A new vanadium mine on a 2000 ha property in Maracas city, Bahia state, Brazil, some 250km southwest of Salvador, is expected to be commissioned in the 3rd quarter of 2010. Feasibility studies estimated reserves at 13-m t grading at 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. This deposit is to be mined by open pit method. Strip ratio over the 13 years mine life averages 2.23:1 for 29.1 Mt waste rocks. Mining would be carried out by contractors for pre-stripping and the first two 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 would average 1.94% and production would reach 4520 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 1748 t from year 14 to 22.The process flow sheet comprises several 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-m, including a contingency of US$45.8-m. The estimate has an intended level of accuracy of +/-15 percent.

Maracas has is the world's highest known grade vanadium deposit:

22.5 million tonnes of 1.27% V205 (NI 43-101 Measured and Indicated Resource)
13.1 MT grading 1.34% vanadium pentoxide (V205) (NI 43- 101 Mineral Reserve)
140-m lbs of potential FeV (circa $5 billion in gross metal value)
estimated payback of 1.9 years; after tax cash flows of $1.329-b
23 year production plan
IRR 43.9%, NPV $489 Million (@ 10% discount)
Off-take agreement with Glencore International
Target production in Q4 2010
Strong PGM exploration upside
Open pit with low strip ratio of 2.23:1
Recovery of 71.6%

Note to other mines and establishments: If your findings can prove different figures in favour of your own, please supply audited results and figures to replace current publication. [submit here]