FAR: First Commercial Production And Sales Of Calcium Molybdate

Ferro-Alloy Resources Limited (LSE: FAR), the vanadium mining and processing company with operations based in Southern Kazakhstan, is pleased to announce that it has made its first commercial production and sale of calcium molybdate.

Calcium molybdate (CaMoO4) is used in the production of ferromolybdenum, molybdenumcontaining alloys, ceramics and direct alloying of steel and alloys with molybdenum in electric arc furnaces. The molybdenum content of calcium molybdate is sold on the pricing basis of molybdic oxide less a small discount.

The molybdenum will be extracted as a by-product from the same raw materials that the Company buys for the extraction of vanadium so there will be no additional raw-material costs. The quantity which the group can produce is dependent upon the grades of material being treated but is expected to be up to 14 tonnes of calcium molybdate (containing around 10 tonnes of molybdic oxide) per month. Some interruptions to production in the next few months are expected due to on-going Covid-19 restrictions and until the new connection to the adjacent high-voltage power line is made, expected in Spring of 2021, which is expected to significantly reduce down-time caused by power outages and instability. Nevertheless, the impact on revenues and earnings will be significant in the context of the current processing operation.

Although the immediate target is to produce calcium molybdate as a by-product from existing raw-materials, the Company now has the option to source molybdenum-bearing raw-materials with molybdenum is the primary metal where it is more profitable to do so.

The Company is in discussions with potential off-takers and expects to sign a long-term contract shortly.

Nick Bridgen, CEO, said: “I am extremely pleased with the speed at which we have been able to make our first commercial production and sale of calcium molybdate. This is another step in our plan for the development of the current small-scale operation while plans for the development of the Balasausqandiq project continue. It will bring a significant increase in revenue with only a small impact on costs and will be highly complementary to the record levels of production seen in recent months.”

www.ferroalloynet.com