Bushveld Provides Scoping Study Results for Bushveld Vanadium Project

Bushveld Minerals Ltd. (LSE:BMN) provided a summary of a scoping study on the development of its Bushveld vanadium project.

As quoted in the press release:

Two different processing routes were considered for the development of the Project – the salt roast and the pig-iron smelting route. The Scoping Study has helped the Company to select the salt roast processing route as the best fit with the Company’s criteria for the development of its projects, being: first quartile cost curve position, proven path to near-term production, low capital expenditure and scalability.

Highlights include:

For a base case production scenario of 1 Mtpa Run-of-Mine producing 10,370 tonnes of V₂O₅ flakes, the Scoping Study delivers robust post-tax economics (i.e after a corporate tax of 28%, a withholding tax of 15% and a royalty tax of 5%):

• Low capital expenditure of US$261.5 million;
• Pre-tax NPV of US$561.9 m and post-tax NPV of US$263.6 m (at 10% discount rate);
• Pre-tax IRR of 35.6% and real post-tax IRR of 24.1% with a low project risk profile;
• Low operating costs (~US$5.99 / kg or US$ 2.72 / lb of V₂O₅ flakes);
• >60% operating margins;
• Long life-of-mine: 30 years, exploiting 58% of a resource with significant growth upside; and
• Payback: 4 years and 4 months from start of mining.

Click here to read the full Bushveld Minerals Ltd. (LSE:BMN) press release.