Sunday, October 24, 2021

Tsodilo bullish on iron deposits

Tsodilo Resources Limited has announced positive geotechnical lab test results for its wholly owned Xaudum Iron Project.

The first set of geotechnical lab tests conducted on the Xaudum Iron Formation (XIF) were undertaken through a collaboration with Botswana International University of Science and Technology (BIUST).

The tests indicate that the XIF materials are competent and have good to moderate strength properties and will result in a positive set of geotechnical parameters to be used in the ongoing Preliminary Economic Assessment of the XIF project, the company said in a statement on Monday.

“The results were what we expected, they show that the XIF materials are all within standard mechanical rock property ranges and that there will be no geotechnical issues arising from the XIF materials and confirm that the XIF will show “normal” pit wall angles as assumed in the company’s previous resource reporting,” said Tsodilo’s Chairman and CEO James M. Bruchs.

In March, Tsodilo revealed that metallurgical results show that the XIF magnetite product is expected to be a premium high-grade product containing +67% iron magnetite.

High-grade ores over 65% Fe currently command larger price premiums over standard ores of 62% Fe resulting in higher margins for suppliers of high-grade products. The current global drive for lower emission steel production results in steel producers dramatically increasing their demand for these high-grade ores.

Iron ore increased in price by 74 percent in 2020 outperforming all other metals by a significant margin as iron ore reached close to $180 per tonne (62% Fe, CFR China) in December 2020, a level not seen for almost a decade and the price continues today in the range of US$170 per tonne.

Tsodilo Resources Limited is engaged in the search for economic diamond, metal deposits and industrial stone at its Bosoto, Gcwihaba and Newdico projects in Botswana. The company has a 100 percent stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) and the PL216/2017 diamond prospection license also in the OKF.

The company holds 90 percent stake in its Gcwihaba project area consisting of seven metal (base, precious, platinum group, and rare earth) prospecting licenses all located in the North-West district, and 100 percent interest in its Newdico industrial stone project located in the Central district.

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