Date: Dec 19, 2018
Australian Vanadium’s (ASX: AVL) pre-feasibility study (PFS) at its flagship Gabanintha project has revealed healthy margins and a “world class” project, with Roskill director Jack Bedder claiming the long-term vanadium market fundamentals remain tight.
As part of the PFS, Australian Vanadium debuted a maiden reserve for Gabanintha, which sits at 18.24 million tonnes grading 1.04% vanadium pentoxide, with 9.82Mt at 1.07% vanadium pentoxide classified as proved and 8.42Mt at 1.01% vanadium pentoxide identified as probable.
Meanwhile, the PFS study estimates an 900,000 tonne per annum open pit operation to generate a 1.40% vanadium pentoxide magnetite concentrate, with an average 60% yield.
According to the company, the 60% average mass yield is “exceptionally high” compared to other operating vanadium mines and facilitates a compact and effective crushing and milling operation.
Australian Vanadium plans to construct a vanadium pentoxide refinery at the project, which would produce about 22.5 million pounds of vanadium pentoxide flake annually for 17 years.
“By completing this PFS on Gabanintha, we have taken a major step towards bringing our world-class project into production,” Australian Vanadium managing director Vincent Algar said.
“Announcing a maiden ore reserve is a key milestone and further embeds the project’s low risk mineral resource and strong economic potential.”
“The PFS includes details that allows us to understand and design a long-life, low cost vanadium pentoxide and cobalt concentrate production facility,” Mr Algar noted.
