The first batch of assays include 7m at 0.84% V2O5 and 5.6% titanium dioxide from 3m in the upper layer; and of 35m at 0.66% V2O5 and 4.59% TiO2 from 47m including 2m at 1.61% V2O5 and 9m at 1.12% V2O5 from 73m - all in the same hole.

 

Historical drilling in the area returned magnetic concentrate grades above 2.2% V2O5.

 

The junior, which has three rigs on site, expects the first phase of its program, 18 holes for 1650m, to be completed next week.

 

The drilling, which has been underway for six weeks, will then switch to surrounding shallow vanadium pipes within 3km that have the potential to host a low-cost DSO operation.

 

The DSO drilling will test areas where samples that were consistently above 2% V2O5 from surface. 

 

Once the DSO program is complete the company will move into phase two, which will be aimed at upgrading the resource to indicated status with 58 holes for 5550m.

 

SPD has a resource of 513 million tonnes at a grade of 0.78% V2O5 defined under the South African mineral code, so the phase one work is redrilling that resource to confirm the size and generate a maiden JORC 2012 resource, which should be prepared in November.

 

The junior is earning up to 73.95% of SPD by funding works through to a definitive feasibility study in return for scrip issued to a private equity fund that expects to end up with 50% of Tando.

 

Tando shares jumped 10% in morning trade to A11c, capitalising the junior at $21 million.

 

The vanadium price has soared from less than US$5 per pound to just shy of $25/lb since late 2017, and Tando is hoping to ride that demand, saying SPD has the potential to be globally significant based on its tonnage and grade in concentrate.

 

Vanadium, 85% of which is supplied from China, Russia and South Africa, is used primarily for steel making, which accounts for 90% of demand, but battery storage applications are surging.

 

SPD is described as being similar to several major South African deposits, and is close to key infrastructure.