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Australian Vanadium moves towards developing Gabanintha

Published: 10:30 10 Oct 2016 AEDT

Australian Vanadium moves towards developing Gabanintha
Updated concept study for the Gabanintha vanadium project

Results from the concept study have satisfied the board to advance the project with further key studies including metallurgical test work, resource update, mining study and environmental studies.

The company’s strategy is to deliver vanadium products such as batteries to end users and supply and process raw materials sourced from Gabanintha.

Vincent Algar, managing director, commented: “The company will now concentrate on key studies that reduce the risks for the project ahead of detailed feasibility studies. Water and environment are such areas.

“Along with the positive metallurgical test outcomes, the mining studies will assist us in marketing and offtake discussions which are essential for project development.”
 

Updated concept study

The updated concept study examined the feasibility of producing vanadium in the form of vanadium pentoxide from the Gabanintha vanadium project.

The results build on the original concept study which was updated in August 2014 and after new drilling and metallurgical test work programs were completed by the company in 2015.

A number of studies have been completed on Gabanintha since its acquisition in 2007, including:

- 2009: Concept Study;
- 2011: Resource Estimate;
- 2014: Concept Study, Update-1;
- 2015: Mineral Resource Estimate;
- 2015: Metallurgical Test work;
- 2016: Petrographic and mineralogical study; and
- 2016: Concept Study, Update-2 (this study).

Modelling of a 4.3-kilometre-long open pit captured 100% of the resource in the Measured category and 99% resource in the Indicated category.
 

Background

AVL is advancing the development of its 100%-owned Gabanintha Vanadium project measuring 91.4 million tonnes at 0.82% vanadium.

AVL also aims to develop a local production capacity for high-purity vanadium electrolyte, which forms a key component of vanadium redox flow batteries (VRB).

The company recently purchased a vanadium electrolyte pilot plant from C-Tech Innovation Ltd.

This purchase will enable AVL to develop unique vanadium electrolyte production expertise and capability in Australia, through both stand-alone and planned mine-attached facilities.

AVL is actively marketing vanadium redox flow batteries in Australia through a distribution agreement with world-leading flow battery manufacturer, GILDEMEISTER.

AVL recently sold and installed its first vanadium redox flow battery storage system at a native tree nursery in Busselton, Western Australia.
 

Timeline of activities

Following the positive outcome of the pit optimisation work and the updated concept study, the company will advance the project towards development by the completion of a range of more in-depth studies.

These studies will include:

- Jan-Feb 2017: Resource update;
- Mar-Apr 2017: Mine design;
- Mar-Apr 2017: Metallurgical test program;
- May-Jun 2017: Water supply and hydrology studies;
- Jun-Jul 2017: Environmental studies;
- Jul-Aug 2017: Environmental and permitting review; and
- Jul-Aug 2017: Marketing and offtake negotiations.
 

Analysis

The results of the pit optimisation modelling combined with the earlier components of the concept study further de-risk the Gabanintha vanadium project as it advances towards development.

Developing Gabanintha is an integral part of AVL’s strategy to becoming vertically integrated.

Accordingly, AVL will advance Gabanintha by the commencing a number of key studies.

The stock is up 125% year to date, currently trading at $0.018.

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