Vanadium Resources (ASX:VR8) is expecting to begin mine and concentrator construction at the Steelpoortdrift Vanadium Project in South Africa in the third quarter of 2025.
Once construction work is underway, early concentrate production will begin, while also accelerating operating cashflow. The salt-roast-leach (SRL) plant construction is expected to begin after the first quarter of 2026.
This news follows after the company conducted a comprehensive internal review of the 2022 Definitive Feasibility Study.
After completing the review, Vanadium Resources has realised the significant efficiencies for its concentrator and SLR plants through plant modifications and by locating both plants at one location.
Vanadium Resources, which has a market capitalisation of $20.25 million, says plant modifications have improved operational efficiencies, and is anticipated to reduce operating costs. Repositioning of the SRL plant to Steelpoortdrift is anticipated to reduce operating costs even further, as well as cutting pre-production CAPEX, and streamlining operations.
Executive Chairman Jurie Wessels says the latest technical review has unearthed greater potential for improvement, which will entrench the project as one of the most “significant and capital-efficient vanadium projects in the world.”
“Prior to this review, Steelpoortdrift was already expected to have bottom quartile operating costs and capital intensity, and this technical review and repositioning further expands upon these advantages,” Wessels says.
The company adds its ongoing offtake, funding, and strategic equity processes for the development of the concentrator and SRL plants are well advanced.
Vanadium Resources says strategic equity and debt funding will be sought first for the concentrator, followed by funding for the SRL plant.
Wessels notes that the phased funding approach should enable the company to reach positive operating cash flows sooner.
“The unequivocal support for the repositioning received from the communities at Steelpoortdrift has also broadened our resolve to conduct the required investigations towards consolidation and the potential realisation of the anticipated efficiencies,” he continues.
Further, the company is in discussions with tier one parties for potential engineering, procurement, construction and financing services, and to explore ways of accelerating its downstream ambitions.
The Steelpoortdrift Project boasts a substantial vanadium deposit, with a mineral resource of 680 million tonnes at 0.70% vanadium pentoxide and a proved and probable ore reserve of 77 million tonnes at 0.72% vanadium pentoxide.
Vanadium Resources is focused on becoming a vanadium producer through its flagship projects, Steelpoortdrift and Tweenfontien.
Write to Aaliyah Rogan at Mining.com.au
Images: Vanadium Resources
