Ironveld (LSE:IRON) shares slumped 8.0% to 0.023, after it said it expects first DMS‑grade magnetite deliveries in mid‑May and sustained production of 2,500 tonnes per month by June.
The Lapon Plant reconfiguration, operated by Daemaneng Minerals on Ironveld's behalf, has seen upgraded water supply and storage, relocation and optimisation of the sizing cyclone, installation of a new axial‑aligned magnetic separator expected to deliver DMS‑grade magnetite above 90% magnetic purity and replacement of product pipelines and storage with concrete floors completed on 28 April, and the programme is approximately four days behind schedule due to inclement weather, Ironveld said.
"We are also highly encouraged by the potential of Layer 21," Kris Andersson, Chief Executive Officer, said.
Daemaneng expects first deliveries under the existing offtake contract during May and sustained production at 2,500 tonnes per month by June, and Ironveld said it has several offtake options at advanced stages but will not sign new agreements until production capacity is established.
Ironveld has engaged Mintek to perform a mineralogical study on two Layer 21 boreholes to test for a discrete ilmenite (titanium) layer, apatite‑hosted phosphates and possible rare earth elements, with findings to inform mine planning and potential by‑product recovery.
