Modern Mining September 2018

MINING News

Drill rigs mobilised to SPD vanadium project

ASX-listed Tando Resources reports that it is set to start its drilling programme at its SPD vanadium project in South Africa. Two drilling rigs (one RC and one dia- mond core) have been mobilised to site, with drilling scheduled to be conducted at both the existing high-grade resource and the surrounding high-grade vanadium pipes at the same time. As part of mobilisation, the drilling con- tractor, assisted by Tando, has recruited employees from the local communities. This is expected to be the first of many opportunities for the project to provide benefits such as employment and training for these communities. Phase One of the drilling programme will comprise 18 holes for 1 650 m at the SPD deposit, where there is currently a resource of 513 Mt at a grade of 0,78 % V 2 O 5 defined under the SAMREC code. This resource is a ‘foreign resource’ (as defined in the ASX Listing Rules). The drill- ing is aimed at converting it to a Mineral Resource Estimate (MRE) as defined in the JORC Code. Tando expects the MRE will be published by the end of October 2018. Phase One will also include the first holes to be drilled at the shallow, high- grade vanadium pipes which sit within a 3 km radius of the SPD deposit. Tando has reported a host of high-grade vana- dium assays from samples taken from the surface of these pipes with assay results consistently above 2 % V 2 O 5 . Tando says these vanadium grades highlight the strong potential for the pipes to underpin a simple, low-cost, high-grade DSO operation with a compressed devel- opment timetable. First visual results from drilling of the pipes are expected later this month (September) with assay results

Location of the SPD vanadium project and other vanadium deposits in the Bushveld Igneous Complex.

likely to be received during October. Following completion of the Phase One drilling programme, Tando will move straight into Phase Two, which will be aimed at upgrading the maiden JORC resource to the indicated category (pro- vided results are as anticipated). Phase Two is currently designed to comprise 58 holes for 5 550 m. The cost to complete the entire Phase 1 and Phase 2 drilling programme and the resultant resource estimations is estimated at A$1,4 million. Tando is fully funded for delivering strong financial returns and producing premium-quality zircon and tita- nium products that are in high demand. The project, which is favourably located approximately 25 km from Dar es Salaam, has a low development capital cost of US$30 million. It has an ore reserve of 12,3 Mt at 3,9 % Total Heavy Minerals (THM), with opportunities to grow reserves and mine life, further increasing financial returns. 

the drilling programme as well as the metallurgical and mining studies which will follow completion of the drilling programme. Tando MD Bill Oliver said the scene was set for Tando to demonstrate the value of the world-class SPD vanadium project. “We know we have extensive high- grade vanadium at SPD and that the value of the project will become clearer as we convert it to JORC status. We also believe there is outstanding potential at the sur- rounding vanadium pipes, which we have demonstrated host high-grade miner- alisation from surface and may therefore underpin a low-cost DSO operation. The commencement of drilling, and the com- bination of the impending assay results, the testing of the pipes and the conver- sion to JORC resource status means we will have strong newsflow over coming months.” The SPD project is located on the Eastern Limb of the Bushveld Complex. It is only 30 km from the currently dormant Mapochs mine, which has a processing plant and railway infrastructure. 

Strandline receives mining licence for Fungoni ASX-listed Strandline Resources reports that the Tanzanian Ministry of Minerals Mining Commission has granted the mining licence for its Fungoni heavy mineral sands project. The grant of the mining licence is a major milestone allowing Strandline to finalise development plans, including completion of funding and pre-construction activities. The Fungoni Definitive Feasibility Study (DFS), completed in October 2017, con- firmed the project will be capital efficient,

6  MODERN MINING  September 2018