Maracas

The 2,000 ha vanadium property is located in Maracas city of Bahia state, in Brazil. Maracas lies about 250-km southwest of the city of Salvador.

The feasibility study estimated reserves at 13,079,000 t grading 1.34% vanadium pentoxide. The presence of several other vanadium-bearing structures within the property provides confidence regarding the longevity and potential, future expansion of the project.

The deposit is to be mined by open pit mining method. Strip ratio over the 13 years mine-life averages 2.23:1 for 29.1 Mt waste rocks. Mining would be carried by contractors for pre-stripping and the first 2 years of production. Contract crushing would be employed for life of mine.

The grade is projected to be highest in the first eight years when the mill feed averages 1.94% and production would reach 4,520 t vanadium per year.

Milling of the lower grade material is projected to continue for a further ten years after completion of the milling of the higher grade material. Production is to be declining to 1,748 t from year 14 to 22.

The process flowsheet comprises the following steps: comminution, concentration by magnetic separation, roasting, leaching, precipitation and production of ferrovanadium. Mill throughput is 581,000 tpa. Overall vanadium recovery is estimated to be 71.6%.

It was estimated that total production would reach 70,648 tonnes of vanadium contained in ferrovanadium alloy over 23 years. The ferrovanadium produced will be sold to Glencore.

Capital costs associated with infrastructure, mining equipment and construction of the process plant are estimated to be US$270.6 million, including a contingency of US$45.8 million. The estimate has an intended level of accuracy of +/-15 percent.

Commissioning is expected to take place in the 3rd quarter of 2010.