HIGH PURITY +99.5% V2O5 PRODUCT CONFIRMED AT GABANINTHA
- PRODUCT GENERATION WORK DELIVERS HIGH PURITY 99.53%1 V2O5.
- SUB-SAMPLES OF FINAL PRODUCT DISPATCHED TO A RANGE OF POTENTIAL VANADIUM END-USERS.
- TESTWORK CONFIRMS GABANINTHA MINERALISATION WELL SUITED TO PRODUCE HIGH QUALITY PRODUCT USING CONVENTIONAL SALT ROAST / WATER LEACH PROCESSING.
- DEFINITIVE-FEASIBIITY STUDY MAKING SIGNIFICANT PROGRESS AND IS ON TRACK TO BE DELIVERED IN JUNE QUARTER 2019.
Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to provide an update on metallurgical testwork activities at its Gabanintha Vanadium Project (“Gabanintha” or “Project”). The initial production generation testwork, involving the precipitation of ammonium metavanadate and subsequent generation of high purity V2O5 product from a ~60kg composite sample of high grade massive magnetite mineralisation, has now been completed.
This work has delivered a V2O5 product with a purity of 99.53% from an ammonium metavanadate precipitate that recovered >98% of vanadium from a leach solution generated from salt roasting of the magnetic concentrate from Gabanintha.
This work further confirms that the wholly owned Gabanintha deposit is amenable to producing very high purity V2O5 using conventional salt roast / water leach processing, with relatively low reagent consumption and without the requirement of additional costly contaminant removal steps. Both the solution and final product produced from this testwork are regarded as extremely clean and low in solution impurities.
Gabanintha hosts an Ore Reserve of 16.7 Mt at 0.96% V2O5, contained within an Indicated Mineral Resource of 21.6 Mt at 0.9% V2O5 in the Northern Block. Ongoing drilling as part of the DFS is focused on expanding the Indicated Mineral Resource within the current Global Mineral Resource estimate of 119.9 Mt at 0.8% V2O5 and 9.7% TiO2.
Managing Director Ian Prentice commented; “To achieve greater than 99.5% purity of V2O5 product from this phase of testwork is a very exciting achievement for the Company and I look forward to presenting these results to interested parties during my current visit to China”
METALLURGICAL TESTWORK – PRODUCT GENERATION
A program of metallurgical testwork designed to generate final product for end-users has been completed under the supervision of the Company’s metallurgical consultant METS Engineering Group Pty Ltd (“METS”). This round of testwork was based on representative samples of the high grade massive magnetite zone from the diamond drilling completed in the 2017 drilling campaign.
Testwork has definitively shown that magnetic concentrates produced from all zones of the massive magnetite and the fresh disseminated magnetite are amenable to conventional salt roast / water leach processing. The magnetic concentrates delivered very high vanadium recoveries and rejection of gangue minerals from the high grade fresh and transition material and the disseminated medium grade fresh material. Vanadium grades reporting to the magnetic concentrate ranged from 1.27 to 1.34% V2O5 for these ore types, with weight recoveries ranging from 85.6% for the massive high grade fresh composite to 33% for the disseminated medium grade fresh composite.
Previous downstream processing testwork confirmed the high quality of the Gabanintha ore, delivering final V2O5 product with a purity in excess of 99% (see ASX announcement dated 31 May 2018).
The recently completed product generation testwork, conducted by ALS Metallurgy Services, used approximately 60kg of combined transitional and fresh high grade massive magnetite mineralisation, which generated approximately 49kg of magnetic concentrate after being processed through triple pass LIMS at 1200 Gauss. The composited magnetic concentrate was batch salt roasted, with the resultant calcine product water leached to ensure complete dissolution of sodium vanadate to the leach solution.
The leach solution containing the vanadium was then subjected to desilication, generating a cleaner ammonium metavanadate (AMV) feed solution than the previous downstream processing testwork. AMV precipitate was filtered from this feed solution, with >98% of the vanadium recovered in to a high purity precipitate. The AMV precipitate was then calcined to generate a final V2O5 product (see Figure 1), with a calculated purity of 99.53% based on the sum of impurities method. Impurities within the final V2O5 consist of a small volume of alumina, chromium, copper, potassium and magnesium.
GABANINTHA DFS UPDATE
- STAGE 1 DRILLING COMPLETED AT NORTH PIT AREA.
- ALL HOLES INTERSECTED BROAD ZONES OF HIGH GRADE MASSIVE MAGNETITE MINERALISATION AT DOWN HOLE DEPTHS OF UP TO 195M.
- DRILLING HAS CONFIRMED THE VERY SHALLOW OXIDATION PROFILE PROVIDING EARLY ACCESS TO HIGH YIELDING HIGH GRADE MINERALISATION AND POTENTIAL FOR STEEPER PIT WALLS.
- ACQUIRED THE 1.5% NET PROFIT INTEREST OVER E51/1510 AND P51/2785, THE TENEMENTS THAT COVER THE PROPOSED NORTH PIT AND PROJECT INFRASTRUCTURE.
- THIS ACQUISITION IS VERY POSITIVE FOR THE FUTURE DEVELOPMENT AND ECONOMICS OF THE PROJECT.
Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to provide an update on progress of the definitive feasibility study (“DFS”) at its Gabanintha Vanadium Project (“Gabanintha” or “Project”).
Stage 1 drilling has been completed in the North Pit area, consisting of 9 holes for a total of 1,659m, divided in to 521m of RC drilling and 1,138m of diamond drilling. Holes targeted the depth extension of the Mineral Resource, provided geotechnical data for the proposed open pit walls and generated additional sample for metallurgical testwork.
The Company has also completed the acquisition of the 1.5% net profit interest (“Royalty”) over E51/1510 and P51/2785, the tenements that cover the proposed North Pit and associated supporting infrastructure. The consideration for the acquisition consists of fully paid TMT shares upon the satisfaction of a number of milestones. The acquisition of the Royalty is very positive for the future development, and enhances the economics, of the Project.
The DFS has made significant progress since formal commencement on Tuesday 31 July 2018, maintaining the momentum and focus generated through the delivery of the pre-feasibility study.
Managing Director Ian Prentice commented; “The stage 1 drilling data has confirmed our belief in the importance of the North Pit in the overall development of the Gabanintha Vanadium Project, with the acquisition of the Royalty over this area very positive for the planned development of this globally significant vanadium project”.
PROJECT ENHANCEMENT OPPORTUNITIES
A number of significant opportunities have been identified to enhance the results of the Project prefeasibility study (PFS), including
- Upgrading more of the Inferred Mineral Resources to the Indicated category, thereby increasing the mine life;
- Conducting a detailed geotechnical assessment, focussed on the footwall of the designed pits, allowing steeper pit walls and significantly reducing the overall strip ratio; and
- Optimising the open pit mine scheduling to ensure maximum financial returns with staged open pit development and early access to higher yielding ore.
The stage 1 drilling program, which consists of approximately 6,600m of drilling across the Northern Block of tenements and the Southern Tenement, is designed to provide the initial data in support of the Project enhancement opportunities.
STAGE 1 DRILLING PROGRAM
The stage 1 drilling program is progressing well, with all stage 1 holes now completed in the North Pit area (see Figure 1). This drilling consisted of 9 holes for a total of 1,659m, divided in to 521m of RC drilling and 1,138m of diamond drilling.
This program is designed to:
- extend the Northern Block Mineral Resource estimate both along strike and at depth to increase the overall resource size and the Indicated Mineral Resource category / Probable Reserve estimate (see Figure 1);
- upgrade, and convert part of, the Southern Tenement Inferred Mineral Resource estimate to the Indicated Resource category;
- provide geotechnical data, in particular for the footwall portions of the designed pits, to provide sufficient data to enable a steepening of the designed open pit walls, thereby dramatically decreasing the overall strip ratio; and
- generate additional diamond core sample for the ongoing metallurgical testwork program, including the generation of final product to be provided to potential vanadium end-users.
All holes targeting the depth extension of the Mineral Resource estimate in the North Pit area intersected broad zones of massive magnetite mineralisation, with down hole depths of up to 195m to the top of the mineralisation. Geotechnical data is being collected for each of the holes completed in the North Pit area, with eight (8) holes intersecting the footwall zone and one (1) hole drilled in to the western proposed pit wall area. Drilling in the North Pit area has confirmed the previously identified very shallow oxidation profile, which has positive implications for early access to higher yielding high grade mineralisation and the potential for steeper pit walls than included in the pre-feasibility study (“PFS”) proposed open pit designs.
Drilling is continuing in the Central Pit area (see Figure 1) and in the Southern Tenement. The RC drilling component of the stage 1 program is on track to be finished by mid September, with the diamond drilling component expected to be completed in late September.
Preliminary assessment of the geotechnical data from drilling in the North Pit is expected to be available in mid to late September, with initial assay results from the North Pit area RC drill holes expected to be available in October 2018.
COMMENCEMENT OF DFS AND DRILLING AT GABANINTHA
- DEFINITIVE FEASIBILITY STUDY COMMENCED ON 31 JULY 2018.
- HIGH QUALITY TEAM OF EXPERIENCED INDUSTRY EXPERT CONSULTANTS ENGAGED TO DELIVER DFS IN JUNE QUARTER 2019.
- STAGE 1 FOLLOW UP DRILLING PROGRAM COMMENCED ON 5 AUGUST 2018.
- DRILLING DESIGNED TO DELIVER GEOTECHNICAL DATA, EXTEND INDICATED RESOURCE AND PROVIDE ADDITIONAL SAMPLE FOR METALLURGICAL TESTWORK.
- STAGE 1 PROGRAM CONSISTS OF ~6,600M OF DRILLING, DIVIDED BETWEEN 2,700M OF DIAMOND DRILLING AND 3,900M OF RC DRILLING.
Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to announce the commencement of the definitive feasibility study (“DFS”) at its Gabanintha Vanadium Project (“Gabanintha” or “Project”). The commencement of the DFS follows the delivery in June 2018 of the pre-feasibility study (“PFS”) on the development of the Gabanintha Vanadium Project, based on the Indicated Mineral Resource of 21.6 Mt at 0.9% V2O5 in the Northern Block of tenements, which confirmed the Project to be a high value, relatively low risk and technically strong development opportunity1.
The level of detail and high quality of the PFS has enabled this rapid transition to the DFS. The DFS is scheduled for completion in the June quarter 2019.
The stage 1 drilling program, which has commenced in step with the commencement of the DFS, is designed to provide the initial data in support of the Project enhancement opportunities identified in the PFS, such as upgrading the Indicated Resource, geotechnical assessment aimed at enabling steeper pit walls and the generation of additional diamond core sample for the ongoing metallurgical testwork program.
Managing Director Ian Prentice commented; “This is a very exciting time for the Company as we transition from the outstanding PFS result in to the DFS stage, aimed at rapidly progressing this globally significant vanadium Project along the development pathway”.
1 – Technology Metals Australia – ASX Announcement dated 21 June 2018, TMT Delivers Robust Gabanintha Pre-Feasibility Study; Direct Progression to Definitive Feasibility Study.
DEFINITIVE FEASIBILITY STUDY
The Gabanintha pre-feasibility study (“PFS”) completed in June 2018, based on the Indicated Mineral Resource contained within the Northern Block of tenements and developed to a confidence level of -15% to +25%, confirmed the Project to be a high value, relatively low risk and technically strong development opportunity. The outstanding results, level of detail and high quality of the PFS has enabled the Company to transition directly to the commencement of a definitive feasibility study (“DFS”) on the development of the Project.
The DFS formally commenced on Tuesday 31 July 2018 with the engagement of a high quality team of experienced industry expert consultants focused on delivering a high quality outcome in a time frame to support the rapid development of this outstanding project. The DFS is being managed on behalf of the Company by Wave International (“Wave”), an independent resource development / engineering consultant, as the lead consultant supported by a range of industry leading consultants with considerable expertise in their fields. The other consultants engaged in the preparation of the
- METS Engineering for ongoing metallurgical testwork, product assessment and mineral processing, supported by a range of accredited laboratories.
- CSA Global for resource and mining study work, supported by third party geotechnical engineering consultants, and
- Integrate Sustainability for environmental, heritage, health, safety and statutory approvals advice and support.
The DFS will:
- further develop the processing flowsheet,
- update plant engineering and site / infrastructure assessments, specifying and requesting tenders on major long lead items,
- revise open pit mine design incorporating updated geotechnical data and scheduling based on detailed geometallurgical data,
- provide an updated ore reserve estimate within and expanded global mineral resource,
- progress environmental and heritage studies in support of advancing mining lease grant and statutory approvals, and
- provide revised capital and operating cost estimates to a DFS level of accuracy and an updated Project financial model.
The Company and its team of experienced industry expert consultants are focused on delivering a very high quality DFS aimed at rapidly progressing the development of the globally significant Gabanintha Vanadium Project, with the DFS scheduled for completion in the June quarter 2019.
QUARTERLY ACTIVITIES REPORT & APPENDIX 5B FOR THE QUARTER ENDING 30 JUNE 2018
The Board of Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to provide an update on activities for the quarter ending 30 June 2018.
- Pre-Feasibility Study on the Gabanintha Vanadium Project confirmed the Project to be high value, relatively low risk and technically strong1 and supported a decision to progress directly to a Definitive Feasibility Study
- Project metrics compare very favourably to global peers with targeted annual production of up to 13,000 tpa of high purity (+99%) V2O5 over an initial 13 year processing life and estimated operating costs of US$4.27/lb V2O5.
- Capital expenditure estimate of A$380m with a rapid capital payback of <2.5 years from commissioning, including a 6 month ramp up period.
- Pre tax NPV of A$1.3 billion (A$850 million post tax) and IRR of 55% (43% post tax) using an average V2O5 price of US$13/lb and AUD:USD exchange rate of 0.75.
- Study was based on Indicated Mineral Resource component (21.6Mt at 0.9% V2O5) of Global Mineral Resource of 119.9Mt V2O5 and delivered a maiden Probable Reserve of 16.7Mt at 0.96% V2O5.
- Downstream processing testwork delivered a V2O5 product with a purity in excess of 99% and confirmed the Gabanintha ore is amenable to conventional salt roast / water leach processing.
- Acquisition of strategic tenement at Gabanintha enhances optionality and flexibility with regard to the development of the Project.
- Vanadium prices are approaching US$20/lb V2O5 with continued tightness of supply in China and demand growth from the new Rebar standards.
- As at the end of June 2018 the Company had cash of $2.71 million and as at 30 July 2018 the Top 20 shareholders held 56.8% of the fully paid ordinary shares.
Chairman, Michael Fry commented: “The delivery of the outstanding Pre-Feasibility Study result, combined with the confirmation of scope for a premium high purity vanadium pentoxide product and securing the strategic tenement at Gabanintha has the Company extremely well positioned as we progress to a Definitive Feasibility Study on one of the highest grade, best quality, large scale vanadium development projects in the World in a period of tightening vanadium supplies”.
During the June 2018 Quarter the result of the pre-feasibility study (“PFS”) on the development of the Gabanintha Vanadium Project was announced, confirming the Project to be a high value, relatively low risk and technically strong development opportunity. The PFS was based on the Indicated Mineral Resource of 21.6 Mt at 0.9% V2O5 in the Northern Block of tenements out of a global Indicated and Inferred Mineral Resource of 119.9 Mt at 0.8% V2O5. The PFS mining and production schedule of 19.2 Mt at 0.96% V2O5 includes 13% Inferred Mineral Resources and a mine plan based on the development of two open pits; the North Pit and the Main Pit.
It is anticipated that the Project production profile will ramp up to approximately 13,000 tpa high purity (+99%) V2O5 delivering a rapid capital payback of about 2.5 years from commencement of commissioning (including a six (6) month ramp up period). The Project delivers an anticipated pre-tax NPV in the region of $1,277 million over a projected 13 year mine life, with an IRR of 55%, and an estimated life of mine operating costs of US$4.27/lb V2O5. These project metrics compare very favourably to global peers.
Given these outcomes, the Board has resolved to proceed immediately with the commencement of a Definitive Feasibility Study (“DFS”).
The PFS also enabled the estimation of a maiden Probable Ore Reserve for the Project of 16.7Mt at 0.96% V2O5, representing a very high +77% tonnage conversion from Indicated Resource.
Downstream processing testwork has confirmed the Gabanintha ore as being amenable to conventional salt roast / water leach processing, delivering a final V2O5 product with a purity in excess of 99%. The solution produced from the leaching testwork is regarded as extremely clean and low in solution impurities. A larger composite sample is currently being processed with the aim of generating final product to be provided to potential vanadium end-users.