NiPlats Australia (ASX: NIP) has reported a very high tenor of 2.48% V2O5 in magnetite concentrate from a composited sample from representative drill holes that intersected the high grade basal zone in the Central vanadium deposit at Speewah.
Significantly, the head grade of the aggregate sample is 0.38% V2O5, which compares with an estimated resource grade of 0.37% V2O5 for the basal high grade zone of the Central deposit.
NiPlats is progressing metallurgical studies on its very large vanadiferous magnetite deposits located in the east Kimberley of Western Australia.
A recently completed Mineral Resource estimate has increased the vanadium Resource by about 400% to 3.16 billion tonnes at 0.30% V2O5, which together with other prospects yet to be drill tested, confirms Speewah Dome as hosting Australia’s largest vanadium in magnetite deposit.
The company said the Central high grade zone delivers consistently high tenor magnetite concentrates, significantly higher than reported by other Australian primary production vanadiferous magnetite projects.
The key aspects of this announcement include: production of a very high grade or tenor magnetite concentrate of 2.48% V2O5; use of low strength magnetic separation, upgrading the sample from 0.38 V2O5 to 2.48% V2O5; and the test result is representative of the basal zone of the Central deposit.
This result has been obtained at a lower head grade than previous work and yet the very high concentrate tenor has been maintained.
The high grade of the concentrate should offer competitive cost advantages in the downstream processing of vanadiferous magnetite into either vanadium pentoxide or ferrovanadium.
The company said indications from the current studies suggest that Speewah has the potential to support an initial 25 year long life mining operation producing a concentrate with high tenor vanadium. Further studies are required to examine the cost competitiveness of the operation.
This metallurgical report is part of a more extensive metallurgical programme, and one of a number of key objectives in respect of the vanadium project to be delivered during 2010.
NiPlats is currently completing scoping studies focussed on the Central deposit.
These studies, which include metallurgical testing and feasibility components, are designed to deliver the following key outcomes in 2010: vanadium processing Flowsheet, OPEX, CAPEX and Net Present Value for the vanadium project; pit design and optimisation that will lead to a Reserve estimate on the Central deposit Resource; and application for a Mining Lease that would allow future development.
The strategy NiPlats has adopted is to de-risk the vanadium project by delivering these key technical outcomes required to attract investment and development funding for the vanadium project in the shortest possible timeframe.
NiPlats Australia shares rose 14% to 42 cents in trading today.