YOUANMI VANADIUM PROJECT METALLURGICAL TESTWORK AND EXPLORATION UPDATE
Venus Metals Corporation Limited (“Venus” or the “Company”) is pleased to announce an update on the preliminary metallurgical testwork on historical diamond drill core samples from the Youanmi Vanadium JORC 2012 Resource located at Youanmi, Western Australia.
- LIMS results correlated extremely well with the DTR results
- Recovery of vanadium up to 92.8% in the fresh composite
- Recovery of vanadium of 83.1% into a concentrate with a combined silica and alumina grade of less than 4.5%
- These preliminary results are broadly comparable with those of other vanadium deposits in Australia
- A strong aeromagnetic feature with a strike length of c. 14km south of the vanadium resource may host significant vanadium mineralization as demonstrated by historical RC drilling along a single traverse with reported high‐grade vanadium (refer WAMEX reports A58498 and A59196). The aeromagnetic feature is a potentially large target* (refer ASX release dated 6 Feb 2015) and exploration drilling is planned to commence soon.
Venus Metals Managing Director Matthew Hogan commented: “We are very pleased with the progress of the metallurgical testwork and its outcomes which are excellent. While this work continues, we plan to commence exploration drilling at the large aeromagnetic feature which has an estimated exploration target potential* of more than 1 billion tonnes of vanadium ore.”
*An estimate of the exploration target potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade, which are conceptual in nature, relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The Company appointed METS Engineering Group (METS) to develop a series of metallurgical tests suitable for the historic diamond core to assess the response of this ore to the conventional magnetic concentration methods used for similar vanadium deposits. The aim of this testwork was to:
a) assess the ores physical properties to determine the ease of crushing and grinding and;
b) assess the upgrade of vanadium into a magnetic concentrate and to assess the quality of this magnetic concentrate produced
The testwork showed magnetic separation was able to produce a vanadium enriched magnetic concentrate whilst rejecting significant amounts of gangue constituents that were present in the ore. This testwork was carried out on two composites; oxide and fresh. These composites were made up from historical half core sections, selected to include a spread through the orebody and to target the average grade of high grade domains present within the orebody. The testwork was carried out at the Iron Ore Technical Centre, part of ALS Metallurgy, Wangarra, Western Australia. This stage of the testwork was focussed on improving vanadium recovery into the magnetic concentrate; it was undertaken on the triple pass Wet Low Intensity Magnetic Separation (LIMS) non‐magnetic fraction (LIMS carried out at P80 106 µm and 1200 Gauss), the results of which reconcile very well with the Davis Tube Recovery (DTR) results that were reported previously (refer ASX release 19 July 2018).
Two different methods were assessed for their capacity to improve the recovery of vanadium:
1. Rare Earth Drum (RED) at 3500 Gauss
2. SLon® Wet High Intensity Magnetic Separation (WHIMS) at two magnetic field intensities:
a. 2000 Gauss and b. 4000 Gauss
The magnetic concentrates produced (Plate 1) from these would then be combined with the LIMS magnetic concentrate to produce overall combined magnetic concentrates (Tables 1 and 2). Metallurgical testing is on‐going in order to assess methods of further improving the vanadium recovery from both composite and improving the vanadium grade of the concentrate produced, the results of which will be released when they become available.
QUARTERLY REPORT FOR PERIOD ENDING 30 JUNE 2018
Venus Metals Corporation Limited’s (VMC) activities conducted during the quarter ending 30th June 2018 includes:
YOUANMI GOLD MINE PROJECT: Transformational Deal for Venus
- VMC has entered into 2 option agreements to enable it to purchase the historical Youanmi Gold Mine (MLs), and all associated infrastructure and mine village.
- Widenbar and Associates (Widenbar) was commissioned by Venus to provide an updated JORC 2012 Mineral Resource Estimate for Youanmi Deeps and the Youanmi Near Surface Deposits.
- The total JORC 2012 Complaint Resources of both Underground Youanmi Deeps and Near Surface Deposits at Youanmi Gold Mine is now estimated as 1,190,600 ounces of gold (2.41 Million tonnes grading 8.5g/t for 657,900 ounces at the Underground Youanmi Deeps and 10.07 Million tonnes grading 1.65g/t for 532,700 ounces at Youanmi Near Surface Deposits) (refer ASX releases 28 May 2018 and 29 June 2018).
YOUANMI LITHIUM PROJECT: Venus aligns with Lepidico Ltd (ASX: LPD)
- VMC has entered into an option agreement with Lepidico explore for lithium mineralisation in lepidolite‐bearing pegmatites on VMC exploration licence E57/983. On signing Venus to receive $50,000 cash and $120,000 in Lepidico fully paid ordinary shares. Lepidico earns a 12‐month option to explore the tenement. During the option period the parties intend to negotiate the terms of a farm‐in and joint venture agreement on various indicative terms including Lepidico will have a 4‐year period to complete a full Feasibility Study leading to a Decision to Mine to earn an 80% interest in the Lithium Rights. Venus’s 20% will be free‐ carried to a Decision to Mine (refer ASX release 26 July 2018).
YOUANMI VANADIUM PROJECT: Metallurgical Testwork Delivers High‐Grade Vanadium Concentrates
Preliminary metallurgical testwork carried out on two composites (oxide and fresh) from diamond drill core samples of Youanmi Vanadium Project has delivered positive results:
- Vanadium‐enriched magnetic concentrate grades averaging 1.40% V2O5 have been obtained from fresh rock drill core assaying 0.71% V2O5 with concentrate grades up to 1.46% V2O5. Vanadium‐enriched magnetic concentrate grades averaging 1.32% V2O5 have been obtained from oxidised material assaying 0.67% V2O5. Concentrate grades were reported up to 1.37% V2O5. The test work has shown an excellent rejection of deleterious elements and compounds for downstream processing (refer ASX release 19 July 2018).
1. YOUANMI GOLD PROJECT:
Venus has entered into two option agreements to enable it to purchase the historical Youanmi Gold Mine (MLs), and all associated infrastructure and mine village (refer ASX release 28 May 2018). The Youanmi Gold Mine is located 480km to the northeast of the city of Perth, Western Australia. The project is accessed by the sealed Great Northern Highway for a distance of 418km from Perth to Paynes Find and thence for 150km by the unsealed Paynes Find to Sandstone road (Figure 1).
The Youanmi Gold Mine has historic production of 667,000 ounces of gold grading 5.42 g/t from open pit and underground operations conducted between 1908 and closure in 1997. Substantial indicated and inferred resources remain at the Youanmi Mine.
Venus exploration tenements cover c.650 km2 at Youanmi. They surround the Youanmi Gold Mine area, and include 40 km strike of prospective greenstone along the Youanmi Shear. Venus has identified multiple EM targets along the Youanmi Shear to the south (refer ASX release 23 March 2018).
Youanmi Deeps and Near Surface JORC2012 Compliant Mineral Resource Estimation:
Venus commissioned Widenbar to produce an updated JORC 2012 compliant resource estimates for the Youanmi Deeps and for the Youanmi Near Surface Deposits.
YOUANMI VANADIUM PROJECT
METALLURGICAL TESTWORK DELIVERS HIGH GRADE VANADIUM CONCENTRATES
The Directors of Venus Metals Corporation Limited (“Venus” or the “Company”) are pleased to announce the results of preliminary metallurgical testwork on eleven historical diamond drill core samples from the Youanmi Vanadium Project, Western Australia. This testwork was carried out on two composites; oxide and fresh to assess the response of these materials to conventional magnetic concentration methods used for similar vanadium deposits in Western Australia.
- Vanadium-enriched magnetic concentrate grades averaging 1.40% V2O5 have been obtained from fresh rock drill core assaying 0.71% V2O5. Concentrate grades up to 1.46% V2O5 were obtained.
- Vanadium-enriched magnetic concentrate grades averaging 1.32% V2O5 have been obtained from oxidised material assaying 0.67% V2O5. Concentrate grades were reported up to 1.37% V2O5.
- Importantly, the test work has shown an excellent rejection of deleterious elements and compounds for downstream processing
- Up to 98.6% rejection for silica
- Up to 99.0% rejection for calcium
- Up to 93.8% rejection for alumina
These results show that the V2O5 grade can be doubled for both the fresh rock and oxide Youanmi samples by producing a magnetic concentrate whilst rejecting significant amounts of gangue constituents present in the material.
The testwork also shows there is a relative ease to crushing the drill core material prior to magnetic separation as outlined by low to moderate comminution work indices.
Venus Metals Managing Director Matthew Hogan comments: “These excellent results give the Company great confidence to advance our Vanadium Project. Being able to produce a high-grade Vanadium concentrate of 1.40% V2O5 by a simple process is significant. The Company is advancing discussions in relation to new process technologies for our concentrate which involve potentially fully integrated battery development opportunities”.
Youanmi Vanadium Project Overview:
Venus’s Youanmi Vanadium deposit is located on tenement E57/986 (198.5 km2 ) which is about 42km southeast of the world class vanadium mine at Windimurra, owned by Atlantic, a subsidiary of Droxford International Limited (Figure 1). Youanmi Vanadium has good access to major infrastructure such as gas pipeline, roads and port facilities. Venus holds a 90% interest and the prospector holds a 10% interest in this tenement.
JORC 2012 Vanadium Resource:
Widenbar and Associates (“WAA”) has reviewed the historical drilling, sampling and assaying data and produced a high-grade Inferred Resource of 167.7 Million tonnes @ 0.41% V2O5, 7.52% TiO2 and 24.6% Fe (0.25% V2O5 cut-off) for a Vanadium Pentoxide resource of 683,000 tonnes (ASX release dated 6 Feb 2015). The diamond drill core samples used for the metallurgical test work are located within this high-grade inferred resource (Figure 2).
SIGNIFICANT INCREASE IN YOUANMI NEAR SURFACE DEPOSITS BOOSTING TOTAL JORC 2012 RESOURCES TO c. 1.2 MILLION OUNCES OF GOLD AT YOUANMI
The Directors of Venus Metals Corporation Limited (“Venus”) are pleased to announce that the total JORC 2012 Compliant Resource Estimate for the Youanmi Gold Mine has now increased significantly to 1,190,600 ounces of gold.
Widenbar and Associates (Widenbar) was commissioned by Venus to provide an updated JORC 2012 Mineral Resource Estimate for the Youanmi Near Surface Deposits which is shown in Table-1.
The previously announced (ASX release 28 May 2018) JORC 2012 Mineral Resource Estimate for the Youanmi Deeps is presented in Table-2.
*Venus confirms that it is not aware of any new information or data that materially affects the information included in the previous announcement and all material assumptions and technical parameters underpinning the estimates in the previous announcement continue to apply and have not materially changed.
Further upside potential has also been identified through developing a single “super pit” to connect all existing pits into one big open cut and through the additional gold exploration targets* below.
Widenbar and Associates (Widenbar) has estimated the following exploration targets (refer Tables 3& 4) and these are in addition to the JORC 2012 Resource Estimates already provided.
**An estimate of the exploration target potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade, which are conceptual in nature, relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Alan Birchmore has had extensive management experience in Australia, the UK, Europe, South America and the United States. His activities have included gold, diamonds, iron and supply base/marine support to the offshore oil and gas industry. As CEO of NYSE listed Bond International Gold Inc, he was responsible for a worldwide workforce of 3,300 employees, including the initial construction and start-up of the Super Pit at Kalgoorlie. Once commissioned, he negotiated the joint venturing of that operation with America's Homestake Gold. Through Northern Mining, he was a founding member through to development of what is now Argyle Diamonds.
Mr Birchmore was founding Chairman of St Barbara Mines (Gold) at its ASX listing and also led the listing of Mermaid Marine Australia Ltd as its Chairman. More recently he chaired United Minerals Corporation Ltd culminating in a scheme of arrangement with BHP Billiton to merge UMC's proposed iron ore mine, with the adjoining BHP Billiton Area C iron ore production hub. Mr Birchmore was appointed by the WA Government to Chair the Albany Port Authority and later Fremantle Ports.
Mr Matthew Hogan was formerly an Executive Director and Chief Executive Officer of United Minerals Corporation NL (UMC) which successfully discovered the Railway Iron Ore DSO deposit in the Central Pilbara. In February 2010 UMC was acquired by BHP Billiton for AUD$204 million.
Mr Hogan was instrumental in the ASX listing of Iron Ore Holdings Limited (IOH). IOH acheived a market capitilisation of over AUS $200 million and that company was ultimately acquired by BC Iron Limited for AUS $250 million. Mr Hogan was employed by the IOH and assisted the Board and management in that particular role.
Mr Hogans earlier career spanned sevaral decades in the stock broking industry as an authorised representative and where he specialised in corporate transactions at several firms including Hogan and Partners.
Executive Exploration Director
Bachelor of Science (Honors Geology)
Mr Fehlberg has a 50 years of successful experience in exploration for gold, base metals, diamonds and iron ore. Mr Fehlberg has been director of exploration for various ASX listed Companies since 1978, and during his career he has made numerous discoveries in all these commodities. In 1980 he led the drilling team for Spargos Exploration N.L. that discovered the depth extensions of the Bellevue Gold mine which was successfully brought into production.
In more recent times, Mr Fehlberg led the exploration team as Technical Director that discovered the Railway Iron Ore deposit for United Minerals Corporation Ltd. This Company was taken over by BHP Billiton in 2010 in a $204 million transaction.
Mr Barry Fehlberg is an Honours Geology graduate of the University of Adelaide (1968).
Chief Executive Officer
MAusIMM M.Sc (Geology), M.Tech (Hydrogeology), PG Dip in Geothermal Tech (NZ), Diploma in Science (GIS) (NZ)
Kumar has over 38 years experience in geological and hydrogeological investigations in India, New Zealand and Australia. He has successfully managed environmental studies, approvals, tenements, native title at United Minerals Corporation.
Kumar was appointed as Executive Director in July 2011 and managing various projects at VMC.