A prefeasibility study (PFS) into the Richmond-Julia Creek oxide vanadium project, in Queensland, has estimated that the project could produce some 790 000 t/y of concentrate, producing 12 701 t of vanadium oxide flake, over an initial mine life of 25 years.
ASX-listed Horizon Minerals on Wednesday reported that joint venture (JV) partner Richmond Vanadium Technology had earned a 75% interest in the project by completing the feasibility work.
The PFS estimated that the project would require a capital investment of A$242.2-million, and based on a price of $9.60/lb, would have a net present value of A$613-million, a payback of 3.2 years and an internal rate of return of 38%.
Operating costs of A$8.66/lb include mining, administration, concentration onsite, transport and refining offshore.
“The Richmond-Julia Creek project is one of the largest undeveloped oxide vanadium resources in the world and can produce globally significant supply for both the steel and emerging energy storage markets,” said Horizon MD Jon Price.
“Restricted supply and increased demand have resulted in a sustained increase in prices with the initial 25-year mine life at Lilyvale generating a net present value of A$613-million at current spot prices.”
“What sets this project apart is its minimal impact on the environment with shallow openpit mining, progressive rehabilitation, low capex, conventional processing and first quartile operating costs. We look forward to the completion of the definitive feasibility study (DFS) in 2022 and believe the project can have significant economic development benefits to regional Queensland and the national economy.”
In parallel with the DFS, discussions will also continue with potential offtake partners in conjunction with assessing the way forward in relation to the project, including financing or assessing other options for maximising shareholder benefit from the project, Horizon said.
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