Name and Location
Bushveld P-Q iron-ore and titanium 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 about 25 207 ha.

The P-Q Zone deposit consists of a total inferred and indicated Joint Ore Reserves Committee-compliant titanomagnetite mineral resource of 939-million tonnes at a cutoff of 35% iron oxide. A scoping study was completed in April 2013 on a portion of a 771-million-tonne resource that had been declared at the time of publication.

Only an estimated12%, or 83-million tonnes, of the total 771-million-tonne resource was considered as part of the mine life of the project.

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.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a discounted rate of 10%, of $188-million and an internal rate of return of 34.2%, with a payback period of two years.

Value
For its base case scenario, the scoping study highlights a low initial capital expenditure (capex) of $125.8-million at a run-of-mine of five-million tonnes a year.

Capex for a seven-million-tonne-a-year operation is estimated at $153.4-million.

Duration
The project has an 18-year life-of-mine.

Latest Developments
Bushveld is continuing with its pyrometallurgical testwork designed to evaluate the investment case for an integrated pig iron and titanium product.

Collaboration on pyrometallurgy testwork with China Railway & Engineering Corporation No 10 is ongoing.

Simultaneously, Bushveld is investigating options for a primary titanium production route, with an iron by-product, if it is shown to present a rapid path to production with attractive economics. It will also investigate the viability of processing the phosphate resource in the hanging wall of the P-Q deposit. Throughout these work programmes, Bushveld will continue to explore possible synergies with the adjacent Bushveld vanadium project.

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, fax +27 11 268 5170 or email info@bushveldminerals.com.