Mineral resource

The Balasausqandiq deposit is very large, with the centre of the estimated range being around 126 million tonnes of ore, equivalent to over 840,000 tonnes of V₂O₅ and equal to over six times the annual world production of 2016. It is made up of five known ore-bodies although exploration is not yet complete.  When by-products are added on a “vanadium equivalent” basis, the value of the content of the deposit is even higher. Full exploration is likely to produce much more as the “prognostic” category of resource is some 10 times bigger still.

A GKZ (Kazakh State Reserves Committee) reserve of over 70 M tonnes was confirmed in 2014 as shown in the table below. This GKZ reserve was based on the partial drilling of the known ore-bodies and therefore does not reflect the full depth or extent of the known mineralisation.  This reserve is used as the basis of mine planning and financial analysis in the Competent Person’s Report except that the lower ore grade set out in the JORC resource estimate (below) has been applied to the technical parameters and financial model.

2014 GKZ Reserve Summary

Category

Reserve (1000 t)

Mean grade V₂O₅ [%]

B

832

1.00

C1

15,649

0.75

C2

54,366

0.74

B+C1+C2

70,847

     

FAR was able to use this officially approved GKZ (Kazakhstan’s State Commission on Mineral Reserves) reserve to conduct economic studies on a much wider resource base than that declared for the interim but more limited JORC-based resource set out below.

Resource under JORC Code guidelines

GMR was commissioned by FAR in 2007 to provide on-going technical expertise in mineral resource evaluation, including geological and exploration support, to enable proper assessment of the Balasausqandiq deposit according to international standards. This has allowed the reporting of resources in accordance with the internationally recognised JORC Code guidelines.  Only ore body number 1 has been adequately explored, and necessary supporting historic records recovered, to allow for full reporting as a resource under the JORC code, with ore-bodies 2 – 5 being classified as Exploration Potential pending further drilling.

JORC Vanadium Resource OB1

By-Products OB1 (primary ore only)

JORC Class

V₂O₅ %
Cut-off

V₂O₅ %
Mean

Tonnes [m]

JORC indicated

JORC inferred

Total
C%
Mean

JORC inferred MoO₃ % mean

JORC inferred U₃O₈ % mean

C%
Mean

Tonnes [m]

C%
Mean

Tonnes [m]

Indicated

0.0

0.67

21.43

14.08

10.68

13.09

10.75

13.59

0.0300

0.0090

Inferred

0.0

0.67

1.56

 

 

13.43

1.56

13.43

0.0297

0.0085

Combined

0.0

0.67

22.99

 

 

 

 

13.58

0.0300

0.0090

Oxide cap inferred

0.0

0.89

1.33

 

 

 

 

 

 

 

Total

0.0

0.68

24.32

 

 

 

 

 

 

      

JORC Based Exploration Target (JORC 2004 Guidelines)

Orebodies 2 to 5

Strike Length (km)

Tonnes [m]

V₂O₅ Grade Range [%]

From

To

From

To

Primary Zone

20.9

73

98

0.65

0.71

Oxide Zone

4.25

5.75

0.85

0.98

Combined

 

77.3

103.8

0.66

0.72

JORC Based Exploration Target (JORC 2004 Guidelines) - By-Products applied to Ore Bodies 2 to 5 (Primary Zone Only)

Target

Global Grades based on OB1

Grade Range ± 5 %

From

To

Carbon

13.58 %

12.9

14.26

MoO₃

0.030 %

0.029

0.032

U₃O₈

0.009 %

0.009

0.009

REM

335 ppm

318

352

Total Tonnes (millions)

 

73

98