Tando Resources has completed its acquisition of the SPD vanadium project in South Africa.
The junior miner can acquire up to 73.95 per cent of the project from Vanadium Resources, should it establish a JORC-compliant measured resource and complete its scoping, pre-feasibility (PFS) and definitive feasibility studies (DFS).
Tando said that it was well advanced in establishing SPD’s JORC resource, with the company’s maiden drilling program now under way. Its first holes have intersected mineralised units.
It has also mobilised another diamond core rig, giving it three rigs drilling SPD’s high grade foreign resource of 513 million tonnes (Mt) at 0.78 per cent vanadium pentoxide.
The high-grade vanadium pipes surrounding the SPD deposit will commence drilling in mid-October. Samples taken in May at the SPD vanadium project returned high-grade potential.
Company managing director Bill Oliver said the company was on track with its strategy plan.
“We are delighted with the rapid progress we are making on the ground. With the vanadium price trebling in the past 18 months, we see an opportunity to create substantial value for shareholders,” he said.
SPD is in a similar geological setting to the existing vanadium processing operations of Rhovan (Glencore) and Vametco (Bushveld Minerals) in the Gauteng region.
BEE entities and community trust Steelpoort Development Trust hold the remaining 26 per cent of the project.