Market Abuse Regulation ("MAR") Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

4 April 2022

Bushveld Minerals Limited

("Bushveld", the "Company" or the "Group")

Vametco Mineral Resources and Reserves Annual Update

Bushveld Minerals Limited (AIM: BMN), the AIM-listed, integrated primary vanadium producer which owns high-grade vanadium assets in South Africa, is pleased to provide an updated Mineral Resources and Ore Reserves for the Vametco vanadium mine near Brits on the Western Limb of the Bushveld Complex. The resources and reserve estimation was carried out by MSA Group Inc in accordance with the terminology and definitions given in the JORC Code (2012).

Key Highlights

·      The Ore Reserve as at 31 December 2021 is 262,000 tonnes V₂O₅ in magnetite at a grade of 2.02 per cent V₂O₅ (in magnetite) (267,200 tonnes as at 31 December 2020), following mining depletion during the 12 month period.

·      The combined Inferred and Indicated Mineral Resource comprises three Seams - The Lower, Intermediate and Upper Seams - and is reported at 182.7 Mt at an average grade of 1.98 per cent V₂O₅ (in magnetite) as at 31 December 2021, with an average magnetite content of 35.0 per cent (in whole rock) for 703.9 thousand tonnes of contained vanadium (709.8 thousand tonnes as at 31 December 2020).

·      Within this, the Ore Reserve in the Probable Category comprise the same three Seams and is reported as 45.3 Mt at an average grade of 2.02 per cent V₂O₅ (in magnetite), with an average magnetite content of 28.6 per cent (in whole rock) for 146,900 tonnes of vanadium.

·      The Lower Seam is the main ore seam and the thickest, ranging from 13.8 to 52.0 metres in thickness, comprising a Probable Reserve of 38.4 Mt at an average grade of 2.05 per cent V₂O₅ (in magnetite), with an average magnetite content of 29.2 per cent (in whole rock) for 128,900 tonnes of vanadium.

·      The decrease in the total 2021 Mineral Resource, by 0.81 per cent less tonnes than the 31 December 2020 estimate, is attributed to mining of the seams over the last 12 months. No Mineral Resource exploration was carried out over the period.

·      The decrease in the total 2021 Ore Reserves from 46.4 Mt to 45.3 Mt as at 31 December 2021 is due to the depletion of all of the seams over the 12 month period.

·      An adjustment was made to the modifying factors to reflect more accurate Ore Reserve grades for the individual seams. The Ore Reserve modifying factors (mining loss and dilution) were adjusted based on pit to plant reconciliation production data supplied by Bushveld Vametco Alloys (Pty). Ltd. This resulted in a significant increase in the Upper Seam magnetite grade in line with actual performance from 26.8 per cent in 2020 to 49.4 per cent in 2021. 

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented: 

"It is pleasing to see this orebody continue to deliver consistently, as per the reserves and resources estimates it is based upon. This gives us the confidence to pursue further growth in the years ahead, knowing that we have decades of mine life in front of us. It is updates like this that remind us what a unique and world-class asset we possess and that we must ensure it gets developed to its full potential over time."

Notes:

1.       All tabulated data have been rounded and as a result minor computational errors may occur.

2.       Mineral Resources which are not Ore Reserves have no demonstrated economic viability.

3.       Mineral Resources are inclusive of Ore Reserves (not indicated in the table).

4.       Magnetite content (grade) is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.

5.       Due to the magnetite grade being a recovered grade, differences will occur between whole rock V₂O₅ grades back-calculated from concentrate, versus those derived from whole rock assays.

6.       Depleted using 31 December 2021 pit survey.

7.       Reported on a Gross Basis. Bushveld Minerals shareholding in Bushveld Vametco Alloys is 74%.

Notes:

1.       All tabulated data have been rounded and as a result minor computational errors may occur.

2.       Mineral Resources which are not Ore Reserves have no demonstrated economic viability.

3.       Mineral Resources are inclusive of Ore Reserves (not indicated in the table).

4.       Magnetite content (grade) is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.

5.       Due to the magnetite grade being a recovered grade, differences will occur between whole rock V₂O₅ grades back-calculated from concentrate, versus those derived from whole rock assays.

6.       Depleted using 31 December 2021 pit survey.

7.       Reported on an Attributable Basis. Bushveld Minerals shareholding in Bushveld Vametco Alloys is 74%.

Notes:

1.       All tabulated data have been rounded and as a result minor computational errors may occur.

2.       Ore Reserve tonnes and grades reported on dry run of mine (ROM) (plant feed) basis after mining modifying factors have been applied but before beneficiation down-stream recoveries/losses have been applied.

3.       Reporting was prepared on a Mineral Resource model developed by MSA.

4.       Ore Reserves depleted as at 31 December 2021 using 31 December 2021 pit survey.

5.       The Ore Reserve estimate was based on the original pit design completed in March 2019

6.       Modifying factors adjusted by seam from previous previous 31 December 2020 Ore Reserve estimate based on analysis of pit to plant production information

7.       Ore Reserve estimate depleted using Datamine Studio 5DP Open Pit software and latest topography supplied by Vametco as of 31 December 2021.

8.       Reported on a Gross Basis. Bushveld Minerals shareholding in Bushveld Vametco Alloys is 74%.

Notes:

1.       All tabulated data have been rounded and as a result minor computational errors may occur.

2.       Ore Reserve tonnes and grades reported on dry ROM (plant feed) basis after mining modifying factors have been applied but before beneficiation down-stream recoveries/losses have been applied.

3.       Reporting was prepared on a Mineral Resource model developed by MSA.

4.       Ore Reserves depleted as at 31 December 2021 using 31 December 2021 pit survey.

5.       The Ore Reserve estimate was based on the original pit design completed in March 2019

6.       Modifying factors adjusted by seam from previous previous 31 December 2020 Ore Reserve estimate based on analysis of pit to plant production information

7.       Ore Reserve estimate depleted using Datamine Studio 5DP Open Pit software and latest topography supplied by Vametco as of 31 December 2021.

8.       Reported on a Gross Basis. Bushveld Minerals shareholding in Bushveld Vametco Alloys is 74%.

Competent Person's Statement

In accordance with the "AIM Rules - Note for Mining and Oil and Gas Companies", the information contained within the announcement has been reviewed and approved by Professor Richard Viljoen. Professor Richard Viljoen has more than 30 years' experience in the mining industry, including 15 years as chief consulting geologist for Gold Fields of South Africa. Notable past experience includes the development of significant mines including Northam Platinum and the Leeudoorn and Tarkwa gold mines, identifying and developing a significant platinum deposit in the Bushveld Complex for Akanani Resources as well as acting as consultant for exploration and mining companies in Canada, Mexico, Venezuela, India and China in the fields of base metals, gold and platinum. Professor Richard Viljoen has extensive experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). Professor Richard Viljoen consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

ENDS 

ABOUT BUSHVELD MINERALS LIMITED 

Bushveld Minerals is a low-cost, vertically integrated primary vanadium producer. It is one of only three operating primary vanadium producers, owning 2 of the world's 4 operating primary vanadium processing facilities. In 2021, the Company produced 3,592 mtV, representing approximately three per cent of the global vanadium market. With a diversified vanadium product portfolio serving the needs of the steel, energy and chemical sectors, the Company participates in the entire vanadium value chain through its two main pillars: Bushveld Vanadium, which mines and processes vanadium ore; and Bushveld Energy, an energy storage solutions provider. Bushveld Vanadium is targeting to materially grow its vanadium production and achieve an annualised steady state production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a by the end of 2022, from projects currently being implemented. Beyond that, pre-feasibility studies are in progress to determine the optimal path to increase production even further to a steady state production run rate of between 6,400 mtVp.a. and 6,800 mtVp.a. in the medium-term and to a steady state production run rate of 8,400 mtVp.a in the long term. 

Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through the advancement of vanadium-based energy storage systems, specifically Vanadium Redox Flow Batteries ("VRFBs"). 

Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com  

About Vametco

Vametco is located near Brits on the Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces mostly Nitrovan, a trademark product sold in major steel markets across the world. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine ("ROM") ore feed to the Vametco plant.

The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.

ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrates are fed into the extraction process which includes the kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide ("MVO") in rotary calciners. MVO is fed into the mix plant and finally into the shaft furnaces to produce Nitrovan. 

About Vanchem

Vanchem is situated at Ferrobank Industrial Park in Emalahleni Local Municipality, Mpumalanga Province in the Republic of South Africa. Vanchem is a primary vanadium producing facility with a beneficiation plant capable of producing various vanadium oxides, ferrovanadium and vanadium chemicals. Vanchem uses the salt roast beneficiation process, similar to the one used at Vametco. The plant comprises: a core salt-roast processing plant, including 3 roasting kilns, an electric smelting ferrovanadium converter, an alumino-thermic smelting facility, also located at Highveld, a vanadium chemical plant; and a rail siding linking the plant with Bushveld deposits and additional potential supply sources through the national rail network.

ABOUT BUSHVELD ENERGY LIMITED 

Bushveld Energy is a leading energy storage solutions provider, focusing on the African market. Bushveld Energy recognises that the requirement for electricity in Africa touches on both the paramount potential for social transformation and an immense commercial opportunity. 

Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries ("VRFB"). Its near-term strategy is to deploy several VRFB systems as part of its longer-term vision to become a significant electricity storage provider in Africa, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium. Bushveld Energy's business model embraces a number of activities along the VRFB value chain, including electrolyte manufacturing, investment in VRFB manufacturing, battery deployment and project development.  

http://www.bushveldenergy.com 

Glossary of Technical Terms