Date: Dec 19, 2018
Australian Vanadium has put a $US354 million ($493 million) price tag on developing its high-grade Gabanintha project near Meekatharra.
Releasing its pre-feasibility study on an open pit and processing plant this morning, the Perth-based hopeful revealed a maiden ore reserve of 18.24 million tonnes that will produce 900,000 tonnes a year of 1.40 per cent vanadium pentoxide at an average yield of 60 per cent.
An on-site refinery will turn out about 10,206tpa of the steel-hardening ingredient over an initial mine life of 17 years.
But the price tag, only a few million dollars shy of a $US360 million estimate released in September, has again spooked investors, with the company’s shares shedding almost 18 per cent in early trade to 2.3¢.
It had regained some ground by 8.45am but was still down 14.3 per cent.
Managing director Vincent Algar said the study was a major step towards bringing the project online.
“Announcing a maiden ore reserve is a key milestone, and further embeds the project’s low-risk mineral resource and strong economic potential,” Mr Algar said.
