STRATEGIC TENEMENT ACQUISITION TO BOOST GABANINTHA
- ACQUISITION OF STRATEGIC TENEMENT ADJACENT TO PROPOSED MAIN PIT AT THE NORTHERN BLOCK.
- ENHANCES OPTIONALITY AND FLEXIBILITY WITH REGARD TO DEVELOPMENT OF GABANINTHA.
- COMPLIMENTS THE ROBUST FINDINGS OF THE RECENTLY COMPLETED GABANINTHA PRE-FEASIBILITY STUDY.
- DEFINITIVE FEASIBILITY STUDY PLANNING WELL PROGRESSED.
Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to announce the acquisition of additional tenure adjacent to the Northern Block of tenements (“Northern Block”) at its 100% owned Gabanintha Vanadium Project (“Gabanintha” or “Project”).
The Company’s recently completed pre-feasibility study (“PFS”) was based on the Northern Block Indicated Mineral Resource estimate of 21.6 Mt at 0.9% V2O5 and confirmed Gabanintha as a high value, relatively low risk and technically strong project1. This study also delivered the Company’s maiden Probable Ore Reserve of 16.7 Mt at 0.96% V2O5. The total Gabanintha Project comprises a global Indicated and Inferred Mineral Resource of 119.9 Mt at 0.8% V2O5.
The acquired tenement, P51/2930 (the “Tenement”), covers an area of 109.2 Ha and adjoins the Northern Block to the west of the proposed Main Pit (see Figure 1). This tenement acquisition provides the Company with a high degree of optionality with regard to the development of the Project; providing scope for a more centrally located processing plant and/or additional areas for the location of waste/low grade ore stockpiles and other associated infrastructure. A range of development options incorporating the additional landholding will be fully investigated during the Definitive Feasibility Study (“DFS”).
Planning for the DFS is well underway, with the level of detail and high quality of the PFS enabling a rapid transition to the DFS, which will commence in the current quarter.
Managing Director Ian Prentice commented; “This strategic tenement acquisition provides a high level of optionality and flexibility to the Gabanintha Project as we progress through the next stage on the pathway to developing this globally significant vanadium deposit”.
1 – Technology Metals Australia – ASX Announcement dated 21 June 2018, TMT Delivers Robust Gabanintha Pre-Feasibility Study; Direct Progression to Definitive Feasibility Study.
TMT DELIVERS ROBUST GABANINTHA PRE FEASIBILITY STUDY; DIRECT PROGRESSION TO DEFINITIVE FEASIBILITY STUDY
- PRE-FEASIBILITY STUDY CONFIRMS GABANINTHA AS A HIGH VALUE, RELATIVELY LOW RISK AND TECHNICALLY STRONG PROJECT.
- STUDY BASED ON INDICATED MINERAL RESOURCE COMPONENT (21.6MT AT 0.9% V2O5) OUT OF GLOBAL MINERAL RESOURCE OF 119.9MT AT 0.8% V2O5.
- DELIVERS MAIDEN PROBABLE RESERVE OF 16.7MT AT 0.96% V2O5.
- PROJECT METRICS COMPARE VERY FAVOURABLY TO GLOBAL PEERS.
Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to announce the results of the pre-feasibility study (“PFS”) on its 100% owned Gabanintha Vanadium Project (“Gabanintha” or “Project”).
Details of the PFS are attached, including the PFS Report Executive Summary as an Appendix to this release, with key highlights summarised in the table below.
Managing Director Ian Prentice commented; “This is an outstanding result for the technically robust, extremely high quality Gabanintha Project in a vanadium market environment that is desperate for injection of new production, with considerable upside expected from the work to be completed during the upcoming Definitive Feasibility Study
GABANINTHA PRE-FEASIBILITY STUDY
Wave International (“Wave”), an independent resource development / engineering consultant has, as the lead consultant supported by a range of industry leading consultants with considerable expertise in their fields, completed the Gabanintha PFS on behalf of the Company. Wave was engaged to manage the PFS with the scope to develop the processing flowsheet, complete basic plant engineering and site / infrastructure assessments, specify and quote on major long lead items, provide capital and operating cost estimates to the pre-feasibility study and generate a Project financial model. The PFS has been developed to a confidence level of -15% to +25%. The other consultants involved in the preparation of the PFS included:
- METS Engineering for ongoing metallurgical testwork, product assessment and mineral processing.
- CSA Global for resource and mining study work, involving the generation of conceptual open pit designs, a preliminary mining and production schedule, mining capital and operating cost estimates, and initial ore reserve estimate, and
- Integrate Sustainability for environmental, heritage, health, safety and statutory approvals advice and support.
The PFS confirms the Project to be a high value, relatively low risk and technically strong development opportunity for the Company. Given these outcomes, the Board has agreed to proceed immediately with the commencement of a Definitive Feasibility Study.
The PFS mining and production schedule is based on the Ore Reserve of 16.7 Mt at a mined grade of 0.96% Vanadium Pentoxide (V2O5), which is contained within the currently defined Indicated Mineral Resource of 21.6 Mt at 0.9% V2O5 in the Northern Block of tenements. The total Gabanintha Project comprises a global Indicated and Inferred Mineral Resource of 119.9 Mt at 0.8% V2O5.
The full amount of mineralisation to be mined in the PFS schedule is 19.2 Mt at 0.96% V2O5 with the inclusion of 13% Inferred Mineral Resources which are not anticipated to impact materially on the project economic viability. The mine plan revolves around the development of two open pits; the North Pit and the Main Pit.
It is anticipated that the Project will commence in 2021, ramping up to an approximately 13,000 tpa high purity (+99%) V2O5 operation with a rapid capital payback of slightly over three years. The low risk of this WA-based project allows the assumption of a discount rate of 10%, providing an anticipated pre-tax NPV in the region of $1,277 million over a projected 13 year mine life, with an IRR of 55%.
Table 1 below provides the material physical assumptions and outputs on which the PFS and Ore Reserves on the wholly owned Gabanintha Project is based.
Table 2 provides the key financial assumptions and forecasts used in the PFS and the resultant financial outputs.
HIGH PURITY +99% VANADIUM PENTOXIDE PRODUCT CONFIRMED AT GABANINTHA
- DOWNSTREAM PROCESSING TESTWORK DELIVERS V2O5 PRODUCT WITH HIGH PURITY IN EXCESS OF 99%.
- CONFIRMED CONVENTIONAL SALT ROAST / WATER LEACH PROCESSING IS ABLE TO DELIVER A HIGH PURITY VANADIUM PRODUCT AT GABANINTHA.
- TESTWORK ON LARGER COMPOSITE SAMPLES UNDERWAY TO GENERATE FINAL PRODUCT FOR END USERS.
- PRE-FEASIBILITY STUDY ON TRACK FOR DELIVERY IN JUNE 2018.
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 final stages of the initial downstream processing testwork, involving the precipitation of ammonium metavanadate and subsequent generation of high purity V2O5 product, has now been completed.
This work has delivered a V2O5 product with a purity in excess of 99% from an ammonium metavanadate precipitate that recovered ~97.4% of vanadium from a leach solution generated from salt roasting of magnetic concentrate from Gabanintha.
Previous testwork has definitively shown that the massive magnetite and fresh disseminated magnetite zones at Gabanintha are amenable to conventional salt roast / water leach processing with very high recoveries of vanadium in to solution at significantly less salt addition than other conventional salt roast leach operations.
Gabanintha hosts a Global Mineral Resource (“Global Resource”) estimate, reported in accordance with the JORC Code 2012, of 119.9 Mt at 0.8% V2O5 and 9.7% TiO2 including an outstanding high grade component of 55.0 Mt at 1.1% V2O5 and 12.7% TiO2 and an Indicated Mineral Resource of 21.6 Mt at 0.9% V2O5 and 11.2% TiO2.
Managing Director Ian Prentice commented; “This is a very exciting outcome for the Company, confirming the extremely high quality of the Gabanintha vanadium deposit and the scope to deliver a premium product direct from the mine gate.”
METALLURGICAL TESTWORK – DOWNSTREAM PROCESSING
Metallurgical testwork completed by the Company to date, under the supervision of the Company’s metallurgical consultant METS Engineering Group Pty Ltd (“METS”) and based on representative samples collected from diamond drilling completed in 2017, 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.
Downstream processing testwork, focused on the extraction of vanadium pentoxide (V2O5) from the magnetic concentrates utilising salt roast / water leach processing has definitively shown that magnetic concentrates produced from all zones of the massive magnetite and the fresh disseminated magnetite are amenable to this conventional processing route. This work demonstrated very high recoveries of vanadium in to solution at significantly less salt addition than other conventional salt roast leach operations. This lower salt (reagent) requirement is interpreted to be due to the very low silica grades present in the magnetic concentrates, a very important factor for the efficient and effective salt roasting of vanadium concentrates.
Testwork, conducted by ALS Metallurgy Services, has now progressed to precipitation of ammonium metavanadate (AMV) from a leach solution and the subsequent precipitation of a V2O5 final product. For this phase of work a sample of blended magnetic concentrate, representing approximately 85% massive fresh and 15% massive transitional material, was mixed with sodium carbonate and roasted for 2 hours at 1,200°C. The roasted calcined material was then water leached to ensure complete dissolution of sodium vanadate to the leach solution.
Desilication of the leach solution, which was completed with minimal vanadium loss, generated a clean solution for the AMV precipitation step. The AMV precipitate, which was filtered from the remaining leach solution, delivered a >99% recovery of vanadium. The AMV precipitate was then calcined to generate a final V2O5 product (see Figure 1), with a purity in excess of 99%. Impurities within the final V2O5 consist of a small volume of alumina, chromium, potassium and sulphur.
APPOINTMENT TO POSITION OF MANAGING DIRECTOR
The Board of Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to announce that Mr Ian Prentice has been appointed as the Managing Director of the Company, effective immediately.
Mr Prentice was previously appointed to the Board as an Executive Director from the date of incorporation and has been instrumental in delivering the successful exploration program and business development activities.
Mr Prentice has extensive global resource industry and equity capital markets experience, with a proven track record of high quality corporate management and technical excellence. His broad ranging 30 year-plus career extends from exploration and operational roles across a variety of commodities to the listing and management of ASX-listed resource companies. Ian has served as a Director for a number of ASX-listed resource companies, with activities ranging from exploration and project acquisition in Asia and Africa through to gold production in Australia. Mr Prentice is a Member of the Australasian Institute of Mining and Metallurgy and holds a Bachelor of Science (Geology) from the University of Western Australia.
In accordance with Listing Rule 3.16.4, the Company advise Mr Prentice’s key terms of appointment are as follows:
Commencement Date: 11th May 2018
Remuneration: $180,000 per annum (inclusive)
Termination: 3-month notice.
Chairman, Michael Fry commented: “The appointment to the position of Managing Director of TMT is further validation of Ian’s commitment to the Company and its shareholders. The rapid and successful delivery of the Gabanintha Global Resource of 119.9 MT at 1.1% V2O5, along with the progression of the Pre-Feasibility Study, demonstrates the strategic progress the Company has made in such a short period of time”.
For, and on behalf of, the Board of the Company,
Director and Company Secretary
Technology Metals Australia Limited