Australian mineral exploration company Tando Resources has completed a transaction to purchase the SPD vanadium project in South Africa.
As part of the deal reached in March this year, Tando can buy up to 73.95% of the project by establishing a JORC-compliant measured resource and completing scoping, pre-feasibility and definitive feasibility studies.
The company noted that it was well advanced in defining the JORC resource for the SPD project as its initial drilling programme is in progress and the first holes have intersected the mineralised units.
In a bid to complete the first phase of the programme within a fortnight, the company has moved another diamond core rig to the site.
This increases the rig count to three, which are deployed to drill out the project’s high grade ‘foreign resource’ of 513Mt at 0.78% vanadium pentoxide.
Tando will drill the high-grade vanadium pipes surrounding the SPD deposit during next month. Samples taken from the pipes returned high grades of vanadium.
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Tando Resources managing director Bill Oliver said: “We are delighted with the rapid progress we are making on the ground. And with the vanadium price trebling in the past 18 months, we see an opportunity to create substantial value for shareholders.”
Discovered in the 1990’s, the SPD project is said to be located in a geological setting similar to that of the processing operations of Glencore’s Rhovan, Bushveld Minerals’ Vametco and International Resources’ Mapochs in the Gauteng and Limpopo provinces.
Other projects held by Tando are located in the Pilbara region in Australia. They include Quartz Bore, Mt Vernon and Mt Sydney projects.