Next Investors logo grey

Tando Resources to acquire new high-grade Vanadium project

Published 22-MAR-2018 12:30 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Tando Resources (ASX:TNO) today announced that it is entering the energy metals market, via the acquisition of the SPD Vanadium Project in the established vanadium region of Gauteng, South Africa.

TNO will acquire 100% of the issued capital in Steelpoortvan Pty Ltd, which has a right to acquire 74% of Vanadium Resources (Pty) Ltd — the 100% owner of the SPD Vanadium Project.

The SPD Vanadium Project is a large, high grade magnetite hosted vanadium deposit. It has numerous RC and diamond drilling results of intersections greater than 1% vanadium oxide with associated titanium mineralisation in magnetite units.

Mineralisation on site is found in two magnetite layers, with drill intersections yielding results including:

  • 14m at 1.08% vanadium oxide (V2O5) + 7.07% titanium dioxide (TiO2) from 9m (SFR013)
  • 26.9m at 0.80% V2O5 from 43.1m & 12.2m at 0.90% V2O5 from 127.2m (SFDD001)
  • 20m at 0.96% V2O5 + 8.35% TiO2 from 11m (SFR011)
  • 17m at 0.92% V2O5 + 7.29% TiO2 from 13m (SFR012)
  • 13m at 1.13% V2O5 + 7.43% TiO2 from 10m (SFR017)
  • 44m at 0.66% V2O5 TiO2 + 4.24% TiO2 from 35m (SFR008),
  • 15m at 0.92% V2O5 + 6.44% TiO2 from 8m (SFR018)
  • 34m at 0.65% V2O5 + 4.58% TiO2 from 23m (SFR009)
  • 9m at 1.34% V2O5 + 10.5% TiO2 from 9m (SFR019)

In addition, drill samples were run through a Davis Tube to obtain a magnetic concentrate. According to the company, vanadium and titanium content in the concentrate is exceptionally consistent, averaging 2% vanadium and 13% titanium oxide.

Of course, as with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

Based on historic drilling data, a qualifying foreign resource estimate of 513 million tonnes was projected for the SPD Vanadium Project by GEMECS Pty Ltd (below) in accordance with the SAMREC Code (2007).

Next Investors Image

TNO plans to complete a testwork programme at SPD, which will utilise hydrometallurgical processes to extract high purity vanadium and titanium products.

The deal makes TNO one of only a few vanadium stocks on the ASX, while the SPD Project has the potential to be globally significant based on its tonnage and grade in concentrate and compares extremely well to its peers.

Grade in concentrate tando resources

TNO Managing Director Bill Oliver commented on the highly promising acquisition, “We have been interested in gaining exposure to the energy storage market and see vanadium as a key commodity in the development of that sector.

“The opportunity to acquire a project of this scale with these grades, both whole rock and more important grade-in-concentrate, was very appealing and we look forward to completing the DD and commencing drilling and other work programmes on the SPD Vanadium Project,” he said.

The total consideration is 35 million shares at a deemed price of 30c, subject to shareholder approval and payable when the project reaches certain exploration milestone. TNO will also issue options to the vendors and the advisors involved in the deal.

Further info about the SPD Vanadium Project

Based off tonnage and grade in concentrate, the SPD Vanadium Project has the potential to become a globally significant vanadium Resource.

The project is located in a similar geological setting to the mining operations of Rhovan (Glencore), Vametco (Bushveld Minerals) and Mapochs (International Resources Ltd) in the Gauteng region of South Africa.

Next Investors Image

The SPD Vanadium Project was discovered in the 1990s during a regional exploration campaign to find new supply for active vanadium operations. Initial exploration at the site consisted of six diamond core drill holes for 1051.6m as well as in-depth geological mapping.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.