ferro-nickel. The necessary connection of the
plant to a high-voltage powerline and a 1,000 square metre
process-plant extension have already been built in readiness for
this equipment.
Nick Bridgen, CEO, commented : "This low cost,
revenue-generating step completes our current product line-up and
allows us to extract the maximum value of the vanadium and
molybdenum from our raw-materials. Together with our low Kazakhstan
operating costs, this enables us to be amongst the most efficient
producers of vanadium from secondary raw materials
"We look forward to the addition of the electric arc furnace
which will complete our plans for the existing plant, the earnings
from which will contribute to the ongoing development of the main
Balasausqandiq project."
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited
+44 207 408 4090
Shore Capital Jerry Keen/Toby Gibbs
(Corporate Broker) +44 (0)203 005
VSA Capital Andrew Monk/Simon Barton 5000
St Brides Partners
Limited
(Financial PR & IR
Adviser) Catherine Leftley +44 207 236 1177
About Ferro Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq
deposit in Kyzylordinskaya 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.
A reserve on the JORC 2012 basis has been estimated only for the
first ore-body (of five) which amounts to 23 million tonnes, not
including the small amounts of near-surface oxidised material which
is in the Inferred resource category. 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.
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 adapted to treat concentrates and expanded. Further
expansion is being undertaken which is expected to result in
annualised production capacity of around 1,500 tonnes of contained
vanadium pentoxide plus significant by-product molybdenum.
The strategy of the Company is to develop both the Project and
the Existing Operation in parallel. Although they are located on
the same site and use some of the same infrastructure, they are
separate operations.
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