Pit Modeling Shows Potential for 100+ Year Mining & Low Strip Ratio at Speewah Vanadium-Titanium Project
HIGHLIGHTS
• Preliminary modeling for 50 million tonnes initial start-up pit at Central Vanadium-Titanium deposit shows potential for a long life mining operation at Speewah;
• Pit strip ratio for the initial pit is approximately 0.5:1 waste rock to ore;
• Flat Central deposit geometry means pit can be readily extended eastward to deliver multiples of initial modelled tonnage;
• Similar modelling of the Buckman and Red Hill deposits would deliver significant tonnage and mine life extensions.
PRELIMINARY PIT MODELING OF CENTRAL VANADIUM-TITANIUM DEPOSIT
Speewah Metals Limited (“Speewah” or “the Company”) (ASX: SPM) is pleased to report the results from some preliminary pit modelling completed by Runge Limited (“Runge”) to ascertain the footprint for a possible start-up vanadium-titanium operation based on mining the high grade zone of the Central Vanadium Deposit at Speewah (Figure 1). This modelling estimated the pit volumes, tonnages and strip ratios for two scenarios to produce approximately 50 million tonnes (Mt) of high grade material from the Central deposit. It also provided some additional information for the delineation of a Mining Lease to be secured after further studies are completed.
The preliminary pit designs were modeled using the block model used for the Central deposit resource estimate. The two mining scenarios examined included mining along the outcrop line in the western edge of the deposit and mining the parts of the deposit along the western edge that had the thickest high grade zone. Details of the modeling for these two scenarios are provided in Attachment 1 to the ASX announcement.
Both preliminary pit designs modeled produced similar strip ratios of approximately 0.5: 1 waste rock to ore. This low strip ratio is due to the outcropping nature of the deposit in the west and its flat (4°) dip to the east, with waste material constituting the overlying lower grade material above the high grade basal layer (Figure 2 of the ASX announcement).
The shape and number of pits varied for each mining scenario modeled. Option I examined mining along the western outcrop in one large elongated pit and a smaller pit to the south. This pit design produced the lowest strip ratio of 0.43 and also delivered more Measured and Indicated material based on current drilling. Option 2 mined the thickest and highest grade portions of the basal high grade zone along the western outcropping edge of the deposit, in order to maximize the grade of the potential mined material. This identified the three high grade portions of the Central deposit as shown by the three pits along the western margin of the deposit. The strip ratio was slightly higher at 0.59.
DIRECTOR’S COMMENTARY
The Board is very pleased to be able to provide a visual demonstration of the size of the Speewah Vanadium-Titanium deposits and the potential for long life operations.
Flat dipping geometry of the large Central deposit means the preliminary pit could be readily extended eastward to deliver multiples of initial modelled tonnage. Similarly, modelling of the Buckman and Red Hill deposits would deliver significant tonnage and mine life extensions.
Significantly, the modeling of a 50 million tonne pit approximates the design requirements for a 4 million tonnes per annum mining operation sufficient to support a potential 10 year operation producing 7,000 tonnes per annum ferrovanadium (using mass recoveries of Speewah concentrate and assuming pyrometallurgical recoveries of other similar vanadium-in-magnetite projects).
It is important to note that as the initial pit modeling represents less than 10% of the Central deposit, the combined deposits of Central, Buckman and Red Hill would likely support a mine life of greater than 100 years.
The estimated low strip ratio’s for an initial pit is an important input into the future feasibility studies for the development of a mine.
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