Tando Resources announces that significant progress had been made in its plan to become a major vanadium producer, with the company completing the acquisition of the SPD vanadium project in South Africa.
Tando Resources (ASX:TNO) announces that significant progress had been made in its plan to become a major vanadium producer, with the company completing the acquisition of the SPD Vanadium Project in South Africa.
As quoted from the press release:
Under the acquisition agreements, Tando can acquire up to 73.95 percent of the SPD vanadium project by meeting a series of milestones comprising the establishment of a JORC-compliant measured resource, and completion of scoping, pre-feasibility and definitive feasibility studies.
Tando is well advanced in its strategy to establish the JORC Resource. The company’s maiden drilling program is underway, with the first holes intersecting the mineralized units.
Phase 1 of the program is expected to be completed within a fortnight. To fast-track drilling, another diamond core rig has been mobilized, meaning three rigs are now drilling out the high grade “foreign resource” of 513Mt at 0.78 percent V2O5 at SPD.
In addition, the highly anticipated drilling of the high-grade vanadium pipes surrounding the SPD deposit will start in mid-October.
Samples taken from these pipes, which start from the surface, have returned extremely high grades of vanadium, highlighting their potential to underpin a low-cost direct shipping ore (DSO) operation which could generate early cashflow for Tando.
Tando managing director Bill Oliver said the company’s strategy at SPD was proceeding exactly to plan. “We are delighted with the rapid progress we are making on the ground,” Mr Oliver said. “And with the vanadium price trebling in the past 18 months, we see an opportunity to create substantial value for shareholders.”