Aim-listed Ironveld has reported that, following a detailed metallurgical audit to address product variability, the company has implemented key technical improvements as part of a reconfiguration of the Lapon plant, in Limpopo.

The plant is operated and managed by Daemaneng Minerals on behalf of Ironveld.

The main steps completed or in progress include upgraded water supply and storage systems to ensure continuous plant operations; the relocating and optimising of the sizing cyclone to maximise separation efficiency; the installation of a new axial-aligned magnetic separator, expected to consistently deliver dense media separation (DMS)-grade magnetite product above 90% magnetic purity; and replaced product pipelines and finalised product storage facilities, with concrete floors completed on April 28.

Ironveld explains that the programme is about four days behind schedule owing to persistent inclement weather affecting concrete works.

The company notes that its contractor, Daemaneng, is confident of achieving first deliveries of DMS-grade magnetite under the existing offtake contract during May.

Further, Daemaneng expects to reach sustained production of 2 500 t a month by June, followed by a gradual increase thereafter. 

The company is targeting the plant's full capacity of 7 500 t a month by the end of this year at the very latest, with the potential to reach this level significantly earlier as operational efficiencies improve.

In addition to the existing contract, Ironveld says it has several offtake options at an advanced stage of negotiation, with ongoing alignment on price and terms.

However, the company says it is not committing to signing new offtake agreements until production capacity is firmly established and can be appropriately aligned with demand and supply capability.

These options will then be activated and scaled progressively as production volumes increase.

LAYER 21 MINERALOGICAL STUDY

Meanwhile, Ironveld has engaged Mintek, South Africa’s national mineral research organisation, to perform a mineralogical study on two boreholes from Layer 21 of the magnetite layers, which occur across the company’s mining rights.

Layer 21 is a magnetite-bearing horizon which outcrops on surface to the west of the main magnetite layer in the mining right area.

It contains ilmenite and apatite that may contain rare earth elements (REEs).

With plant reconfiguration nearing completion and first deliveries imminent, Ironveld says it is now in a position to look beyond near-term production and assess the broader mineral potential of its asset.

The company explains that understanding the composition and variability of Layer 21 will inform future mine planning, potential by-product recovery, and the possibility of selectively mining higher-value zones.

The study will specifically investigate the possible presence of a discrete ilmenite (titanium) layer, as well as assess the occurrence of apatite-hosted phosphates to determine whether a discrete apatite-rich layer exists.

Additionally, the study will evaluate the potential for REEs, which are often associated with apatite mineralisation and are critical to modern technologies such as renewable energy systems, electronics and defence applications.

The company says it will provide further updates as required.

Ironveld CEO Kris Andersson says the Lapon plant reconfiguration continues to progress well, with key technical improvements either completed or currently being implemented.

Despite a minor four-day weather-related delay, he says the company is on track to deliver first shipments in mid-May, with sustained production expected by the end of the month.

Andersson says the company remains focused on ramping up production throughout this year.

“We are also highly encouraged by the potential of Layer 21.

“To better understand the full opportunity beyond what we already know, we have engaged Mintek to assess the asset's titanium, phosphate and REE potential.”