Tando Resources personnel and brokers review SPD’s vanadium potential close-up
Outcropping of vanadiferous titanomagnetite at Tando Resources’ SPD vanadium project.
Following its decision to acquire the SPD vanadium project late last month, Tando Resources (ASX: TNO) hosted a delegation comprising of company personnel and brokers to the project site in South Africa.
The visitors carried out a field inspection of the project including looking at historical drill collars and 3km of strike hosting vanadium mineralisation.
Several outcropping magnetite pipes were also observed, and samples taken.
Site visitors were also shown potential access routes, which will be taken to account when planning the upcoming drilling campaign.
During the visit, Tando representatives were present during meetings with local community stakeholders.
Regional infrastructure was also reviewed, with Tando stating the project, which is situated in South Africa’s Bushveld Complex, is in a known mining region.
Tando’s review identified critical infrastructure including high voltage power lines and sub stations, the De Hoop Dam as a potential water source, rail links, sealed roads around the project as well as support services within the area including a local skilled workforce.
SPD vanadium project
Late last month, Tando entered an agreement to acquire up 74% in SPD, with the remaining interest held by BEE entities including the Steelpoort Development Trust.
As part of the acquisition, Tando has 45 days to undertake due diligence. Once it elects to proceed with the acquisition, Tando will issue 4.25 million shares and secure an initial 12.5% interest.
Upon reaching specific exploration and development milestones, Tando will issue the vendor an aggregate 35 million shares at A$0.30 each to lock-in the 74% stake.
Previous project operators delineated a resource under the SAMREC Code (2007) of 513.3 million tonnes grading 0.78% vanadium.
Preliminary metallurgical testing on ore samples returned average concentrate grades of 2% vanadium and 13% titanium.
Fast-tracked to production
With about 85% of the world’s vanadium arising out of China, Russia and South Africa, Tando believes SPD has the potential to become a “globally significant” producer based on the non-JORC resource and high grades in concentrate.
A mining application has been lodged for the project and Tando’s strategy is to fast-track SPD into production.
Drilling will begin as soon as possible to convert the foreign SAMREC resource to a JORC estimate. To fund the campaign and more detailed metallurgical test work, Tando has planned a A$2 million capital raising.
Once the placement has been completed, Tando will have around A$5.3 million to fund its aggressive exploration campaign for SPD.