Tsodilo Resources Continues Its Collaboration with Botswana International University of Science and Technology

Executive Summary

• Tsodilo Resources Limited announced the continuation of its research collaboration with the Botswana International University of Science and Technology (BIUST) to evaluate the technical feasibility of producing pig iron and steel from its Xaudum Iron Project (XIF) using local Botswana resources.
• The company provided 18 meters of high-grade magnetite ore (45% Fe average) from hole L9600-11V-250 to BIUST for characterization, furnace design, and blending studies, with plans for bulk sampling of two tons of target material.
• The release highlights the strategic market opportunity for high-grade magnetite (+67% Fe) in the global steel industry's shift toward decarbonization, noting that such grades command price premiums and reduce greenhouse gas emissions compared to standard hematite fines.

Key Details

• Collaboration Scope: The project aims to apply a novel metallurgical coke blend in an experimental blast furnace, utilizing local Botswana iron ore, limestone, dolomite, and coal to explore technical feasibility for local resource utilization.
• Sample Provided: Tsodilo supplied 18 meters of XIF hole no. L9600-11V-250, containing an average Fe magnetite content of 45%.
• Testing Objectives: The ore will be characterized to aid in furnace design, furnace operations, and possible blending opportunities.
• Next Steps: Bulk sampling of two tons of each target sample will follow. An oven and experimental blast furnace will be designed and constructed at BIUST to produce metallurgical coke and pig iron. Product optimization will involve systematically changing operation parameters to test product quality.
• Metallurgical Performance: Previous Davis Tube Recovery results showed an average concentrate of 67.2% Fe, 4.2% SiO2, 0.5% Al2O3, and 0.07% P at a P80 grind size of 80 microns.
• Market Context: The release notes a global shift in the steel industry toward lower carbon emissions, driving demand for high-grade iron ore (>65% Fe) and DRI (Direct Reduced Iron) products. High-grade magnetite is exothermic, has higher iron content, lower impurities, and reduces fluxing requirements compared to standard 62% Fe hematite fines.
• Resource Estimates:
  • Block 1: CIM compliant Inferred Mineral Resource Estimate of 441 million tonnes (Mt) with an average grade of 29.4% Fe, 41.0% SiO2, 6.1% Al2O3, and 0.3% P.
  • Exploration Target: Extrapolated target of 5 to 7 billion tonnes at 15-40% Fe, generated by inversion modeling of ground magnetic geophysical data. This is conceptual and not yet a defined mineral resource.
• Project Location & Infrastructure: Located in the North-West District of Botswana, near the Namibian border. Proximity to the Trans-Zambezi Railway (linking to Walvis Bay port) and the proposed Mucusso line (linking to Angola's Namibe Port).
• Development Scenarios (PEA): The Preliminary Economic Assessment is evaluating:
  • Small-scale startup options (e.g., Ferrosilicon production).
  • Mid-size scenarios (concentrator plant with rail transport to port).
  • Large-scale mining options (full-scale concentrator with potential pellet modification).
• Strategic Value: The project is viewed as a potential Tier 1 mining project and the first potential Tier 1 iron deposit in Botswana, supporting the country's economic diversification away from diamond dependence.

Notable Quotes

• Study Authors: "That Botswana's true sustainable wealth rests in its ability to transform its natural resources into high value finished products that can be competitively exported, thereby securing a healthy trade balance. The primary product of the target in this project is pig iron, from which steel will be produced, using a Basic Oxygen Furnace (BOF) or Electric Arc Furnace (EAF)."