Tando Resources identifies new cluster of ‘vanadium pipes’
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Tando Resources (ASX:TNO) has announced confirmation of a major new cluster of vanadium pipes at its SPD Vanadium Project in South Africa.
TNO announced earlier this month that a magnetic survey identified a new 400m by 400m target in the north-east of the project. Since then, the company has mapped and sampled the target area, confirming the presence of a new cluster of vanadium pipes.
Analytical results are pending, but on-ground inspection indicates that these pipes are very similar to those already mapped and sampled. As a result, TNO has included this cluster on the list of targets which will be drilled as part of its upcoming program at the SPD Vanadium Project.
Confirmation of the presence of this new cluster provides more strong evidence of the potential for a low-cost DSO operation at SPD.
It should be noted that this is an early stage company, so investors should seek professional financial advice for further information if considering this stock for their portfolio.
Mapping and sampling has already delineated a host of shallow, high-grade vanadium pipes, which sit within a 3km radius of the established vanadium deposit at SPD. The high resolution survey has defined the dimensions of these pipes, but also identified the additional cluster referred to above.
Surface sampling conducted by TNO prior to the survey at many of these pipes returned high-grade vanadium assays which were consistently above 2% V2O5. The latest cluster was not sampled at the time because it was only identified in the recent survey.
The company is now expediting plans for a maiden drilling program at these vanadium pipes. To help fast-track this strategy, the team is investigating flying in a heli-rig rather than bringing in a drilling rig over land, which would enable drilling to start earlier than if earthmoving was required.
TNO is also commissioning a marketing study into the potential market and pricing for the DSO product, specifically the product specifications most in demand.
The additional vanadium pipes surround the SPD deposit where there is currently a resource of 513 million tonnes at a grade of 0.78% V2O5 defined under the SAMREC code (this resource is a “foreign resource”).
TNO recently received notification of grant of the Mining Right for the SPD Project by the South African Department of Mineral Resources, which paves the way for drilling to start later this month at both the SPD deposit and the surrounding pipes.
Drilling at the SPD deposit will be aimed at converting the current “foreign resource” to a Mineral Resource Estimate (MRE) as defined in the JORC Code. The company expects to release the JORC Estimate by October this year.
Following completion of the Phase One drilling program, TNO will move straight into Phase Two, which will be aimed at upgrading the maiden JORC Resource to an Indicated category (provided results are as anticipated). Currently, Phase Two is designed to comprise 58 holes for 5,550m.