Bushveld Minerals Limited Vametco Inferred & Indicated Mineral Resource and Ore Reserve Update

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Bushveld Minerals Limited (LON: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, has today provided an updated Mineral Resource and Ore Reserve for the Vametco vanadium mine near Brits on the Western Limb of the Bushveld Complex. The updated Mineral Resource and Ore Reserve incorporates data from the 2018 drilling campaign comprising 13 drillholes over a total of 1,506 m of diamond drilling, and has been compiled in accordance with JORC (2012).

Key Highlights

· Ore Reserves have more than doubled to 279,100 tonnes V2O5 in magnetite (previously 137,152 tonnes V2O5 in magnetite), notwithstanding production of approximately 5,700 metric tonnes of vanadium (between October 2017 and March 2019) while the grade has increased by 3 per cent to 2.02 per cent V2O5 (previously 1.96 per cent V2O5).

· Indicated Resources have increased by 187 per cent. to 965,900 tonnes of V2O5 in magnetite (previously 336,604 tonnes V2O5 in magnetite).

· The recently drilled holes added further confidence to the Mineral Resource resulting in a higher ratio of Indicated Mineral Resource to the Inferred Mineral Resources, constituting 75 per cent. of the Total Mineral Resource.

· The aggregate Inferred and Indicated Mineral Resource is distributed across three Seams (The Lower, Intermediate and Upper Seams) and is reported as 186.7 Mt at an average grade of 1.98 per cent V2O5 (in magnetite), with an average magnetite content of 35.0 per cent (in whole rock) for 719,300 tonnes of contained vanadium.

· Within this, the Ore Reserve in the Probable Category is reported as 48.4 Mt across the same three seams at an average grade of 2.02 per cent V2O5 (in magnetite), with an average magnetite content of 28.5 per cent (in whole rock) for 156,300 tonnes of vanadium.

· The Lower Seam is the main ore seam and the thickest, ranging from 13.8 to 52.0 metres in thickness, comprising a Probable Reserve of 40.2 Mt at an average grade of 2.05 per cent V2O5 (in magnetite), with an average magnetite content of 29.4 per cent (in whole rock) for 135,600 tonnes of vanadium.

· The 31 per cent increase in the 2019 Mineral Resource over the 2017 estimate is primarily attributed to reporting the Mineral Resource to a maximum depth of 150m below surface, versus 120m in 2017.

· A relatively higher grade in the 2019 estimate resulted from better definition of the mineralised units due to the recent drilling, which allowed the re-scrutinising of historical data. This, together with reporting the Mineral Resource at a cut-off grade of 20 per cent magnetite (previously no cut-off grade was applied), resulted in a higher-grade Mineral Resource than in 2017, particularly for the Upper Seam that is now defined as a layer of massive magnetite.

· The increase in the ore tonnages for the 2019 Ore Reserve estimate from 26.12 Mt to 48.43 Mt is due to the Mineral Resource definition work on the Intermediate and Upper Seams, which resulted in reclassification to the Indicated category, resulting in the conversion of an additional 8.19 Mt of Ore Reserves within the selected pit design. The additional 14.11 Mt of Ore Reserves from the Lower Seam is due to the larger pit shell from a Whittle pit optimisation based on the overall improved economics.

· The magnetite content grade increase in the Ore Reserves from 26.8 per cent to 28.5 per cent is a direct result of the increase in magnetite content in the Mineral Resources. The impact of this translates to additional potential ore production and vanadium through the processing plant.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

“Following a significant amount of exploration work, including drilling to greater depths, as well as a reinterpretation of the geological model to include the cut-off grade of the magnetite, we have been able to report a significant increase in Ore Reserves and grade from the 2017 estimate.

“The conversion of additional Indicated Mineral Resources to Probable Ore Reserves, plus the larger pit shell, means we have added significant increased production life at Vametco. In fact, even at the future expanded rates of production we have previously laid out, this mine will operate for decades into the future.”

Table 1: Vametco Mineral Resource at a cut-off grade of 20% magnetite, 29 March 2019 – Gross Basis
Class	Seam Name	Tonnes	V₂O₅grade of whole rock	Magnetite grade of whole rock	V₂O₅grade in magnetite	Tonnes V₂O₅ in magnetite	Tonnes V in magnetite
(Millions)	%	%	%	(Thousands)	(Thousands)
Indicated	Upper	5.7	1.44	65.9	1.78	67.0	37.5
Intermediate	28.7	0.68	32.7	1.91	179.2	100.4
Lower	109.4	0.72	32.4	2.03	719.7	403.1
Total	143.8	0.74	33.8	2.00	965.9	541.1
Inferred	Upper	10.5	1.46	63.5	1.75	116.3	65.1
Intermediate	7.0	0.67	32.1	1.92	43.4	24.3
Lower	25.4	0.74	31.3	2.00	158.5	88.8
Total	42.9	0.90	39.3	1.92	318.2	178.2
Indicated and Inferred	Upper	16.2	1.45	64.3	1.76	183.3	102.7
Intermediate	35.7	0.67	32.6	1.91	222.6	124.7
Lower	134.8	0.72	32.1	2.03	878.2	491.9
Total	186.7	0.78	35.0	1.98	1,284.1	719.3

Notes:

All tabulated data have been rounded and as a result minor computational errors may occur.
Mineral Resources which are not Ore Reserves have no demonstrated economic viability.
Mineral Resources are inclusive of Ore Reserves (not indicated in the table).
Magnetite content (grade) is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.
Due to the magnetite grade being a recovered grade, differences will occur between whole rock V2O5 grades back-calculated from concentrate, versus those derived from whole rock assays.
Depleted as at 29 March 2019.
Reported on a Gross Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.

Table 2: Vametco Mineral Resource at a cut-off grade of 20% magnetite, 29 March 2019 – Attributable Basis
Class	Seam Name	Tonnes	V₂O₅grade of whole rock	Magnetite grade of whole rock	V₂O₅grade in magnetite	Tonnes V₂O₅ in magnetite	Tonnes V in magnetite
(Millions)	%	%	%	(Thousands)	(Thousands)
Indicated	Upper	4.2	1.44	65.9	1.78	49.6	27.8
Intermediate	21.2	0.68	32.7	1.91	132.6	74.3
Lower	81.0	0.72	32.4	2.03	532.6	298.3
Total	106.4	0.74	33.8	2.00	714.8	400.4
Inferred	Upper	7.7	1.46	63.5	1.75	86.1	48.2
Intermediate	5.2	0.67	32.1	1.92	32.1	18.0
Lower	18.8	0.74	31.3	2.00	117.3	65.7
Total	31.7	0.90	39.3	1.92	235.4	131.9
Indicated and Inferred	Upper	12.0	1.45	64.3	1.76	135.6	76.0
Intermediate	26.4	0.67	32.6	1.91	164.7	92.3
Lower	99.7	0.72	32.1	2.03	649.8	364.0
Total	138.1	0.78	35.0	1.98	950.2	532.3

Notes:

All tabulated data have been rounded and as a result minor computational errors may occur.
Mineral Resources which are not Ore Reserves have no demonstrated economic viability.
Mineral Resources are inclusive of Ore Reserves (not indicated in the table).
Magnetite content (grade) is determined as the proportion of magnetite concentrate recovered using Davis Tube methodology.
Due to the magnetite grade being a recovered grade, differences will occur between whole rock V2O5 grades back-calculated from concentrate, versus those derived from whole rock assays.
Depleted as at 29 March 2019.
Reported on an Attributable Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.

Table 3: Vametco Ore Reserves, 29 March 2019 – Gross Basis
Class	Seam Name	Tonnes	V₂O₅grade of whole rock	Magnetite grade of whole rock	V₂O₅grade in magnetite	Tonnes V₂O₅ in magnetite	Tonnes V in magnetite
(Millions)	%	%	%	(Thousands)	(Thousands)
Probable	Upper	1.0	0.58	27.3	1.78	4.6	2.6
Intermediate	7.2	0.53	23.7	1.89	32.3	18.1
Lower	40.2	0.63	29.4	2.05	242.1	135.6
Total	48.4	0.62	28.5	2.02	279.1	156.3

Notes:

All tabulated data have been rounded and as a result minor computational errors may occur.
Ore Reserve tonnes and grades reported on dry ROM (plant feed) basis after mining modifying factors have been applied but before beneficiation down-stream recoveries/losses have been applied
Reporting was prepared on a Mineral Resource model developed by MSA
Ore Reserve tonnes depleted as at 29 March 2019.
Reported on a Gross Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.

Table 4: Vametco Ore Reserves, 29 March 2019 – Attributable Basis
Class	Seam Name	Tonnes	V₂O₅grade of whole rock	Magnetite grade of whole rock	V₂O₅grade in magnetite	Tonnes V₂O₅ in magnetite	Tonnes V in magnetite
(Millions)	%	%	%	(Thousands)	(Thousands)
Probable	Upper	0.7	0.58	27.3	1.78	3.4	1.9
Intermediate	5.4	0.53	23.7	1.89	23.9	13.4
Lower	29.8	0.63	29.4	2.05	179.2	100.3
Total	35.8	0.62	28.5	2.02	206.5	115.6

Notes:

All tabulated data have been rounded and as a result minor computational errors may occur.
Ore Reserve tonnes and grades reported on dry ROM (plant feed) basis after mining modifying factors have been applied but before beneficiation down-stream recoveries/losses have been applied
Reporting was prepared on a Mineral Resource model developed by MSA
Ore Reserve tonnes depleted as at 29 March 2019.
Reported on an Attributable Basis. Bushveld Minerals shareholding in Vametco Alloys is 74%.