Ferro-Alloy Resources Ltd (LSE:FAR) said the expanded feasibility study at its Balasausqandiq vanadium deposit in Southern Kazakhstan has already identified thicker intersections from in-fill drilling.
The junior extended its original study plans to four ore bodies from one after an investment from mining backer Vision Blue, with the drilling programme now 50% complete.
The study will look at an initial output of 5,600 tonnes of vanadium pentoxide per year, followed by phase 2 where output rises to 22,400 tonnes per year.
Phase 1’s study is expected to be completed on the previously announced timetable by around the middle of 2023, Ferro-Alloy said today while adding that denser drilling of the original orebody (OB1) has already confirmed the previous modelling but with thicker intersections than expected in places.
Other areas of the study have indicated high vanadium recovery rates with a low level of acid required in the processing stage due to the ore’s low iron content.
Test results also showed a 40% carbon by-product can be recovered at 25% mass recovery that can be used as a substitute for carbon black in tyre manufacture.
The carbon black market is estimated to be worth US$19bn annually and mostly in tyre manufacturing, though Ferro-Alloy added that as it is a non-standard form its value depends on assessments from potential off-takers.