# Ferro-Alloy Resources delighted with MRE results for OB1

- Link: https://www.directorstalkinterviews.com/ferro-alloy-resources-delighted-with-mre-results-for-ob1/4121117816
- Published: 2023-05-02T16:38:29+01:00
- Author: Amilia Stone

**Ferro-Alloy Resources Ltd** ([LON:FAR](https://www.directorstalkinterviews.com/company/ferro-alloy-resources/far.l)),
the vanadium producer and developer of the large Balasausqandiq vanadium deposit
in Southern Kazakhstan, has announced the full results of the updated mineral resource
estimate from SRK Consulting Ltd prepared in accordance with the terms and guidelines
of the Australian Code for the Reporting of Exploration Results, Mineral Resources
and Ore Reserves for Ore-Body 1 at the Balasausqandiq deposit.

**MRE Highlights Include:**

·    An Indicated Mineral Resource of 32.9 million tonnes for OB1, at a mean grade
of 0.62% V_(2)O_(5,) reported at a marginal cut-off grade of 0.4% V_(2)O_(5) – equating
to 203,364 contained tonnes of vanadium pentoxide (“V_(2)O_(5)“)

·    An increase of 8.6 million tonnes (35.4%) of mineral resource and an increase
of 38,058 tonnes (23%) of contained V_(2)O_(5) by comparison with the estimate contained
in the Company’s 2018 Competent Persons Report 

·    The results of the previously reported infill drilling and trenching programmes
completed during 2021/22 have been successful in converting 100% of the Resources
to Indicated for the OB1 deposit. No Measured or Inferred Resource are stated

·    A total of 75 diamond core holes and 88 trenches were used to define the Resource(
a reduction of drill section spacing to 250 metres from the original 500 metres 
increased confidence)

·    Confirmation that there are reasonable prospects for eventual economic extraction
by constraining the Mineral Resources to an optimised open pit shell (50 degree 
slopes and a revenue factor of 1) using a selling price for 98% V_(2)O_(5) flake
of USD9.82 /lb

> **Commenting on the MRE, Nick Bridgen, CEO of Ferro-Alloy Resources said:**
> _“We are delighted with the results of this MRE for OB1 which has not only upgraded
> the classification of all the resources to the Indicated category, but increased
> the contained_ V_(2)O_(5) _at OB1 by 23%.   Exploration of OB2, 3 and 4 has been
> completed and the mineral resource estimate for those ore-bodies is expected later
> this year._
> _We look forward to publishing the results of the feasibility s__tudy for Stage
> 1 of the Balasausqandiq project, expected to be completed in the final quarter
> of 2023, with the feasibility study for Stage 2 to follow in 2024.”_

**Overview of the April 2023 Mineral Resource Estimate for Balasausqandiq OB1 Deposit**

The MRE for the Balasausqandiq OB1 vanadium deposit was based on the historic and
latest infill trench and diamond drill programme completed in 2021-2022. The Resource
has been estimated from 35 new drillholes and 29 new trenches and was aimed to verify
historic diamond drilling and trenching. A total of 75 diamond core holes and 88
trenches have now been used to define the Resource.

The current estimate is based on diamond core and trench profiles sections at a 
250 m spacing along the strike of the OB1 deposit. A pit optimization study has 
also been conducted to assess the reasonable prospects for eventual economic extraction.
The latest TetraTech testwork shows high recoveries in the order of 85 to 95% V_(
2)O_(5) across all grade ranges. The pit optimisation used an overall slope angle
of 50 degrees, a processing recovery of 85% and a revenue factor of 1.0 for a selling
price of USD9.82 /lb to give a conservative evaluation and achieve the head grade
for which the 85% processing recovery was applicable at the marginal cut-off grade.

Results of the updated MRE are an Indicated Mineral Resource of 32.9 million tonnes(
Mt) at a mean grade of 0.62% V_(2)O_(5) reported at a marginal cut-off grade of 
0.4% V_(2)O_(5).

No Measured or Inferred Resources are reported. Table 1 below presents a summary
of the OB1 MRE broken down by metal and Resource Classification.

**Table 1. Summary Report for April 2023 MRE OB 1 Resource**

| **Classification** | **Zone** | **Tonnage (Mt)** | **% V_(2)O_(5)** | **% Mo ** | **% U ** | **% C** | 
| Indicated   | OxideTransitionalFresh (Sulphide) | 1.57 | 0.67 | 0.014 | 0.0047 | 7.16 | 
| 1.25 | 0.66 | 0.014 | 0.0045 | 7.17 | 
| 30.08 | 0.61 | 0.015 | 0.0052 | 8.83 | 
| **Total** |  | **32.90** | **0.62** | **0.015** | **0.0051** | **8.69** |

Notes for Mineral Resource Estimate:

·      Mineral Resources have an effective date of 1st April 2023 

·      Reported Mineral Resources are those remaining below the depleted current
historic pits and topographic surface as of 1st April 2023

·      All Resources are reported above a cut-off grade of 0.4% V_(2)O_(5)  

·      The MRE established that there are reasonable prospects for eventual economic
extraction by constraining the Mineral Resources to an optimised open pit shell (
50 degree slopes and a revenue factor of 1) using a selling price for 98% V_(2)O_(
5)  flake of USD9.82 /lb

·      Tonnages are reported in metric units, grades in percent (%).  All contained
metal is reported in tonnes.  Tonnages, grades, and contained metal totals are rounded
appropriately.  Rounding as required by reporting guidelines may result in apparent
summation differences in Table 1

**Table 2. Comparison of 2018 and 2023 MRE Estimates**

| **Estimate** | **Tonnage (Mt)** | **% V_(2)O_(5)** | **Contained V_(2)O_(5) (t) ** | 
|  2018 MRE COG 0.0% (Ind + Inf) | 24.3 | 0.68 | 165,306 | 
| 2023 MRE Indicated COG 0.4% (Indicated) | 32.9 | 0.62 | 203,364 |

The Competent Person for the declaration of Mineral Resources is Mr Peter Gleeson(
CEng, MIMMM, AIGS), an employee of SRK.  The Mineral Resource estimate was prepared
by a team of consultants from SRK.

Ferro-Alloy Resources is developing the giant Balasausqandiq vanadium deposit in
Kyzylordinskaya oblast of southern Kazakhstan. The ore at this deposit is unlike
that of nearly all other primary vanadium deposits and is capable of being treated
by a much lower cost process.

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