Name and Location
Bushveld iron-ore project, Limpopo, South Africa.

Client
Bushveld Minerals.

Project Description
The Bushveld project is based on three adjacent new-order prospecting rights on 12 farms, covering 25 207 ha.

A scoping study has been completed on the larger, but lower-grade, iron and vanadium P-Q zone, equating to 12% of the total Joint Ore Reserves Committee (Jorc) resource. The study highlights a low capital expenditure (capex) and product route at a base case run-of-mine of five-million tonnes a year.

There is scope for project mining volumes to be ramped up to seven-million tonnes a year, given that the scoping study uses only 12% of the current resource, which is based on only 5.5 km of a potential 18 km strike. This is subject to a rail infrastructure capacity study being undertaken.

The project also offers opportunity for downstream beneficiation.

Value
The project has a low capex of $126-million.

Capex for a seven-million-tonne-a-year operation is estimated at $153-million.

Duration
Bushveld aims to start production in 2016.

Latest Developments
Bushveld Minerals has increased its Jorc-compliant mineral resource increase at the Bushveld iron-ore project by 29%.

The project currently boasts a total inferred and indicated mineral resource of 991-million tonnes, which includes 52-million tonnes at a 40% iron oxide (Fe2O3) cutoff on the main magnetite layer (MML).

The total inferred and indicated mineral resource for the P-Q zone deposit is 939-million tonnes of iron-ore at a cutoff of 35% Fe2O, after a 31% resource increase from farms Schoonoord 786LR and Bellevue 808LR.

Bushveld expects to deliver a mineral resource of more than one-billion tonnes through the delineation of further openpittable tonnes to the south, along further strike extensions of this mineralisation.

Meanwhile, the company continues progressing the downstream development of the project towards production, with a detailed metallurgical testwork programme, including pyrometallurgical testwork, as part of its prefeasibility studies.

The intention is to add a scalability proposition to the realisable, relatively low-capital expenditure production scenario of the scoping study announced in April 2013, which envisages using a fraction of the current resource.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bushveld Minerals, tel +27 11 268 6555 or fax +27 11 268 5170.