Australian Vanadium (ASX:AVL) has posted higher vanadium and iron concentrate grades towards the south of the newly combined projects in Western Australia.
The $129.12 million market capitalisation company says results, generated from work being undertaken to integrate both Australian Vanadium’s namesake and Technology Metals Auatralia’s Murchison Technology Metals Project as part of an optimised feasibility study, supports further investigation of a commercial scale ilmenite product.
Vanadium concentrate grades for Block 70 average up to 1.6% vanadium oxide (V2O5) consistent with the results from the Yarrabubba deposit (Block 80).
Higher iron grade in concentrate averages greater than 60% for Block 70.
According to the Perth-based vanadium developer, results suggest a ‘high-grade’ project can be optimised across an unconstrained southern strike extent, with potential for increased economic benefits.
CEO Graham Arvidson says: “This testwork bolsters our view that a long-life, high-grade integrated project at the southern areas of the combined project can be defined quickly based on historical work by removing the constraints from TMT’s previously landlocked Yarrabubba deposit and adding to it similar mineralisation within the historical AVL deposit.
The team will use this testwork within the broader integration studies, with the aim of improving the economics of the project via reduced capital and operating costs.”
Prior to the merger with Australian Vanadium, Technology Metals Australia owned tenements at the northern end and a small block at the southern end of the singular ore body, known as the Yarrabubba deposit, which houses both company’s projects.
Yarrabubba was entirely surrounded by Australian Vanadium’s tenements, ‘significantly’ constraining development by Technology Metals.
Australian Vanadium is a resource company seeking to offer investors a unique exposure to all aspects of the vanadium value chain – from resource through to steel and energy storage opportunities.
As of December 2023, the company had $24.6 million cash at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Australian Vanadium
