Work has confirmed that all four projects are within an enriched vanadium mineralised zone with significant exploration upside.
Notably, the geology team believes there is adequate historical drilling and sampling data to potentially model a JORC compliant Inferred resource.
Hardey’s executive chairman Terence Clee said: “The early due diligence findings are highly encouraging, particularly the confirmed prevalence of the Toolebuc Formation across the projects.
“More significantly, the board is delighted with the prospect of being able to model a JORC compliant inferred vanadium pentoxide resource, as this materially de-risks this Queensland projects.”
The due diligence is part of the proposed acquisition of six prospective vanadium projects in Queensland and the Northern Territory.
It represents a strategic move to expand into Australia and complement the proposed acquisition of the Nelly vanadium mine in Argentina.
This recent pre-acquisition due diligence relates to the four Queensland projects – Sharptooth, Spike, Cera and Petrie.
The vendor of the four Queensland projects is Vanadium Mining
Due diligence has shown that within each project area there are significant, outcropping and below surface, occurrences of the Toolebuc Formation.
The Toolebuc Formation is an oil shale highly prospective for vanadium mineralisation and secondary oil-bearing potential.
Historical drill assays up to 0.58% vanadium
During 2010, around 170 aircore holes were drilled, averaging 30 metres depth, across the north-south trending Spike, Cera and Petrie projects.
These holes have a combined 150-kilometre strike length with widespread elevated vanadium pentoxide grades.
Notably, the Cera project has numerous intercepts exhibiting elevated assay results up to 0.58% vanadium pentoxide.