AVL: Pilot Study Programme Confirms High Vanadium Recoveries And Concentrate Quality

DFS pilot test results verify multiple positive outcomes for crushing, milling and beneficiation circuit (CMB) design for The Australian Vanadium Project in Western Australia.

KEY POINTS

* Rigorous pilot-scale test work has validated an optimised beneficiation flowsheet.

* Test work focused on processing of two likely ore feed blends, representative of the average life-of-mine and the first five years of forecast process feed.

* Findings confirm the Project’s high vanadium recoveries and consistent excellent concentrate qualities.

→ Concentrate generated from life-of-mine average feed blend achieved 76% vanadium recovery, at a grade of 1.37% V2O5 and 1.68% SiO2.

→ Year 0-5 pilot testing achieved 69% vanadium recovery to concentrate at 1.39% V2O5 and 1.83% SiO2.

* High vanadium recovery and low silica content represent unique value opportunities for AVL in ongoing economic studies.

* Pilot work for roasting; water leaching and high purity vanadium extraction underway with partners Metso, ALS and ANSTO to define final processing circuit design for the Project.

* AVL’s rigorous approach to test work significantly reduces future risk, by ensuring the process will work as intended when built at full scale, increasing attractiveness to potential Project investors.

Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to announce that it has confirmed world-leading high vanadium recoveries and consistent excellent concentrate quality in its completed 20 tonne pilot scale testing and validation of the CMB flowsheet. Work has confirmed that

the concentrator circuit is capable of treating both of the likely production ore blends and has delivered robust results throughout typical unit operations.

The Company tested two blends which were most likely to be available during mining operations. Blend 1 (the Y0-5 pilot blend), represents the average first 5 years of process feed, and Blend 2 (the LOM pilot blend) represents the life of mine feed to the concentrator.

Managing Director, Vincent Algar comments: ‘The progress made by the processing team in the completion of the CMB pilot has been significant and ground-breaking. This is outlined by the excellent results we have achieved with vanadium grade and recovery and by lowering our concentrate silica content. The benefits of our thorough test work programme have already begun to show. The work increases the Company’s capabilities in vanadium extraction and builds confidence in delivering high vanadium recovery when in production.’

‘A key indicator of success in bringing a project into production is a full understanding of the ore body and how it behaves and the processing methodology that will be used. Test work begins at bench scale in the laboratory and once the process has been proved at that scale, a larger set of tests are undertaken to ensure that when the project is built at full scale it will work properly. During the test work at bench and pilot scale lessons are learnt and modifications are made to the circuit and retested and refined until the process is ready for full scale. This is the reason that AVL is taking so much care to do this work properly and reduce risk down the track.’

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