Proactiveinvestors Australia Australian Vanadium Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Australian Vanadium Ltd RSS feed en Thu, 23 May 2019 14:04:40 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Australian Vanadium keen to showcase flagship asset to UK Investors ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13404/australian-vanadium-keen-to-showcase-flagship-asset-to-uk-investors-13404.html Fri, 17 May 2019 09:47:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13404/australian-vanadium-keen-to-showcase-flagship-asset-to-uk-investors-13404.html <![CDATA[News - Australian Vanadium appoints experienced industry expert Todd Richardson as COO ]]> https://www.proactiveinvestors.com.au/companies/news/220271/australian-vanadium-appoints-experienced-industry-expert-todd-richardson-as-coo-220271.html Australian Vanadium Ltd (ASX:AVL) has appointed highly experienced vanadium industry expert Todd Richardson to the newly created position of chief operating officer.

This appointment is consistent with the company's objective of building its corporate capability and management team to rapidly deliver the Australian Vanadium Project in WA's Mid-West.

New COO Todd Richardson.

Richardson joined the company at the beginning of 2018 and has impressed AVL with his strong leadership in addition to his extensive technical capability.

Australian Vanadium managing director Vincent Algar said the company was pleased to secure someone of Richardson’s calibre and experience to take on the chief operating officer role.

“Having worked with Todd over the past year, I can attest to his outstanding work ethic, technical acumen and collaborative approach, which will further strengthen the outstanding team we already have in place.”

The company is focused on project delivery through its commercial and strategic work, as offtake agreements are finalised and project funding discussions advanced in the coming months.

READ: Australian Vanadium does deal to advance Coates Vanadium Project

Richardson’s experience includes design, commissioning and operation of hydrometallurgical, pyrometallurgical and specialty vanadium chemical processes.

He has more than 20 years’ experience from vanadium operations in Australia, Canada and the USA and has previously worked for AMG Vanadium, VanadiumCorp, Midwest Vanadium and Evraz Stractor.

His knowledge has already proved invaluable to the company and with his experience and focus on the project, he will be able to drive the internal and external team in its goal to take the Australian Vanadium Project into production.

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Wed, 15 May 2019 13:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220271/australian-vanadium-appoints-experienced-industry-expert-todd-richardson-as-coo-220271.html
<![CDATA[News - Australian Vanadium does deal to advance Coates Vanadium Project ]]> https://www.proactiveinvestors.com.au/companies/news/220086/australian-vanadium-does-deal-to-advance-coates-vanadium-project-220086.html Australian Vanadium Ltd (ASX:AVL) has signed a joint venture agreement with a private company to advance the Coates Vanadium Project near Perth in Western Australia.

The agreement is with Ultra Power Systems Limited (UPS), a vertically integrated electrochemical processing and energy storage company.

UPS aims to produce vanadium electrolyte and will test material from the Coates as feed material.

UPS holds very rare production licence

UPS has secured a licence to Pacific Northwest National Laboratory’s (PNNL) generation 3 vanadium electrolyte production.

The licence is one of three globally.

UPS also holds the exclusive Australian option to license a processing technology VEPT, which ebales the recovery of valuable by-products during the vanadium processing route with minimal carbon production and minimal waste.

READ: Australian Vanadium Ltd to update resources for PFS metrics as it targets 2021 production

AVL’s managing director Vincent Algar said: “Having a deposit so close to Perth will enable the testing of both the VEPT process and production of generation 3 electrolyte at a relatively low cost.

“AVL looks forward to developing the relationship with UPS further as we advance the vanadium industry in Western Australia.”

Mutually beneficial deal

UPS managing director Brad Appleyard added: “We are excited to commercialise VEPT exclusively in the mining friendly and vanadium-rich jurisdiction of Australia.

“With strong channel partners, investors and government support we intend to establish the leading integrated solution for vanadium batteries worldwide.

“Stationary battery storage is the key to a successful transformation of the energy industry into one based on renewable energy.

“Vanadium Redox Flow Batteries are the cleanest and most effective such technology available today.

“The central role played by the electrolyte in these batteries provides UPS with an opportunity to play a key role in the power industry well into the future.”

AVL stands to gain $0.5 million or shares in UPS

The agreement allows UPS the exclusive right to earn a 49% legal and beneficial interest in the tenement on a $5,000 signing fee, followed by $50,000 being spent on exploration within 12 months and $150,000 within 24 months.

Following this, UPS will be able to acquire AVL’s joint venture interest for $0.5 million or shares in UPS, at the election of AVL.

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Mon, 13 May 2019 11:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220086/australian-vanadium-does-deal-to-advance-coates-vanadium-project-220086.html
<![CDATA[Media files - Australian Vanadium says Chinese production ramping up to meet increasing demand ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13029/australian-vanadium-says-chinese-production-ramping-up-to-meet-increasing-demand-13029.html Tue, 16 Apr 2019 19:46:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13029/australian-vanadium-says-chinese-production-ramping-up-to-meet-increasing-demand-13029.html <![CDATA[News - Australian Vanadium Ltd to update resources for PFS metrics as it targets 2021 production ]]> https://www.proactiveinvestors.com.au/companies/news/218525/australian-vanadium-ltd-to-update-resources-for-pfs-metrics-as-it-targets-2021-production-218525.html Australian Vanadium Ltd (ASX:AVL) (FRA:JT71) (OTCMKTS:ATVVF) specialises in vanadium exploration and development in Western Australia. It is run by Vincent Algar, a geologist and former investment analyst with more than 25 years of experience in the resources and mining services industries. Algar previously headed up a manganese exploration company spun out of the Hancock Prospecting Pty Ltd buy-up Atlas Iron Limited (ASX:AGO).

What does Australian Vanadium own?

The company’s key asset is The Australian Vanadium Project about 43 kilometres south of the mining town of Meekatharra and 740 kilometres northeast of Perth.

Australian Vanadium holds vanadium, uranium, cobalt, chromium, titanium, lithium, tantalum, manganese and iron ore rights to its now 260 square kilometre project.

AVL’s maiden ore reserve was 18.24 million tonnes at 1.04% vanadium pentoxide (V2O5), comprising a proved reserve of 9.82 million tonnes at 1.07% and a probable reserve of 8.42 million tonnes at 1.01%.

The resource is 183.6 million tonnes grading 0.76% V2O5, the company confirmed in March 2019 in a corporate presentation, with a high-grade segment of 96.7 million tonnes at 1% V2O5.

Australian Vanadium expects to be able to produce a high-purity V2O5 powder for superalloys and energy storage.

The company controls an 11-kilometre resource strike length of the Bushveld-type vanadium titano-magnetite (VTM) deposit, with the mine plan based on 2.5 of those kilometres.

AVL said in the corporate update “significant potential to improve project economics” had been identified and was being investigated actively for a “well-defined ore body (with a) well-understood processing route”.

Managing director Vincent Algar spoke to Proactive Investors about the corporate update in a video interview published on March 21, 2019.

Algar noted the presentation highlighted “some of the uniqueness of what we’re doing out there” and provided more detail on the project’s capital cost, which the company is targeting to reduce during ongoing definitive feasibility study (DFS) work expected to be finalised in December 2019.

The US$354 million ($494 million) capital cost was broken down into a processing plant capital cost US$260 million, which could come in at $195 million given the potential for the costing to be 25% greater or lower.

The production rate would be 22.5 million pounds V2O5, or 5,650 tonnes of vanadium (MTV).

A 2017 estimate put the size of the global MTV shortage as 8,000 MTV, or 10% of the global market.

The March 2019 update confirmed the company’s commitment to fast-tracking its “significant global resource” and highlighted the vanadium expertise inherent in its team, saying the expertise separated it from other explorers.

That team includes geologist-MD Algar, technical director Daniel Harris and technical manager Todd Richardson who draw on a group of skilled consultants including Wood, Golder, Biologic Environmental Survey, Dempers & Seymour geotechnical & mining consultants, Clean Energy, Umwelt environmental & social consultants and Adman Resources.

The presentation also updates the company’s timelines and provides a discussion around operating costs.

Operating costs (opex) for the mine with potential for expansion are $4.23 for a pound of V2O5 or $4.15 per pound of V2O5 equivalent.

The company is on a cost reduction drive for the project and flagged in the update its low-cost base metal recovery circuit had improved overall opex by 7 US cents a pound  of V2O5.

Algar noted in his March 2019 video interview that vanadium price corrections were put down to a change in Chinese rebar standards for the reinforcing bar used in construction but affirmed he believed prices would be strong for many years to come.

The new rebar standard means there is an increased requirement for vanadium as an input.

Australian Vanadium’s corporate update flagged that at a vanadium price of US$13 a pound, the Australian Vanadium project would have an after-tax net present value (NPV8) of US$616 million when calculated at an 8% discount.

The company produced a pre-feasibility study (PFS) for its Australian Vanadium project in December 2018, valuing it at a top-end after-tax US$1.4 billion if prices reached the US$20 a pound mark.

AVL’s concentrator plant design in the PFS included a sulphide flotation circuit that could extract a variety of minerals.

Australian Vanadium has been directing research and development (R&D) capacity towards developing processing techniques to produce vanadium from a poly-metallic ore for vanadium redox flow batteries (VRFB) and steel applications.

It installed a VRFB in Busselton in WA's southwest in October 2016 as part of its efforts, running and testing the battery since then to assess how it performs in a range of different temperatures and analyse other key metrics from a built-in battery management system.

The company also completed a drilling campaign at the site earlier this month, allowing an early start to a pilot metallurgical test program.

Large diameter diamond core was collected as test material for the pilot-scale studies.

A total of 30 tonnes of massive magnetite was collected for processing after 2,862 metres were drilled in 30 drill holes.

A pending mineral resource update will allow another update to the company's PFS financial metrics.

The Australian Vanadium project area is prospective for other minerals besides vanadium, with sulphide concentrates produced from flotation in May 2018 having grades of 3.8% to 6.3% base metals, including 1.54-2.02% cobalt, 1.36-2.58% nickel and 0.82-1.7% copper.

Eleven tenements are held by Australian Vanadium in pending mining lease application M51/878, making up 70% of the maiden mineral resource, while the remaining 30% of the mineral resource is found at wholly-owned exploration licence E51/843.

Australian Vanadium hopes to start construction in 2020-2021 and be in production with its namesake project in 2021.

The company's start-up, commissioning and ramp-up activities would then extend over the years 2021-2022.

Who are Australian Vanadium’s neighbours?

Junior explorer Bryah Resources Ltd (ASX:BYH) holds rights to other minerals, such as base and precious metals, over some 200 square kilometres of the project, including the prospective minerals nickel and copper.

Bryah had picked up the Peak Hill tenement (E52/3349) from Australian Vanadium in a deal inked in January 2017.

Technology Metals Australia Ltd (ASX:TMT) (FRA:TN6) is operating in the vicinity of Australian Vanadium with its flagship project, the Gabanintha Vanadium Project.

TMT’s project is also at the DFS stage with the smaller peer hoping to produce its study by mid-2019.

The neighbour’s PFS valued its 13-year project at $1.28 billion using a net present value (NPV10) calculated at a 10% discount, which was based on 21 million tonnes of its 120 million tonnes resource, where 13,000 tonnes would be produced a year.

What is Australian Vanadium’s capital base?

Australian Vanadium had $9.5 million cash at the end of December quarter 2018, tipping in January it expected $2.2 million in cash outflows in the March quarter of 2019.

The company planned to spend $1.8 million on exploration and evaluation in the March quarter, with its quarterly reports due in late April 2019.

After the quarter was completed, AVL collected a $113,660 R&D rebate from the Australian Government.

The company's next quarterly reporting is expected by the end of April 2019.

AVL’s securities gained 0.1 cent, or 5%, to 2.1 cents on Friday.

Inflection points

Ongoing market assessment of financial metrics, timelines and objectives in March 2019 commercial update

Pending mineral resource update

Pending PFS financial metrics update

Successful DFS release and capital cost reductions

Final investment decision progress and financing and offtake commitment success

Successful milestones from peers near the town of Gabanintha in WA, such as Technology Metals Australia and Bryah Resources

Australian vanadium industry development

Broader global vanadium industry pricing and sentiment

Managing director Vincent Algar highlights DFS costs focus

“When we put out the capex [in the December PFS] it came out at $360 million US and some people found it a bit hard to chew off, so what we’ve done is explained that this is actually quite a reasonable capex for a project of this size but what we’ve given is an idea of how we’ve actually bolstered that up,” Australian Vanadium managing director Vincent Algar told Proactive Investors last month.

“We’ve broken it down into the actual plant and operating capex, which is a $260 million number, and then we’ve shown that there’s a lot of pieces in there that we can improve on and that’s really what we want to emphasise in that capex breakdown.

“Through the course of our ongoing definitive feasibility study our focus is on reducing capital items in that list and effectively … reducing them to a point where they are minimised and that means that overall our capex will reduce.

“The effect of reducing the capital cost is that it has an effect on the bottom line at the end of the day — you don’t have to pay that money back and you can get into profit much, much quicker.”

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Sun, 14 Apr 2019 19:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218525/australian-vanadium-ltd-to-update-resources-for-pfs-metrics-as-it-targets-2021-production-218525.html
<![CDATA[News - Australian Vanadium receives $113,660 R&D rebate from Australian Government ]]> https://www.proactiveinvestors.com.au/companies/news/218453/australian-vanadium-receives-113660-rd-rebate-from-australian-government-218453.html Australian Vanadium Ltd (ASX:AVL) has received $113,660 from the Australian Federal Government’s Research and Development (R&D) tax incentive scheme for the 2016/2017 tax year.

The scheme encourages companies to engage in research and development benefiting Australia by providing a tax offset for eligible activities.

Australian Vanadium’s R&D work focused on the development of processing techniques to produce vanadium from a poly-metallic ore for vanadium redox flow batteries (VRFB) and steel applications.

READ: Australian Vanadium shares surge after commencing pilot scale test work ahead of schedule

The work was a continuation of the previous year’s activities and included research on vanadium electrolyte creation and analysis of the performance of the VRFB, which the company installed in Busselton, Western Australia.

The VRFB battery has been running since its installation in October 2016 and the company has been able to assess how it performs in a range of different temperatures and analyse other key metrics that the built-in battery management system provides.

READ: Australian Vanadium revises PFS financial metrics, targets 2021 production

Australian Vanadium is submitting a claim for the 2017/2018 period which covers further work on these R&D activities as well as additional processing research and development work related to the recovery of vanadium products from the Australian Vanadium Project.

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Fri, 12 Apr 2019 10:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218453/australian-vanadium-receives-113660-rd-rebate-from-australian-government-218453.html
<![CDATA[News - Australian Vanadium shares surge after commencing pilot scale test work ahead of schedule ]]> https://www.proactiveinvestors.com.au/companies/news/217920/australian-vanadium-shares-surge-after-commencing-pilot-scale-test-work-ahead-of-schedule-217920.html Australian Vanadium Ltd's (ASX:AVL) shares are trading about 10.5% higher intra-day after completing metallurgical and resource drilling at the Australian Vanadium Project near Meekatharra in Western Australia.

The completed drill program collected large diameter diamond core test material for pilot scale studies by targeting blends of material types that will be typical of material to be mined from the high-grade massive magnetite layer within the proposed open pit at the project.

 

Detailed pilot scale test work has now commenced ahead of schedule for the finalisation of the processing flow diagram (PFD) ahead of final engineering design.

The pilot program will test representative amounts of ore to ensure that the process is scaled up correctly for actual mine production.

The large tonnage sample collected by the company will allow for a scaled pilot program and is industry best practice for a project this size.

READ: Australian Vanadium revises PFS financial metrics, targets 2021 production

Managing director Vincent Algar said: “Testing 30 tonnes of our target magnetite blend is necessary for a project like AVL’s.

“The data collected from this pilot program will de-risk the final design and assure investors that the project will achieve production and quality targets.

“Projects of this scale must be designed and built with high confidence in the outcome and this can only be attained by a well-managed pilot program.

“AVL’s world class team has all the experience in vanadium to know what to look for, and we will achieve the best possible process by thorough and efficient evaluation.

“Time is very much of the essence, speed and accuracy are the way things will be done to achieve the goal of bringing this world class asset to production.”

2019 pilot plant drill campaign

Collection of large diameter diamond core (PQ size) as test material for pilot scale studies has been completed.

Diamond core of all material types in the high-grade massive magnetite layer was drilled using downdip and vertical diamond drill holes.

Algar added: “The globally unique substantial thickness of our vanadium titanium magnetite (VTM) deposit has allowed the company to advance collection of material for the pilot study by carefully planned and successfully executed downdip drilling.

Massive magnetite in diamond drill core

“The time and cost savings gained by using this method match our accelerated time line to achieving production in 2021.

“We have learned a significant amount more about our amazing deposit by this well executed drill program.

“The complex, but predictable nature of the material types, weathering and mafic/magnetite ratios are all crucial for the final mine plan.

 

“One key discovery is the presence of less weathered, highly magnetic material at surface within our designed pit length.

“This finding will have a significant impact on our capex and opex costs, and consequently drive up our project NPV (value).”

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Thu, 04 Apr 2019 12:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217920/australian-vanadium-shares-surge-after-commencing-pilot-scale-test-work-ahead-of-schedule-217920.html
<![CDATA[News - Australian Vanadium revises PFS financial metrics, targets 2021 production ]]> https://www.proactiveinvestors.com.au/companies/news/216897/australian-vanadium-revises-pfs-financial-metrics-targets-2021-production-216897.html Australian Vanadium Ltd (ASX:AVL) (FRA:JT71) (OTCMKTS:ATVVF) specialises in vanadium exploration and development in Western Australia. It is run by Vincent Algar, a geologist and former investment analyst with more than 25 years of experience in the resources and mining services industries. Algar previously headed up a manganese exploration company spun out of the Hancock Prospecting Pty Ltd buy-up Atlas Iron Limited (ASX:AGO).

What does Australian Vanadium own?

The company’s key asset is The Australian Vanadium Project about 43 kilometres south of the mining town of Meekatharra and 740 kilometres northeast of Perth.

Australian Vanadium holds vanadium, uranium, cobalt, chromium, titanium, lithium, tantalum, manganese and iron ore rights to its now 260 square kilometre project.

AVL’s maiden ore reserve was 18.24 million tonnes at 1.04% vanadium pentoxide (V2O5), comprising a proved reserve of 9.82 million tonnes at 1.07% and a probable reserve of 8.42 million tonnes at 1.01%.

The resource is 183.6 million tonnes grading 0.76% V2O5, the company confirmed this week in a corporate presentation released to the market on Tuesday, March 19, with a high-grade segment of 96.7 million tonnes at 1% V2O5.

Australian Vanadium expects to be able to produce a high-purity V2O5 powder for superalloys and energy storage.

The company controls an 11-kilometre resource strike length of the Bushveld-type vanadium titano-magnetite (VTM) deposit, with the mine plan based on 2.5 of those kilometres.

AVL said in the corporate update “significant potential to improve project economics” had been identified and was being investigated actively for a “well-defined ore body (with a) well-understood processing route”.

Managing director Vincent Algar spoke to Proactive Investors about the corporate update in a video interview published earlier today.

Algar noted the presentation highlighted “some of the uniqueness of what we’re doing out there” and provided more detail on the project’s capital cost, which the company is targeting to reduce during ongoing definitive feasibility study (DFS) work expected to be finalised in December 2019.

The US$354 million ($494 million) capital cost was broken down into a processing plant capital cost US$260 million, which could come in at $195 million given the potential for the costing to be 25% greater or lower.

The production rate would be 22.5 million pounds V2O5, or 5,650 tonnes of vanadium (MTV).

A 2017 estimate put the size of the global MTV shortage as 8,000 MTV, or 10% of the global market.

The update confirmed the company’s commitment to fast-tracking its “significant global resource” and highlighted the vanadium expertise inherent in its team, saying the expertise separated it from other explorers.

That team includes geologist-MD Algar, technical director Daniel Harris and technical manager Todd Richardson who draw on a group of skilled consultants including Wood, Golder, Biologic Environmental Survey, Dempers & Seymour geotechnical & mining consultants, Clean Energy, Umwelt environmental & social consultants and Adman Resources.

The presentation also updates the company’s timelines and provides a discussion around operating costs.

Operating costs (opex) for the mine with potential for expansion are $4.23 for a pound of V2O5 or $4.15 per pound of V2O5 equivalent.

The company is on a cost reduction drive for the project and flagged in the update its low-cost base metal recovery circuit had improved overall opex by 7 US cents a pound V2O5.

Algar noted in today’s interview recent vanadium price corrections put down to a change in Chinese rebar standards for the reinforcing bar used in construction but affirmed he believed prices would be strong for many years to come.

The company’s corporate update flagged that at a vanadium price of US$13 a pound, the Australian Vanadium project would have an after-tax net present value (NPV8) of US$616 million when calculated at an 8% discount.

Australian Vanadium produced a pre-feasibility study (PFS) for its Australian Vanadium project in December 2018, valuing it at a top-end after-tax US$1.4 billion if prices reached the US$20 a pound mark.

The company’s concentrator plant design in the PFS included a sulphide flotation circuit that could extract a variety of minerals.

AVL is undertaking a drilling campaign and expects to finish early in the June quarter of 2019 before it starts a pilot metallurgical test program.

Large diameter diamond core is being collected as test material for pilot-scale studies.

The project area is prospective for other minerals besides vanadium, with sulphide concentrates produced from flotation in May 2018 having grades of 3.8% to 6.3% base metals, including 1.54-2.02% cobalt, 1.36-2.58% nickel and 0.82-1.7% copper.

Eleven tenements are held by Australian Vanadium in pending mining lease application M51/878, making up 70% of the maiden mineral resource, while the remaining 30% of the mineral resource is found at wholly-owned exploration licence E51/843.

Australian Vanadium hopes to start construction in 2020-2021 and be in production with its namesake project in 2021.

The company's start-up, commissioning and ramp-up activities would then extend over the years 2021-2022.

Who are Australian Vanadium’s neighbours?

Junior explorer Bryah Resources Ltd (ASX:BYH) holds rights to other minerals, such as base and precious metals, over some 200 square kilometres of the project, including the prospective minerals nickel and copper.

Bryah had picked up the Peak Hill tenement (E52/3349) from Australian Vanadium in a deal inked in January 2017.

Technology Metals Australia Ltd (ASX:TMT) (FRA:TN6) is operating in the vicinity of Australian Vanadium with its flagship project, the Gabanintha Vanadium Project.

TMT’s project is also at the DFS stage with the smaller peer hoping to produce its study by mid-2019.

The neighbour’s PFS valued its 13-year project at $1.28 billion using a net present value (NPV10) calculated at a 10% discount, which was based on 21 million tonnes of its 120 million tonnes resource, where 13,000 tonnes would be produced a year.

What is Australian Vanadium’s capital base?

Australian Vanadium had $9.5 million cash at the end of December quarter 2018, tipping in January it expected $2.2 million in cash outflows in the March quarter of 2019.

The company planned to spend $1.8 million on exploration and evaluation in the March quarter, with its quarterly reports due in late April 2019.

Australian Vanadium’s securities gained 0.1 cent, or 5.26%, to 2 cents by lunchtime today.

Inflection points

Market assessment of financial metrics, timelines and objectives in this week’s commercial update

Successful DFS release and capital cost reductions

Final investment decision progress and financing and offtake commitment success

Successful milestones from peers near the town of Gabanintha in WA, such as Technology Metals Australia and Bryah Resources

Australian vanadium industry development

Broader global vanadium industry pricing and sentiment

Managing director Vincent Algar highlights DFS costs focus

“When we put out the capex [in the December PFS] it came out at $360 million US and some people found it a bit hard to chew off, so what we’ve done is explained that this is actually quite a reasonable capex for a project of this size but what we’ve given is an idea of how we’ve actually bolstered that up,” Australian Vanadium managing director Vincent Algar told Proactive Investors this week.

“We’ve broken it down into the actual plant and operating capex, which is a $260 million number, and then we’ve shown that there’s a lot of pieces in there that we can improve on and that’s really what we want to emphasise in that capex breakdown.

“Through the course of our ongoing definitive feasibility study our focus is on reducing capital items in that list and effectively … reducing them to a point where they are minimised and that means that overall our capex will reduce.

“The effect of reducing the capital cost is that it has an effect on the bottom line at the end of the day — you don’t have to pay that money back and you can get into profit much, much quicker.”

Australian Vanadium managing director Vincent Algar will present a Mining Spotlight during a Battery Metals session at the April 2-4 Mines and Money Asia 2019 conference in Hong Kong this year.

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Wed, 20 Mar 2019 22:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216897/australian-vanadium-revises-pfs-financial-metrics-targets-2021-production-216897.html
<![CDATA[Media files - Australian Vanadium further reduces capex, production expected in 2021 ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12668/australian-vanadium-further-reduces-capex-production-expected-in-2021-12668.html Wed, 20 Mar 2019 18:49:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12668/australian-vanadium-further-reduces-capex-production-expected-in-2021-12668.html <![CDATA[Media files - Australian Vanadium ahead of schedule with drilling, accelerating Gabanintha timeline ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12333/australian-vanadium-ahead-of-schedule-with-drilling-accelerating-gabanintha-timeline-12333.html Mon, 25 Feb 2019 14:04:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12333/australian-vanadium-ahead-of-schedule-with-drilling-accelerating-gabanintha-timeline-12333.html <![CDATA[News - Australian Vanadium progresses metallurgical and resource drilling at Gabanintha Project ]]> https://www.proactiveinvestors.com.au/companies/news/215002/australian-vanadium-progresses-metallurgical-and-resource-drilling-at-gabanintha-project-215002.html Australian Vanadium Ltd’s (ASX:AVL) metallurgical and resource drilling program at the Gabanintha Vanadium Project near Meekatharra in Western Australia is advancing ahead of schedule.

The drill program at Gabanintha is collecting large diameter diamond core as test material for pilot scale studies.

 

Detailed pilot scale test work will allow the planned processing flow diagram (PFD), to be tested on representative volumes of ore to ensure that the process is scaled up correctly for actual mine production.

Full-scale pilot studies are typical and best practice for projects of the size of AVL’s Gabanintha.

2019 pilot plant drill campaign

Collection of large diameter diamond core as test material for pilot scale studies is rapidly progressing.

The diamond core of all material types in the high-grade massive magnetite layer is currently being drilled using downdip and vertical diamond drill holes.

The drilling is being undertaken within AVL’s proposed open pit at Gabanintha.

READ: Australian Vanadium gets diamond drill bit spinning at Gabanintha Vanadium Project

AVL managing director Vincent Algar said: “The substantial thickness of the deposit has allowed the company to advance collection of material for the pilot study by carefully planned and executed downdip drilling.

“The time and cost savings gained by using this method match our accelerated time line to 2021 production.

“Drilling is progressing exceptionally well, recovering high quality magnetite and proceeding ahead of schedule.”

READ: Australian Vanadium secures $6.1 million from option conversion

Nine tonnes of drill core have already been delivered to an experienced laboratory in Perth, with the remainder to be delivered in regular intervals through February and March.

On completion, the drill program will provide AVL with:

• About 30 tonnes of oxide, transitional and fresh core samples required to run a robust pilot plant test work program for the Crushing, Milling and Beneficiation (CMB) circuit;

• Concentrate products from the CMB pilot plant test work program for use in salt-roast leach and hydrometallurgical tests that will produce samples of refined vanadium pentoxide (V2O5);

• Information from these tests to be used to further refine the results of the pre-feasibility study (PFS) released in December 2018; and

• Additional intersections and assay information for the estimation of a revised resource estimate, targeting extensions to the resources to the south of and below the current pit design where the deposit remains open at depth.

Focused campaign

The current drilling campaign is focused on the northern 2 kilometres of AVL’s 11.5 kilometres deposit strike length and the collected tonnage is spread along the length of the pit defined by the PFS.

The robust analysis of large volumes of typical material from within the ore reserve aims to distinguish AVL from its peers as the leading vanadium project of choice globally.

 

Eight holes have been completed for 1,227 metres in the program to date.

Significantly, handheld XRF analysis of drill cores has already confirmed the highly consistent nature of the Gabanintha mineralised zones as well as the accuracy of the current resource model.

The drill program is due for completion in late March 2019 and is currently running ahead of schedule.

Definite feasibility study (DFS) engineering and environmental approvals are ongoing with a revised project timeline targeting 2021 production start, subject to finance.

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Thu, 21 Feb 2019 12:42:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215002/australian-vanadium-progresses-metallurgical-and-resource-drilling-at-gabanintha-project-215002.html
<![CDATA[News - Australian Vanadium gets diamond drill bit spinning at Gabanintha Vanadium Project ]]> https://www.proactiveinvestors.com.au/companies/news/212921/australian-vanadium-gets-diamond-drill-bit-spinning-at-gabanintha-vanadium-project-212921.html Australian Vanadium Ltd (ASX:AVL) has begun metallurgical and resource diamond drilling at its Gabanintha Vanadium Project near Meekathara in Western Australia.

The program is designed to update the current mineral resource by drilling a number of holes to test at depth, trial new spectral and XRF scanning techniques and gather further geotechnical data.

Confirm circuit performance

Australian Vanadium director Vincent Algar said: “The 30 tonnes of material from this program are essential to confirm the performance of the circuit we have already defined in the PFS.

“As we complete the detailed design of the plant, it is essential we move from bench-scale tests to larger-scale tests using anticipated blends of ore that will be mined.

“Focusing on quality”

Algar also said: “A detailed pilot metallurgical program allows us to test and refine the circuit ensuring no surprises during actual mine production.

“The AVL team is focusing on quality as it advances through the work ahead.

“This quality will assist us in securing project funding partners and bringing Gabanintha into production.”

 

Innovative drilling procedures

Diamond holes will be drilled into the designed pit shell at the mining lease application to extract around 30 tonnes of oxide, transitional and fresh core samples for metallurgical work.

AVL will use innovative drilling procedures to reduce costs and drilling time as well as to maximise tonnage and information per hole during the program.

The program aims to intersect the mineralisation and provide key geo-metallurgical information on pit wall angles and free-dig boundaries in the waste rock.

Earlier this month Algar spoke to Proactive Investors about the Gabanintha project and its plans to complete a definitive feasibility study.

READ: Australian Vanadium boosts vanadium resource de-risking project further

In November 2018 AVL increased the size and confidence of its JORC-compliant resource as a result of 19 RC holes for 1,863 metres and three diamond holes for 368.2 metres.

The updated total resource of 183.6 million tonnes at 0.76% vanadium pentoxide notably features a massive magnetite high-grade zone (HG10) of 96.7 million tonnes at 1% vanadium.

 

Algar said at the time: “The increased understanding and confidence further strengthens Gabanintha’s position as a world-class vanadium project in its size, grade and metallurgical recovery parameters.

“This update highlights our ability to leverage our significant strike length advantage to cheaply add more low-risk resource, optionality and mine life to the project.”

READ: Australian Vanadium’s pre-feasibility study confirms robust economics for Gabanintha deposit

In December last year the company released the pre-feasibility study results reporting a maiden ore reserve of 18.24 million tones at 1.04% V205.

Gabanintha’s maiden ore reserve comprises a proved reserve of 9.82 million tones at 1.07% V205 and a probable reserve of 8.42 million tonnes at 1.01% V205.

 

It is expected the site will produce around 900,000 tonnes per annum of 1.40% V205 magnetite concentrate at an average yield of 60%.

The planned V205 refinery at the site will have a production rate of 22.5 million pounds of V205 per annum over an initial mine of 17 years.

- Jessica Cummins

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Sun, 20 Jan 2019 21:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212921/australian-vanadium-gets-diamond-drill-bit-spinning-at-gabanintha-vanadium-project-212921.html
<![CDATA[Media files - Australian Vanadium's MD talks vanadium and VRFB markets in 2019 and beyond ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11794/australian-vanadium-s-md-talks-vanadium-and-vrfb-markets-in-2019-and-beyond-11794.html Mon, 14 Jan 2019 10:00:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11794/australian-vanadium-s-md-talks-vanadium-and-vrfb-markets-in-2019-and-beyond-11794.html <![CDATA[Media files - Australian Vanadium's MD discusses plans for Gabanintha project with cash just raised ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11772/australian-vanadium-s-md-discusses-plans-for-gabanintha-project-with-cash-just-raised-11772.html Fri, 11 Jan 2019 10:00:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11772/australian-vanadium-s-md-discusses-plans-for-gabanintha-project-with-cash-just-raised-11772.html <![CDATA[News - Australian Vanadium secures $6.1 million from option conversion ]]> https://www.proactiveinvestors.com.au/companies/news/212272/australian-vanadium-secures-61-million-from-option-conversion-212272.html Australian Vanadium Ltd (ASX:AVL) has boosted its cash position to $9.68 million after $6.16 million worth of options expiring 31 December 2018 were exercised.

In addition to the 204.6 million options exercise, 62.75 million options were underwritten by Westar Capital Ltd at a value of $1.255 million.

Notably, AVL’s managing director Vincent Algar participated in the options exercise showing his belief in the company’s future.

READ: Australian Vanadium managing director pays to exercise options

AVL’s managing director Vincent Algar said “Starting 2019 with a healthy cash balance enables us to move swiftly forwards with our plans for the AVL Gabanintha vanadium project.

“Timelines can now be accelerated, and we are confident that we have a solid basis to inspire confidence in prospective investors and project partners.

“The option conversion gives the excellent AVL team welcome support for the work they are undertaking to take this world-class vanadium deposit into production.”

Gabanintha Vanadium Project valued at up to US$1.41 billion

During mid-late December 2018, AVL released its maiden ore reserve and final pre-feasibility study (PFS) on its Gabanintha Vanadium Project in Western Australia.

The PFS estimated an ungeared post-tax net present value (NPV) ranging between US$125 million and US$1.41 billion, depending on the vanadium pricing assumption used.

Positive outcomes and strong vanadium market fundamentals support immediate progression to a definitive feasibility study (DFS).

Drilling and pilot metallurgical study underway

AVL has initiated a pilot scale metallurgical study as part of definitive feasibility study (DFS). The pilot program commences with a diamond drilling sample collection program in mid-January.

Concurrent work on environmental studies and other time critical work is also ongoing.

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Thu, 10 Jan 2019 11:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212272/australian-vanadium-secures-61-million-from-option-conversion-212272.html
<![CDATA[News - Australian Vanadium managing director pays to exercise options ]]> https://www.proactiveinvestors.com.au/companies/news/211997/australian-vanadium-managing-director-pays-to-exercise-options-211997.html Australian Vanadium Ltd (ASX:AVL) managing director Vincent Algar has exercised $13,846 worth of options adding 692,307 shares to his holding.

The share acquisition increases his overall position to 11.26 million shares and further aligns him with shareholders.

READ: Australian Vanadium’s pre-feasibility study confirms robust economics for Gabanintha vanadium deposit

During mid-late December 2018, AVL released its maiden ore reserve and final pre-feasibility study (PFS) on its Gabanintha Vanadium Project in Western Australia.

The PFS estimated an ungeared post-tax net present value (NPV) ranging between US$125 million and US$1.41 billion, depending on the vanadium pricing assumption used.

Positive outcomes and strong vanadium market fundamentals support immediate progression to a definitive feasibility study (DFS).

Further drilling for pilot study is scheduled to commence January 2019.

]]>
Mon, 07 Jan 2019 08:18:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211997/australian-vanadium-managing-director-pays-to-exercise-options-211997.html
<![CDATA[Media files - Australian Vanadium reveals PFS & maiden ore reserve for 'globally unique' project ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11653/australian-vanadium-reveals-pfs--maiden-ore-reserve-for--globally-unique--project-11653.html Thu, 20 Dec 2018 09:00:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11653/australian-vanadium-reveals-pfs--maiden-ore-reserve-for--globally-unique--project-11653.html <![CDATA[News - Australian Vanadium’s pre-feasibility study confirms robust economics for Gabanintha deposit ]]> https://www.proactiveinvestors.com.au/companies/news/211444/australian-vanadiums-pre-feasibility-study-confirms-robust-economics-for-gabanintha-deposit-211444.html Australian Vanadium Ltd (ASX:AVL) has released the pre-feasibility study (PFS) results and a maiden ore reserve for its Gabanintha vanadium deposit in Western Australia.

The results of the PFS indicate a project with a well-defined resource base, robust economics and utilising an industry standard, low-risk method of beneficiation and refining to produce a vanadium pentoxide (V2O5) flake product.

Gabanintha’s maiden ore reserve of 18.24 million tonnes at 1.04% V2O5 comprises of a proved reserve of 9.82 million tonnes at 1.07% V2O5 and a probable reserve of 8.42 million tonnes at 1.01% V2O5.

Gabanintha ore reserve

AVL has envisaged an open pit mining and beneficiation operation producing about 900,000 tonnes per annum of 1.40% V2O5 magnetite concentrate at an average yield of 60%.

The planned V2O5 refinery at the Gabanintha site will have a production rate of about 22.5 million pounds of V2O5 per annum over an initial mine life of 17 years.

Plant layout

Importantly, AVL has estimated an ungeared post-tax net present value ranging between US$125 million and US$1.41 billion, depending on the pricing assumption, indicating a robust project.

Current V2O5 price is trading at US$22/pound with anticipated ongoing supply shortfall until at least 2025.

However, AVL has used a conservative long-term average V2O5 product pricing assumption of only US$8.67/pound for financial modelling.

Key financial outcomes (US$)

AVL managing director Vincent Algar said: “By completing this PFS on Gabanintha we have taken a major step towards bringing our world-class project into production.

“Announcing a maiden ore reserve is a key milestone and further embeds the project’s low-risk mineral resource and strong economic potential.

“The PFS includes detail that allows us to understand and design a long-life, low-cost vanadium pentoxide and cobalt concentrate production facility.

“The company also holds an extensive strike of inferred resource for further definition.

READ: Australian Vanadium offers vanadium expertise to battery industry research centre

“We believe that the project will deliver a world-leading, life of mine mass recovery to concentrate of over 60%. The unique thickness of the Gabanintha high-grade zone adds to its potential.

“AVL shareholders can now have increased confidence in the value of the company, as we embark immediately onto a diamond drill program to provide feed for pilot scale flowsheet validation test work and other DFS (definitive feasibility study) work packages.

“The completed PFS will allow us to confidently engage with strategic partners in 2019, at a time when vanadium supplies are very much in demand.

“Vanadium’s future is bright, with its traditional markets transitioning to higher quality steels and new energy metal markets developing.”

15 Year V2O5 commodity price per pound – inflated to 2018 US$

The body of work completed in the PFS will now feed into the Gabanintha DFS.

Due to the level of detail of many study aspects undertaken in the PFS, several areas are now at an advanced stage and work in 2019 will focus on optimisation and further refinement.

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Wed, 19 Dec 2018 12:52:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211444/australian-vanadiums-pre-feasibility-study-confirms-robust-economics-for-gabanintha-deposit-211444.html
<![CDATA[News - Australian Vanadium has Gabanintha pre-feasibility study results imminent ]]> https://www.proactiveinvestors.com.au/companies/news/211282/australian-vanadium-has-gabanintha-pre-feasibility-study-results-imminent-211282.html Australian Vanadium Ltd (ASX:AVL) will release results of a pre-feasibility study on the Gabanintha Vanadium Project in Western Australia’s Mid-West within days along with a maiden ore reserve.

Accordingly, the company has been granted a trading halt by the ASX.

This will remain in place until the start of normal trading on Wednesday, December 19, 2018, or when an announcement is released to the market, whichever occurs earliest.

READ: Australian Vanadium boosts vanadium resource derisking project further

Last month, AVL updated the Gabanintha resource, reporting 183.6 million tonnes grading 0.76% vanadium pentoxide.

Within this is a massive magnetite high-grade zone of 96.7 million tonnes at 1.00%, which averages 14 metres in thickness.

Besides vanadium, the project also features titanium and iron, as well as cobalt, copper and nickel in sulphides.

READ: Australian Vanadium prepares to submit final Gabanintha vanadium PFS

The company published a ‘robust’ base case for its PFS in September 2018, saying the project had strong fundamentals that supported the detailed optimisation work it was undertaking for the detailed study.

The baseline PFS indicated the company had the potential to become a low-cost vanadium producer in the international marketplace.

READ: Australian Vanadium offers vanadium expertise to battery industry research centre

Vanadium was trading for about US$29 a pound at the end of November, changing hands for US$29.10 a pound in China and US$28.75 a pound in Europe.

Increasing demand

The price is being pushed up by a predicted 10,000 tonne, or 30%, increase in demand for vanadium out of China due to regulatory change in the country where steelmakers were to better reinforce their steels with vanadium from November 1, 2018, to make the steels stronger.

Stricter standards in China

Corresponding stricter environmental standards also mean that Chinese manufacturers are barred from sourcing acid-leached vanadium from the usual go-to domestic source for vanadium in times of short supply.

These small producers use stone-coal processing and leach vanadium from stone coal using acid.

China’s use of tighter environmental standards amid greater demand means producers are looking farther afield, with their hunt having an upwards effect on prices.

The company’s shares last traded at 2.8 cents before the halt.

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Mon, 17 Dec 2018 13:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211282/australian-vanadium-has-gabanintha-pre-feasibility-study-results-imminent-211282.html
<![CDATA[News - Australian Vanadium prepares to submit final Gabanintha vanadium PFS ]]> https://www.proactiveinvestors.com.au/companies/news/210923/australian-vanadium-prepares-to-submit-final-gabanintha-vanadium-pfs-210923.html Australian Vanadium Ltd (ASX:AVL) is finalising a pre-feasibility study (PFS) for the Gabanintha Vanadium Project in Western Australia this month ahead of producing a  definitive feasibility study (DFS) next year with the help of Wood plc.

Last month the company updated the resource for the Mid West region project, reporting 183.6 million tonnes grading 0.76% vanadium pentoxide.

The resource is 50 kilometres from the town of Meekatharra along Meekatharra Road and includes a massive magnetite zone which features 96.7 million tonnes grading 1% vanadium.

Explorers drilled 1,863 metres at Australian Vanadium’s flagship project in 2018, drilling a consistent 3-10 metre-thick zone grading more than 1.2% vanadium pentoxide in 10 of 11 holes.

The massive magnetite layer averages 14 metres in thickness.

Besides vanadium, the Gabanintha project also features titanium and iron, as well as cobalt, copper and nickel in sulphide minerals.

‘Robust’ baseline PFS underpins final study

Australian Vanadium published a ‘robust’ base case for its PFS for Gabanintha project in September 2018, saying the project had strong fundamentals that supported the detailed optimisation work it was undertaking for the detailed study.

The baseline PFS indicated the company had the potential to become a low-cost vanadium producer in the international marketplace.

Australian Vanadium managing director Vincent Algar told Proactive Investors this week the company remained on track to present the final PFS to its board this month.

Geologist Algar also confirmed the company was planning to produce a DFS for the project next year, with the same contractor it had been working on for the PFS, the Wood group.

The MD said Australian Vanadium expected to name which quarter it would deliver the DFS in after taking the final PFS to its board.

READ: Australian Vanadium boosts vanadium resource, further derisking project

Australian Vanadium included a number of net present value figures (NPV8) in its preliminary study which were calculated at an 8% discount and modelled on an initial open-pit mine life of 17 years.

The highest NPV8 figure was up to US$2.37 billion and used a ceiling vanadium price of US$20 a pound, with a corresponding internal rate of return (IRR) of 69.8% and operating expenses (opex) of US$4.28 a pound or US$4.13 a pound when calculated as a vanadium equivalent.

Another base case for the PFS was based on a US$8/pound vanadium price and had an NPV8 of US$191 million at with a 14.5% IRR.

Like the US$20 a pound calculation, opex was US$4.28 a pound or US$4.13 a pound vanadium equivalent.

Regulatory change in China puts pressure on price

Vanadium is trading for about US$29 a pound, changing hands for US$29.10 a pound in China and US$28.75 a pound in Europe.

The price is being pushed up by a predicted 10,000 tonne, or 30%, increase in demand for vanadium out of China due to regulatory change in the country where steelmakers were to better reinforce their steels with vanadium from November 1, 2018, to make the steels stronger.

READ: Australian Vanadium offers vanadium expertise to battery industry research centre

Corresponding stricter environmental standards in the Asian country also mean manufacturers are barred from sourcing acid-leached vanadium from the country’s usual go-to source for vanadium in times of short supply — small producers that use stone-coal processing, and leach vanadium from stone coal using acid.

China’s use of tighter environmental standards amid greater demand means producers are looking farther afield, with their hunt having an upwards effect on price.

‘Well viable’ target

Geologist-MD Algar told Proactive Investors the company’s operating costs for Gabanintha project were important to the team which was aiming to be ‘well viable’ at a US$8 a pound vanadium oxide price.

Algar, who is also a contributing member of the vanadium industry body Vanitec, said, “At the moment we’re sitting in a regime where the price is around US$30 — that’s an all-time high, so we don’t want to be living there.

“One of the scenarios we put forward in the base case was US$13 (a pound) for the first five years, and then US$8 (a pound) for the next five years ... till the end of the mine life thereafter. And that gave us an NPV base of about US$575 million dollars with an IRR of 33.6%.”

Like the three other base cases modelled, the scenario also assumed opex was US$4.28 a pound or US$4.13 a pound vanadium equivalent.

 

The base case life-of-mine (LoM) price estimate was US$13 a pound, meaning the base case NPV8 of US$1.1 billion had a 39.5% IRR.

Algar acknowledged some people preferred NPVs to be calculated with a 10% discount (NPV10s), saying NPV8 and NPV10 figures were likely to be presented in the final PFS.

He said Australian Vanadium believed opex cost was the most important part of the equation, as the bottom of the cost curve for vanadium production was about US$4 a pound, with many producers sitting in the US$4 to US$6 a pound range.

The bottom price for vanadium sales was about US$2.25 a pound, seen at the beginning of 2016, with the price gaining more than 10 times over since the start of 2017 when the price was about US$3.50 a pound.

With the structural market-changes to supply and demand, the future price of vanadium is unlikely to reach these lows again.

Comparison to peers

Vanadium is an in-demand critical mineral on the US Government’s Final List of Critical Minerals 2018, published in May 2018.

The weather-resistant alloy helps improve tensile strength of steel and alloys, and supports fuel efficiency in the automotive and aerospace industries with its high strength-to-weight ratio.

Vanadium also allows for large-scale energy storage when used in vanadium redox-flow batteries (VRFBs).

About 85% of the world’s production comes from magnetite deposits found in South Africa, Russia and China, with supply from the three countries trending down from 98% in June 2001.

About 91% of world demand for vanadium comes from the steel industry, but so-called energy industry disruptors are expected to push the figure down to 70% as the energy storage business takes off.

#vanadium made the list of US #criticalminerals — how many can WA supply? @westaustralian @BillJohnstonMLA #mining https://t.co/oy02BS6XQm

— Australian Vanadium (@AusVanadium) May 19, 2018 BIG PICTURE: The recent stellar growth from Bushveld Minerals may just be a harbinger of things to come

Australian Vanadium’s Gabanintha project has been compared to the large layered intrusion known as the Bushveld complex in South Africa.

The complex has been estimated to host more than half of the world’s vanadium, platinum, chromium and refractory minerals.

Australian Vanadium described its Gabanintha resource as a ‘Bushveld complex-sized area’.

The Gabanintha deposit has been outlined over more than 11 kilometres of drilled strike length, in area with good access to infrastructure.

MD @VincentAlgar & our exploration manager are attending @CSIROnews workshop 'Magmatic ore deposits and battery metals' in Perth today, featuring experts from @WitsUniversity talking about @BushveldMin_Ltd Bushveld complex #vanadium pic.twitter.com/AuUvLqGNFn

— Australian Vanadium (@AusVanadium) November 30, 2018

The company acknowledges it will be compared to three key players in the vanadium business that sit at the bottom of the cost curve, producing vanadium pentoxide in the range of US$1 to US$4.50 a pound.

London-headquartered Evraz plc (LON:EVR) (FRA:EVZ) (OTCMKTS:EVRZF) is the cost king, able to produce on the lowest end of the cost curve.

The company has the Evraz Highveld Steel and Vanadium Corporation Ltd in South Africa and its Evraz Vanady-Tula vanadium pentoxide business in Russia.

Vanady-Tula is the largest producer in Europe.

The Evraz group’s Czech Republic business Evraz Nikom produces ferrovanadium from Vanady-Tula’s vanadium pentoxide to ship to steelmakers across the globe.

READ: Bushveld Minerals pushes ahead with Vametco expansion as vanadium prices rise again

AIM-listed vertically-integrated vanadium producer Bushveld Minerals Ltd (LON:BMN) (FRA:23U) (OTCMKTS:BSHVF) is able to come in at the US$3.50 mark, like its peer Largo Resources Ltd (TSE:LGO) (FRA:LR81) (OTCMKTS:LGORF).

Parent company Bushveld’s subsidiary Bushveld Vanadium produces low-cost vanadium and is also focused on the additional, vertical market of VRFB technologies.

Subsidiary Bushveld Energy meanwhile has ambitions to be both a VRFB energy storage project developer and component manufacturer.

Largo has the Maracas Menchen vanadium mine in Brazil.

South African producers meanwhile can produce vanadium pentoxide at a cost of about US$4.50 a pound.

Other players in the mix are Glencore PLC (LON:GLEN) (JSE:GLN) (OTCMKTS:GLCNF) (OTCMKTS:GLNCY) and Australian-listed juniors such as October 2018 debutante QEM Ltd (ASX:QEM) which has the Julia Creek Oil-Shale and Vanadium Project and Tando Resources Ltd (ASX:TNO) with its SPD Vanadium Project.

READ: Tando Resources intersects mineralisation in all holes at SPD Vanadium Project

Australian Vanadium’s managing director told Proactive the company’s aim was to produce vanadium pentoxide at a cost per pound of between US$1 and US4.50.

He said, “Our target is to be in that range as a producing vanadium mine.

“Now, there are not many of those in the world and this is the most important thing that people must remember.

“The rest of the cost curve is made up by Chinese steel producers producing vanadium from slag, and they’ve got a marginal cost of production between US$4 and US$7.

“So we really have to target ourselves at the bottom of the cost curve, because we have to ride out those cycles over time.”

Resource Update at Gabanintha Vanadium Deposit Increases Indicated Mineral Resource. MD @VincentAlgar commented '...modifications to the #vanadium resource increased the size, added confidence and further reduced risk to the Gabanintha project.' $AVL https://t.co/DXrhojngt3 pic.twitter.com/S2cFj0fXDj

— Australian Vanadium (@AusVanadium) November 28, 2018 Capital structure

Like most corporate leaders Algar has a stake in his company’s success, as an Australian Vanadium shareholder.

Australian Vanadium’s top 20% shareholders had 24.64% of the company on November 28, 2018, while the remaining shareholders had 75.36%.

JP Morgan Nominees Australia Limited was the top shareholder with 52.9 million shares (a 3.11% stake), while second-largest investor HSBC Custody Nominees (Australia) Limited had 40.7 million shares (2.39%) and third-largest shareholder Citicorp Nominees Pty Ltd had 38.7 million shares (2.27%).

Visited one of the worlds biggest #vanadium producers. Can now fully understand the scale $AVL is aiming for & why it requires such detailed preparation. Amazing insight into the production side. Can only say it was an awesome experience. pic.twitter.com/6f3w6oZpkd

— Mastermines (@VanadiumWorld) November 24, 2018 De-risking builds mine life

While Australian Vanadium’s baseline PFS imagines a 17-year mine life, an expected life of more than 20 years is not out of the question.

Efforts to de-risk the project, such as the recent conversion of 70% of inferred resources to indicated resources, may help to extend its mine life.

Geologist Algar said, “I’m very confident of the resource, and as I do that, I’ll bring more and more (resources) into the mine life, making the mine life longer.

“Our target is to push that mine life out to 20, 25, 30 years.”

READ: Australian Vanadium confirms broad high-grade vanadium zone at Gabanintha

De-risking takes commitment.

Algar said, “Our objective is to de-risk (Gabanintha) to the point where it’s very investible, and it can then become the next vanadium project.

“We’re not going to forgo risk reduction for speed.

“Some people might assume that means I want to go slowly, (but) that’s not at all the case — I’m just saying we must do good work.”

 

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Mon, 10 Dec 2018 23:55:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210923/australian-vanadium-prepares-to-submit-final-gabanintha-vanadium-pfs-210923.html
<![CDATA[News - Australian Vanadium boosts vanadium resource derisking project further ]]> https://www.proactiveinvestors.com.au/companies/news/210074/australian-vanadium-boosts-vanadium-resource-derisking-project-further-210074.html Australian Vanadium Ltd (ASX:AVL) has increased the size and confidence of its JORC-compliance resource at its Gabanintha Vanadium Project in Western Australia.

The update is a result of 19 reverse circulation (RC) holes for 1,863 metres and three diamond holes for 368.2 metres.

The updated total resource of 183.6 million tonnes at 0.76% vanadium pentoxide notably features a massive magnetite high-grade zone (HG10) of 96.7 million tonnes at 1.00% vanadium.

The updated estimate provides an improved basis for the pre-feasibility study (PFS) currently being undertaken by the company.

READ: Australian Vanadium offers vanadium expertise to battery industry research centre

AVL’s Managing Director Vincent Algar said, “The modifications to the vanadium resource increased the size, added confidence and further reduced risk to the Gabanintha project.

“The value of the recent drilling of just 19 drill holes along strike and the consequent low-cost addition of Indicated category vanadium resources, key base metal values and important geo-metallurgical parameters to the resource model, added significantly to the quality of the mine plan that will emerge from the PFS.

“The increased understanding and confidence further strengthens Gabanintha’s position as a world-class vanadium project in its size, grade and metallurgical recovery parameters.

Resource upgrade further derisks project

“This important revision to the Gabanintha resource further de-risks the foundations on which we can build an outstanding Australian project.

“This update highlights our ability to leverage our significant strike length advantage to cheaply add more low-risk resource, optionality and mine life to the project.

“Shallower resources are worth more to us than deeper, expensive high stripping ratio resources.

“We have confirmed that the deposit extends at depth, but the long-term value lies in further quality along strike.”

Final PFS due for release in December 2018

The revised JORC resource estimate is now being incorporated into the pending maiden Ore Reserve statement and final PFS, due for release in December 2018.

Algar added: “By incorporating these new results into our PFS, we are better able to attract the attention of key vanadium investors and market participants.”

Furthermore, preliminary benchscale roast leach tests have been successfully completed and downstream testing is underway aimed at the generation of product quality vanadium pentoxide powder.

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Wed, 28 Nov 2018 11:04:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210074/australian-vanadium-boosts-vanadium-resource-derisking-project-further-210074.html
<![CDATA[News - Australian Vanadium offers vanadium expertise to battery industry research centre ]]> https://www.proactiveinvestors.com.au/companies/news/209513/australian-vanadium-offers-vanadium-expertise-to-battery-industry-research-centre-209513.html Australian Vanadium Ltd (ASX:AVL) and subsidiary VSUN Energy have signed an agreement to offer in-kind services to the Future Batteries Industry Cooperative Research Centre (FBI CRC).

The FBI CRC aims to support the development of hubs and precincts of globally competitive battery industries while ensuring a secure supply of battery metals to meet global demand in the transition to new energy systems.

VSUN Energy was established to provide AVL vertical integration opportunities in vanadium supply and battery installation.

 

AVL managing director Vincent Algar said: “It’s great to see the change in focus in Western Australia to not repeat the dig and ship mentality of the iron ore boom.

“We have the opportunity to add real value and develop strong expertise in Australia and, in particular, Western Australia.

“The FBI CRC could help enable industry participants to work together to build a battery industry that will benefit all Australians.”

READ: Vanadium critical for renewable energy storage, hears Technology and Low Emission Minerals Conference

AVL’s expertise in the extraction and processing of vanadium will assist the centre to leverage Australia’s vast mineral resources.

Having produced vanadium electrolyte in Australia, AVL’s pilot plant resource will be of great use to the FBI CRC should its application be successful.

The FBI CRC is being driven by Curtin University, with help from partners such as Tianqi Lithium, the Government of Western Australia, BHP, Pilbara Minerals Ltd (ASX:PLS) the University of Western Australia and Murdoch University.

READ: Australian Vanadium confirms broad high-grade vanadium zone at Gabanintha

AVL has completed a baseline pre-feasibility study for its Gabanintha Vanadium Project in WA, which estimates a net present value (NPV) range for the project that has an upper end of US$2.37 billion when assuming a US$20 per pound vanadium price.

The base case demonstrates robust project fundamentals featuring competitive product costs and financials and will allow AVL to move quickly into piloting and a definitive feasibility study.

Gabanintha has a vanadium resource of 175.5 million tonnes at 0.77% vanadium pentoxide, which includes a high-grade zone of 93.6 million tonnes at 1%.

A recently completed infill drilling program at the project confirmed a consistent 3 to 10-metre-thick zone grading over 1.2% vanadium in 10 of 11 holes.

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Mon, 19 Nov 2018 20:52:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209513/australian-vanadium-offers-vanadium-expertise-to-battery-industry-research-centre-209513.html
<![CDATA[News - Australian Vanadium confirms broad high-grade vanadium zone at Gabanintha ]]> https://www.proactiveinvestors.com.au/companies/news/208074/australian-vanadium-confirms-broad-high-grade-vanadium-zone-at-gabanintha-208074.html Australian Vanadium Ltd (ASX:AVL) has confirmed the thickness, grade and continuity of the vanadium-magnetite mineralisation with infill drilling at its Gabanintha Vanadium Project in WA.

A consistent high-grade zone of over 1.2% vanadium was identified along strike of the existing measured and indicated resources, supporting the ongoing mineral resource update.

The recently completed 1,089-metre drilling program consisted of reverse circulation (RC) and diamond drilling as well as geotechnical work, including 10 televiewer surveys over new and existing holes.

Results will be used in the project’s pre-feasibility study (PFS) which aims to define a low-risk, low-cost process for production of high-purity vanadium products.

 

Highlighted intersections include: 17 metres at 1.03% vanadium and 61.9% iron from 38 metres, including 7 metres at 1.29% vanadium from 41 metres; 17 metres at 1.14% vanadium and 66.5% iron from 81 metres, including 10 metres at 1.28% from 82 metres; and 12 metres at 1.12% vanadium and 68.5% iron from 47 metres, including 8 metres at 1.24% from 48 metres.

All drill holes in the program intersected the massive magnetite layer which is the basis of Gabanintha’s economic studies and currently supports a mineral resource estimate of 93 million tonnes at 1% vanadium.

The magnetite layer averages 14 metres in thickness and intersections in 10 of 11 holes graded over 1.2% vanadium.

Drilling in 2011 intersected high-grade zones – greater than 1.2% vanadium over 3 metres or more – in the same area in four of 11 holes.

READ: Australian Vanadium values Gabanintha at up to US$2.37 billion, shares rise

AVL managing director Vincent Algar said the program had delivered significant information to help finalise the PFS.

He said: “This includes vital geotechnical information as well as additional confirmation of our mineralisation’s tenor and geometry.

“It also demonstrates the benefit of having significant strike length under our control, enabling us to quickly add high-quality, low-risk resources for minimal outlay, to feed the planned operation.

“Further drilling of blocks to the south are planned as we steadily grow AVL’s Gabanintha project into an unassailable position as the world’s next vanadium producer.”

READ: Australian Vanadium completes PFS drilling for resource update

The company appointed geotechnical consultants Dempers & Seymour to manage the geotechnical requirements of the pit design being using in the PFS.

Results from the drilling achieved several PFS goals including: geotechnical data to optimise pit slope angles; advanced downhole telemetry to resolve structural domains at depth; and increasing resolution of oxide, transitional and fresh mineralisation boundaries.

The drilling also extended the drilled strike at Gabanintha by 700 metres, enlarging the development area to 3 kilometres out of 11.5 kilometres available for resource extension.

Detailed analysis to maximise economic returns and reduce and capital operating costs will continue throughout the rest of the year, with favourable outcomes allowing the project to advance to a definitive feasibility study.

The drill program collar plan

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Mon, 29 Oct 2018 21:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208074/australian-vanadium-confirms-broad-high-grade-vanadium-zone-at-gabanintha-208074.html
<![CDATA[Media files - Australian Vanadium’s baseline PFS indicates potential to become low-cost vanadium producer ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10646/australian-vanadiums-baseline-pfs-indicates-potential-to-become-low-cost-vanadium-producer-10646.html Thu, 27 Sep 2018 21:38:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10646/australian-vanadiums-baseline-pfs-indicates-potential-to-become-low-cost-vanadium-producer-10646.html <![CDATA[News - Australian Vanadium values Gabanintha at up to US$2.37 billion, shares rise ]]> https://www.proactiveinvestors.com.au/companies/news/205700/australian-vanadium-values-gabanintha-at-up-to-us237-billion-shares-rise-205700.html Australian Vanadium Ltd (ASX:AVL) has received positive results from its ongoing pre-feasibility study (PFS) on its Gabanintha Vanadium Project in Western Australia.

Significantly, the study estimates a net present value (NPV) range for the project that has a top end of US$2.37 billion when assuming a vanadium price of US$20 per pound.

The base case PFS scenario considers a 17-year initial open-pit mine life with a vanadium pentoxide refinery on site producing 22.5 million pounds of vanadium pentoxide per annum.

The base case life-of-mine (LoM) price estimate is US$13 per pound meaning the base case NPV is US$1.1 billion.

Capital costs are estimated at US$362 million ±35% which includes owner’s costs, contingencies and gas pipeline investment.

READ: Australian Vanadium completes PFS drilling for resource update

AVL’s managing director Vincent Algar said: “Our intention with the ongoing feasibility study work is to understand and design a long-life, low-cost vanadium pentoxide and cobalt concentrate production facility.

“It is essential that all technical aspects are understood and the capital and operating costs minimised, given the cyclical nature of the vanadium markets.

“Achievement of this objective will contribute greatly to a robust business case which will allow continuity of operation across a range of business conditions.”

PFS proceeding on schedule

The PFS is proceeding on schedule which will allow AVL to move quickly into piloting and definitive feasibility study (DFS) upon completion.

This base case demonstrates robust project fundamentals featuring competitive product costs and financials.

Notably, opportunities exist to further reduce costs and increase revenue through mine optimisation and alternative processing strategies.

Metallurgical test work is continuing to further define ore characteristics and vanadium recoveries.

More updates on PFS progress expected

The PFS is divided into three phases which are:

• Phase I – develop a mining and production base case using current metallurgical test work results and proven processing technologies as a basis;
• Phase II – define, analyse and compare a series of options that can potentially lower overall project risk or improve the project financial metrics; and
• Phase III – complete the PFS engineering and estimating to deliver a quality study that demonstrates the potential strong economic returns likely over the life of the project.

AVL will continue to provide updates as the phases are progressed.

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Wed, 26 Sep 2018 11:37:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205700/australian-vanadium-values-gabanintha-at-up-to-us237-billion-shares-rise-205700.html
<![CDATA[News - Australian Vanadium in trading halt pending Gabanintha PFS base case news ]]> https://www.proactiveinvestors.com.au/companies/news/205488/australian-vanadium-in-trading-halt-pending-gabanintha-pfs-base-case-news-205488.html Australian Vanadium Ltd (ASX:AVL) is in a trading halt pending an announcement regarding its Gabanintha Vanadium Project near Meekatharra in Western Australia’s Mid-West.

An announcement is expected about the base case for the project’s pre-feasibility study (PFS).

The ASX has granted the trading halt, which will remain in place until the start of normal trading on Wednesday, September 26, or when an announcement is released to the market, whichever occurs earliest.

AVL last traded at 5.4 cents on Friday, a day in which the share price ranged from 5.2 to 5.6 cents.

READ: Australian Vanadium completes PFS drilling for resource update

Earlier this month the company completed a 14-hole reverse circulation drilling program, which forms part of the PFS work with results to be used for a JORC resource update.

At the time, AVL managing director Vincent Algar said the initial base case scenario was the first step in a series of activities enabling the delivery of a realistic and achievable study to support future investment decisions.

AVL has also pegged a new 49.7 square kilometre tenement at the southern end of Gabanintha, which is prospective for deposit extensions as well as gold, copper and uranium.

Algar stated, “The addition of this strategic tenement provides AVL with potential to define additional mineral resources and consolidates accessibility to all of our deposits in the Gabanintha area.”

READ: Australian Vanadium signs LOI with German battery manufacturer for potential vanadium supply

Recently, AVL also signed a letter of intent with a German vanadium redox flow battery (VRFB) manufacturer which could lead to the company supplying vanadium pentoxide and/or vanadium electrolyte.

SCHMID is keen to secure a material supply of vanadium for VRFB batteries and recognises that the Gabanintha project near Meekatharra in Western Australia as a potential source.

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Mon, 24 Sep 2018 12:48:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205488/australian-vanadium-in-trading-halt-pending-gabanintha-pfs-base-case-news-205488.html
<![CDATA[News - Australian Vanadium completes PFS drilling for resource update ]]> https://www.proactiveinvestors.com.au/companies/news/204475/australian-vanadium-completes-pfs-drilling-for-resource-update-204475.html Australian Vanadium Ltd (ASX:AVL) has completed 14 reverse circulation holes for 1,089 metres at its Gabanintha Vanadium Project in Western Australia.

The drilling is part of the ongoing pre-feasibility study (PFS) and the results will be used to estimate a JORC resource update for the project.

The company has also pegged a new strategic tenement at the southern end of Gabanintha which is prospective for deposit extensions as well as gold, copper and uranium.

READ: Australian Vanadium signs LOI with German battery manufacturer for potential vanadium supply

AVL’s managing director Vincent Algar said: “The addition of this strategic tenement provides AVL with potential to define additional mineral resources and consolidates accessibility to all of our deposits in the Gabanintha area.”

 

AVL is continuing to advance a pre-feasibility study (PFS) for the Gabanintha Vanadium Project with preparation of the initial base case scenario nearing completion.

It is the first step in a series of activities enabling the delivery of a realistic and achievable study, supporting future investment decisions.

Recently, AVL signed a letter of intent (LOI) with a German vanadium redox flow battery (VRFB) manufacturer which could lead to the company supplying vanadium pentoxide and/or vanadium electrolyte.

SCHMID is keen to secure a material supply of vanadium for VRFB batteries and recognises AVL’s Gabanintha project near Meekatharra in Western Australia as a potential source.

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Mon, 10 Sep 2018 11:35:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204475/australian-vanadium-completes-pfs-drilling-for-resource-update-204475.html
<![CDATA[News - Australian Vanadium signs LOI with German battery manufacturer for potential vanadium supply ]]> https://www.proactiveinvestors.com.au/companies/news/203652/australian-vanadium-signs-loi-with-german-battery-manufacturer-for-potential-vanadium-supply-203652.html Australian Vanadium Ltd (ASX:AVL) has signed a letter of intent (LOI) with a German vanadium redox flow battery (VRFB) manufacturer which could lead to the company supplying vanadium pentoxide and/or vanadium electrolyte.

SCHMID is keen to secure a material supply of vanadium for VRFB batteries and recognises AVL’s Gabanintha project near Meekatharra in Western Australia as a potential source.

The letter has been signed on a non-binding basis and is subject to commercial competitiveness.

 

AVL’s managing director Vincent Algar said, “We have built a relationship with SCHMID over the past three years and the letter of intent solidifies our plans with them moving forward.

“For a VRFB manufacturer it is crucial to secure an ongoing supply of vanadium and with our high-grade vanadium deposit moving steadily towards production, we look forward to working closely with SCHMID as a potential client.”

Two-way partnership

In parallel, AVL’s subsidiary, VSUN Energy, has signed an LOI to offer SCHMID’s EverFlow® large-scale and telecom VRFB to its potential clients.

Algar said, “Having the relationship as a two-way partnership with VSUN Energy promoting the EverFlow® systems provides a collaborative space for us to do business.”

READ: Australian Vanadium nearing completion of base case model for PFS

AVL is continuing to advance a pre-feasibility study (PFS) for the Gabanintha Vanadium Project with preparation of the initial base case scenario well advanced.

It is the first step in a series of activities enabling the delivery of a realistic and achievable study, supporting future investment decisions.

The company planned to begin a geotechnical and resource development drill program this quarter to resolve key parameters required for successful and safe long-term open pit design.

This program will also target the conversion of resources from the inferred to the indicated resource category and increase the understanding of the cobalt and base metal resource.

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Tue, 28 Aug 2018 12:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203652/australian-vanadium-signs-loi-with-german-battery-manufacturer-for-potential-vanadium-supply-203652.html
<![CDATA[News - Australian Vanadium nearing completion of base case model for PFS ]]> https://www.proactiveinvestors.com.au/companies/news/202155/australian-vanadium-nearing-completion-of-base-case-model-for-pfs-202155.html Australian Vanadium Ltd (ASX:AVL) continues to advance a pre-feasibility study (PFS) for its Gabanintha Vanadium Project near Meekatharra in Western Australia.

The company is well advanced in preparation of its initial base case scenario for the Gabanintha PFS.

This is the first step in a series of activities that will enable the delivery of a realistic and achievable study, supporting future investment decisions.

READ: Australian Vanadium updates vanadium JORC estimate to include cobalt, nickel and copper

Drill program to commence in August

AVL plans to commence a geotechnical and resource development drill program in this month to resolve key parameters required for successful and safe long-term open pit design.

Drilling will collect geotechnical data to optimise pit slope angles amongst other things such as defining mineralisation boundaries.

The program will also target the conversion of resources from the Inferred category to the Indicated resource category and increase the understanding of the cobalt and base metal resource.

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Fri, 03 Aug 2018 11:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202155/australian-vanadium-nearing-completion-of-base-case-model-for-pfs-202155.html
<![CDATA[Media files - Australian Vanadium preparing to release PFS on Gabanintha project ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9819/australian-vanadium-preparing-to-release-pfs-on-gabanintha-project-9819.html Wed, 11 Jul 2018 09:50:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9819/australian-vanadium-preparing-to-release-pfs-on-gabanintha-project-9819.html <![CDATA[News - Australian Vanadium updates vanadium JORC estimate to include cobalt, nickel and copper ]]> https://www.proactiveinvestors.com.au/companies/news/200149/australian-vanadium-updates-vanadium-jorc-estimate-to-include-cobalt-nickel-and-copper-200149.html Australian Vanadium Ltd (ASX:AVL) has revised its JORC resource estimate for its Gabanintha Vanadium Project near Meekatharra in Western Australia.

The resource now includes an estimation of cobalt, nickel and copper as well as a distinct massive magnetite high-grade zone known as HG10.

The revised resource estimate provides an improved basis for the pre-feasibility study (PFS) being undertaken.

READ: Australian Vanadium in discussions for Gabanintha vanadium offtake and finance deal

AVL’s managing director Vincent Algar said: “This important revision to the Gabanintha resource further de-risks the foundations on which we can build an outstanding Australian project.

“We have developed a unique understanding of the deposit, and our very strong vanadium team will enable us to utilise this knowledge as we advance the project.

“Our timing in respect to supplying the rising vanadium market looks to be ideal.

“We will develop the metallurgical and economic aspects of the project in our PFS, looking to include the needs of potential steel industry offtake and that of the rapidly emerging Vanadium Redox Flow Battery Industry.”

Pre-feasibility studying ongoing

AVL aims to produce a high-quality PFS with a well-defined process flow sheet and is focused on de-risking the project to allow future investment.

The PFS will include a robust options study to assure that the most viable, lowest cost mining and processing operation is pursued.

Initial metallurgical test work and process circuit design work are well advanced.

Work is ongoing on the geo-metallurgical understanding of the mineralised domains to support processing circuit design, performance prediction and mine scheduling.
A detailed mining study including pit optimisation and a preliminary assessment of an initial mine schedule is well advanced.

Opportunity to produce base-metal rich sulphide concentrate

Metallurgical test work has identified the opportunity to produce a cobalt, nickel, copper-rich sulphide concentrate by flotation from the non-magnetic tailings stream.

Further work will be conducted to refine the resource opportunity, concentrate quality and economic benefit.

Revised resource estimate

The revised resource estimate includes a geologically distinct massive vanadium-bearing magnetite high-grade zone, HG10, that is the focus of economic studies.

The combined Measured, Indicated and Inferred resource estimate for the high-grade zone is 93.6 million tonnes at 1.00% vanadium pentoxide.

AVL sees high potential to convert Inferred Resources located along the 11 kilometres of strike length at Gabanintha to the Measured and Indicated categories with additional targeted drilling.

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Thu, 05 Jul 2018 10:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200149/australian-vanadium-updates-vanadium-jorc-estimate-to-include-cobalt-nickel-and-copper-200149.html
<![CDATA[News - Australian Vanadium in discussions for Gabanintha vanadium offtake and finance deal ]]> https://www.proactiveinvestors.com.au/companies/news/199536/australian-vanadium-in-discussions-for-gabanintha-vanadium-offtake-and-finance-deal-199536.html Australian Vanadium Ltd (ASX:AVL) is in discussions with a private Chinese steel and alloy producer regarding project finance and offtake of vanadium oxides from the Gabanintha project in Western Australia.

The company has signed a non-binding MOU with Win-Win Development Group which could lead to the purchase of vanadium for steel strengthening.

This development resulted in AVL’s shares increasing almost 8% in early trade to 4.4 cents.

READ: Australian Vanadium's test work points to low-cost beneficiation for Gabanintha vanadium

Managing director Vincent Algar said, “The Win-Win team are fully in-tune with the needs of the vanadium alloy market in China.”

Win-Win building VCN plant

Win-Win is building a 5,000 tonnes per annum vanadium carbon nitride (VCN) production line which annually requires 7,000-8,000 tonnes of 98% vanadium pentoxide.

The first stage will require 2,000-3,000 tonnes annually and be operational in 2019 and the second stage is planned for 2020.

Win-Win has a shareholding in an operating production line that annually produces 2,400 tonnes of VCN products for existing steel companies.

Synergies with Gabanintha development

The timing of the Win-Win development and full production has strong synergies with the planned development of AVL’s Gabanintha Vanadium Project.

READ: Australian Vanadium adds another battery metal to the mix at Gabanintha Vanadium Project

Algar said: “Their development plans will set them up as a significant supplier of VCN to feed the rising demand for this feedstock as the new rebar standards are implemented.

“Win-Win has undertaken due diligence and identified AVL’s Gabanintha project as the one most likely to be able to provide the grade and quantity of product they require for the future.

“The addition of a substantial agreement with a steel and alloy producer creates a firm foundation with which Gabanintha can participate in the most established market for vanadium.

“We look forward to continuing discussions around the financing and development of the Gabanintha project.”

AVL visit to China

During a recent visit to China by AVL, the two companies finalised the wording of the MOU.

The trip to Chengdu included visits to the Win-Win offices and a site visit to the operating VCN plant at Win-Win’s sister company.

Win-Win’s management team with AVL at the Win-Win head office in Chengdu.

Initial contact with the group was undertaken by AVL’s China consultancy Mastermines, which has developed the relationship to this stage.

VCN often preferred

VCN is an alloy prepared by the reaction of vanadium oxides, graphite and nitrogen.

The reaction creates a VCN product that is sold to steelmaking plants for the manufacture of micro-alloy steels, specifically in the major consumer of vanadium - steel rebar.

In China, VCN is often preferred over FerroVanadium in steelmaking as it requires less vanadium to achieve the same strength characteristics but produces a finer steel product.

Gabanintha, which is near Meekatharra, hosts a mineral resource comprising 179.6 million tonnes at 0.75% vanadium pentoxide.

The resource base and positive metallurgical test results provide strong support for the pre-feasibility study, which is underway.

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Tue, 26 Jun 2018 11:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199536/australian-vanadium-in-discussions-for-gabanintha-vanadium-offtake-and-finance-deal-199536.html
<![CDATA[News - Australian Vanadium adds another battery metal to the mix at Gabanintha Vanadium Project ]]> https://www.proactiveinvestors.com.au/companies/news/197409/australian-vanadium-adds-another-battery-metal-to-the-mix-at-gabanintha-vanadium-project-197409.html Australian Vanadium Ltd (ASX:AVL) has added another saleable battery metal opportunity to its flagship Gabanintha Vanadium Project with cobalt, nickel and copper recovered in a sulphide concentrate.

Bench-scale tests on Gabanintha fresh high-grade massive magnetite have resulted in the recoveries from non-magnetic stream.

Sulphide concentrates produced from flotation contain 3.8 to 6.3% base metals, including 1.54 to 2.02% cobalt, 1.36 to 2.58% nickel and 0.82 to 1.70% copper.

READ: Australian Vanadium's test work points to low-cost beneficiation for Gabanintha vanadium

A sulphide recovery circuit will now be evaluated as part of the pre-feasibility study (PFS) processing flowsheet for the project in Western Australia.

Shares are up almost 10% to 4.5 cents.

Managing director Vincent Algar said: “Since we initially identified this opportunity, we have been interested in its implications for the project.

“Adding a high-value battery focused metal to the product suite at Gabanintha could potentially prove an important revenue stream.

“This would further enable AVL’s Gabanintha project to be on the lowest end of the vanadium cost curve.”

 

 

READ: Australian Vanadium continues to advance China-focused vanadium strategy

The company previously reported significant cobalt assays from drilling in fresh rock containing vanadium in magnetite.

Cobalt pricing is at all-time highs due to its position as a strategic battery metal.

Cobalt demand is increasing

Increasing demand for cobalt, as well as demand from consumers for ethically sourced cobalt, has contributed to a price rise to over US$90,500 per tonne.

AVL is preparing a mineral resource update at Gabanintha, which will include sulphur and base metals.

This will allow these components to be included in the pit-optimisation and PFS studies, which are underway.

Further optimisation tests

Further flotation optimisation tests will be undertaken on the bulk composite reserve and future drilling is being designed to target sufficient sample mass.

Microscope image of sulphide concentrate containing 4% cobalt, nickel and copper combined.

This work will allow the company to optimise a sulphide recovery flowsheet, improve concentrate quality and determine an overall base metal recovery.

The company plans to engage with potential Australian and offshore buyers to discuss indicative terms for the sale of a sulphide concentrate.

All-time high cobalt prices and recovery parameters indicated by the work, add support for additional drilling to expand the vanadium resource and better define the sulphide by-product potential.

Potential to increase revenue

Sale of a by-product cobalt, nickel and copper sulphide concentrate has potential to increase revenue at Gabanintha.

Bryah Resources Ltd (ASX:BYH) holds the rights to nickel, copper and gold recovered from any Gabanintha production, however, AVL will benefit from this due to its 14% holding in Bryah.

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Tue, 22 May 2018 10:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197409/australian-vanadium-adds-another-battery-metal-to-the-mix-at-gabanintha-vanadium-project-197409.html
<![CDATA[News - Australian Vanadium's test work points to low-cost beneficiation for Gabanintha vanadium ]]> https://www.proactiveinvestors.com.au/companies/news/195614/australian-vanadium-s-test-work-points-to-low-cost-beneficiation-for-gabanintha-vanadium-195614.html Australian Vanadium Ltd’s (ASX:AVL) test work continues to deliver excellent results for vanadium from the Gabanintha project with which the company hopes to supply battery and steel markets.

The ongoing tests demonstrate that Gabanintha’s unique high vanadium grade, coarse-grained, massive titaniferous magnetite, allows magnetic upgrading at relatively coarse grind size.

These features support a low-energy beneficiation process, which forms part of a pre-feasibility study (PFS) for the Western Australian project that is underway.

READ: Australian Vanadium continues to advance China-focused vanadium strategy

Shares were up 9% in early trade to 4.9 cents on volume of more than 12 million.

Managing director Vincent Algar said: “It is significant that Gabanintha is rapidly taking its place as a new deposit highly comparable to the few existing global vanadium mining operations.

“Key factors such as the high concentrate mass yield, high vanadium recovery and excellent magnetic concentrate quality with very low deleterious elements silica and alumina, allow that comparison.

“In addition, the coarse grind size and associated low comminution energy demand, all add to the high potential for a lower capital, and low operating cost beneficiation plant to feed downstream vanadium processing.”

READ: Australian Vanadium raises $3 million to advance Gabanintha Vanadium Project

The aim of the test work is to determine comminution parameters for Gabanintha’s high-grade vanadium material, as well as determining the potential recovery and quality of concentrate.

Ongoing tests are being carried out on 24 large diameter diamond core samples with a focus on geometallurgical characterisation, flowsheet development and further optimisation of concentrate yield and quality.

An electrolyte pilot plant used in the test work.

AVL’s comminution and beneficiation test program is being conducted on multiple diamond core samples.

Focus on concentrate recovery

The major focus is on the recovery of a vanadium concentrate from the high-grade zone of massive titaniferous magnetite.

This zone grades 1.06% vanadium pentoxide in the measured and indicated resource categories, averages over 20 metres in thickness, extends over 11 kilometres of strike and is open at depth.

Optimising beneficiation process

Algar said: "Our aim is to continue to develop our geometallurgical understanding of the Gabanintha mineralisation and optimise a beneficiation process to support a simple, low-cost flowsheet to take to our PFS.

“AVL now has a very strong technical team in place, with experience in vanadium production, VRFBs and in the production of electrolyte.”

Gabanintha Delivers High Grade #Vanadium Concentrates - Grade and yield of magnetic concentrates sets project apart $AVL https://t.co/CS6YKHj2o2 pic.twitter.com/QSUUL9APV5

— Australian Vanadium (@AusVanadium) April 24, 2018

Optimisation of concentrate quality has significant economic implications for the more cost-intensive downstream recovery processes for vanadium.

Primary PFS focus

The primary focus of the PFS is delivery of high specification products suitable for battery and steel markets.

Key aspects being completed in parallel with the remaining tests include environmental studies, native title negotiations, mining lease grant, process flowsheet development and preliminary mine modelling.

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Tue, 24 Apr 2018 11:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195614/australian-vanadium-s-test-work-points-to-low-cost-beneficiation-for-gabanintha-vanadium-195614.html
<![CDATA[News - Australian Vanadium will present vanadium story for first time during Benchmark World Tour ]]> https://www.proactiveinvestors.com.au/companies/news/195322/australian-vanadium-will-present-vanadium-story-for-first-time-during-benchmark-world-tour-195322.html Australian Vanadium Ltd (ASX:AVL) will join the Benchmark World Tour 2018 which will cover the vanadium energy storage supply chain for the first time.

The tour is run by Benchmark Mineral Intelligence, a price data collection and assessment company specialising in the lithium-ion battery supply chain.

AVL managing director Vincent Algar will provide a keynote presentation when the tour visits Perth, Melbourne and Sydney.

READ: Australian Vanadium continues to advance China-focused vanadium strategy

Participation in Benchmark Minerals’ tour recognises the company’s expertise in vanadium.

Benchmark is most famous for setting the lithium industry’s reference price that is also quoted by Bloomberg and Thomson Reuters.

Tour in its fourth year

The tour, which is in its fourth year, is the world’s leading forum on supply chains for battery technologies and this year will visit 16 cities.

Benchmark Minerals’ managing director Simon Moores said: “Vanadium has huge potential to reshape the global utility storage market.

“At Benchmark, we have seen the utility industry evolve to such a stage that in 2018 it’s clear that its growth has been underestimated.”

“Vanadium’s ‘lithium-ion moment’ is coming,” he added.

READ: Australian Vanadium raises $3 million to advance Gabanintha Vanadium Project

Algar said: “We have been impressed with the way Benchmark Minerals has approached the lithium supply chain and they have gained a lot of respect for their approach to the market.

“I am delighted that vanadium will now take its place next to lithium, cobalt, nickel and graphite as one of the key metals required for the renewable energy-focused future.

“The interest in vanadium redox flow batteries (VRFB) is growing and with countries such as China building batteries like the Rongke Power 200MW/800MWh system, it won’t be long before the engineers involved in projects begin to understand VRFBs’ strengths.

“Indeed, our 100%-owned subsidiary VSUN Energy has recently been approached for quotes for a project where a VRFB was specified in the tender documents.”

AVL holds Gabanintha project

AVL holds 100% of the Gabanintha project near Meekatharra in Western Australia. Gabanintha hosts a mineral resource of 179.6 million tonnes at 0.75% vanadium pentoxide.

This includes a measured resource of 10.2 million tonnes at 1.06% V2O5 and an indicated resource of 25.4 million tonnes at 0.62% V2O5 with the remainder in the inferred category.

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Thu, 19 Apr 2018 15:06:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195322/australian-vanadium-will-present-vanadium-story-for-first-time-during-benchmark-world-tour-195322.html
<![CDATA[News - Australian Vanadium continues to advance China-focused vanadium strategy ]]> https://www.proactiveinvestors.com.au/companies/news/195003/australian-vanadium-continues-to-advance-china-focused-vanadium-strategy-195003.html Australian Vanadium Ltd’s (ASX:AVL) consultant Mastermines is undertaking a second trip to China on behalf of the company to follow up on previous discussions and to target new prospects.

Mastermines’ objective is to identify prospective partners that offer the greatest potential and develop those relationships right through to a successful vanadium mine at Gabanintha in Western Australia.

The consultant is also participating in China’s largest vanadium conference to be held in Wuhan between April 18-20, 2018.

READ: Australian Vanadium raises $3 million to advance Gabanintha Vanadium Project

AVL managing director Vincent Algar said, “We are very pleased with the advancement of the Gabanintha vanadium project. The company is perfectly poised to capitalise on a vibrant vanadium market.

“Within this environment, we intend to rapidly progress to our objective of being the world’s next high-grade vanadium mine.

Mastermines has arranged for about 120 participants at the Wuhan Vanadium Conference to receive a Chinese version of the AVL presentation.

The consultant will also be available to discuss the advancement of the Gabanintha project.

Aiming to identify prospective partners in China

Following on from its visit to China late last year, Mastermines has spent considerable time researching the market and major players. 

In recent months the supply of vanadium has tightened considerably providing an excellent environment for negotiations.

Mastermines’ research has uncovered a number of emerging vanadium enterprises in China to take advantage of the current market conditions.

READ: Australian Vanadium tests confirm project can supply energy storage markets

After the conference, the consultant will continue with meetings planned in a number of key cities and plan to return to China along with AVL management for follow up meetings in May.

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Mon, 16 Apr 2018 14:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195003/australian-vanadium-continues-to-advance-china-focused-vanadium-strategy-195003.html
<![CDATA[News - Australian Vanadium raises $3 million to advance Gabanintha Vanadium Project ]]> https://www.proactiveinvestors.com.au/companies/news/194799/australian-vanadium-raises-3-million-to-advance-gabanintha-vanadium-project-194799.html Australian Vanadium Ltd (ASX:AVL) has placed 75 million shares at 4 cents per share with two institutional investors.

This will raise $3 million before costs with the funds used to advance the company’s flagship Gabanintha Vanadium Project.

Funded through to completion of pre-feasibility study

The funds will take the company through to completion of its pre-feasibility study, as well as providing working capital.

READ: Australian Vanadium adds another expert to lead vanadium pre-feasibility study

The company views Gabanintha as highly comparable in size, grade and metallurgical characteristics to other operating mines.

Institutional support a show of confidence

Australian Vanadium managing director Vincent Algar said: “The placement puts the company in a strong financial position moving forward.

"Attracting institutional investors further confirms the merits of the company’s plans and demonstrates confidence in its management.”

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Thu, 12 Apr 2018 10:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194799/australian-vanadium-raises-3-million-to-advance-gabanintha-vanadium-project-194799.html
<![CDATA[News - Australian Vanadium to raise capital ahead of potential involvement in large power project ]]> https://www.proactiveinvestors.com.au/companies/news/194690/australian-vanadium-to-raise-capital-ahead-of-potential-involvement-in-large-power-project-194690.html Australian Vanadium Ltd (ASX:AVL) has entered a trading halt ahead of a capital raising.

Management expects to be able to make an announcement to the market by Friday regarding the terms of the raising.

Capital would assist Western Australian initiative

Through its subsidiary VSUN Energy, Australian Vanadium has registered its interest for Western Power’s standalone power systems (SPS) project.

READ: Australian Vanadium throws hat in the ring for large demonstration project

The SPS use a combination of renewable energy, batteries and back-up diesel generators, enabling generation, storage and reliable delivery of power.

This wouldn’t be the company’s first foray into using its vanadium redox flow battery (VRFB) technology.

VFRBs have proven track record

Australian Vanadium's VFRBs are non-flammable and provide in excess of four hours of energy.

The battery VSUN Energy installed at a native tree nursery in Busselton in late 2016 is a 10-kilowatt power system with 100 kilowatt-hours of energy storage.

This enables it to deliver 10 kilowatts for 10 hours, or with a smaller load, provide 5 kilowatts continuously for 20 hours.

Project to involve up to 60 locations in regional areas

The project will involve up to 60 locations in regional areas and builds on the successful trial of the technology on six properties in 2017.

It will provide companies like Australian Vanadium an opportunity to supply and install equipment and systems, with national and global interest expected.

Governments lean towards financially robust tenderers

The group’s strengthened balance sheet would assist in funding such a project.

It could also have a positive impact on being selected, as government instrumentalities take into account the financial position of those tendering for such projects.

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Wed, 11 Apr 2018 11:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194690/australian-vanadium-to-raise-capital-ahead-of-potential-involvement-in-large-power-project-194690.html
<![CDATA[News - Australian Vanadium throws hat in the ring for large demonstration project ]]> https://www.proactiveinvestors.com.au/companies/news/194205/australian-vanadium-throws-hat-in-the-ring-for-large-demonstration-project-194205.html Australian Vanadium Ltd (ASX:AVL) through its subsidiary VSUN Energy has registered its interest for Western Power’s standalone power systems (SPS) project.

Western Power has been authorised by the Western Australian government to conduct a large demonstration of SPS.

SPS are hybrid systems which are not physically connected to the existing network.

The systems use a combination of renewable energy, batteries and back-up diesel generators, enabling generation, storage and reliable delivery of power.

An opportunity to showcase vanadium redox flow batteries

Vanadium redox flow batteries (VRFB) have particular strengths which are useful in SPS.

The ability to store large amounts of energy means that there is a reduced reliance on diesel, if sized correctly diesel can be removed altogether.

READ: Australian Vanadium adds another expert to lead vanadium pre-feasibility study

AVL’s managing director Vincent Algar said: “We have been in talks with Western Power since before we installed the battery in Busselton, members of the Western Power staff have visited the battery and been provided with analytical data to further their understanding.

“As a distributor rather than generator, it’s hard for Western Power to install renewable energy systems without regulatory change.

"It’s great to see WA Energy Minster, Hon. Ben Wyatt MLA supporting the renewable energy industry and allowing this type of project to proceed. It will provide valuable lessons to Western Power and the wider energy industry.

“Vanadium batteries aren’t a panacea, but they have their place in the energy market.

“With recently announced projects at Monash University and the University of Adelaide, we are starting to see this Australian invented technology being embraced in its home country.”

The project will involve up to 60 locations

The project will involve up to 60 locations in regional areas and builds on the successful trial of the technology on six properties in 2017.

With all of the identified customers engaged, Western Power is now running a tender procurement process for the demonstration project.

This provides opportunities for Western Australian companies like AVL to supply and install equipment and systems, with national and global interest expected.

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Wed, 04 Apr 2018 13:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194205/australian-vanadium-throws-hat-in-the-ring-for-large-demonstration-project-194205.html
<![CDATA[News - Australian Vanadium adds another expert to lead vanadium pre-feasibility study ]]> https://www.proactiveinvestors.com.au/companies/news/193659/australian-vanadium-adds-another-expert-to-lead-vanadium-pre-feasibility-study-193659.html Australian Vanadium Ltd (ASX:AVL) has appointed Todd Richardson to drive its pre-feasibility study (PFS) for the Gabanintha Vanadium Project in Western Australia.

Richardson is a vanadium production and technical management expert and will take on the role as Gabanintha project manager.

WATCH: Australian Vanadium buoyed by strengthening vanadium demand

His initial contract will be for three months and his role will be to oversee the PFS.

READ: Australian Vanadium receives a price query from the ASX as shares pop

Richardson has over 20 years of vanadium operations’ experience, in both Australia and the US.

He has worked for global vanadium companies in production and technical management roles.

Todd Richardson has worked at a nearby vanadium project

Notably, Richardson has spent time at the Windimurra mine and production site.

Windimurra is located in Western Australia, close to the company’s Gabanintha deposit and is a potential location for processing.

Richardson is the third key appointment for Gabanintha after Brian McNab from consultancy firm Wood and vanadium expert Daniel Harris who is now a technical director.

Primary contractor for the PFS appointed

AVL has outlined that it intends to appoint consultancy firm Wood as the primary contractor for the PFS. 

Financial modelling is already underway and environmental baseline studies have been completed.

The focus will now shift to refining the mining and processing routes.

READ: Australian Vanadium tests confirm project can supply energy storage markets

AVL’s managing director Vincent Algar said: “These appointments build upon the extensive knowledge Daniel Harris has already brought to the company with regard to developing vanadium projects.

“We have made significant advances at Gabanintha this past year and the combination of Todd, Brian and Daniel’s skills will help us structure and deliver this vital next stage.

“We are working actively towards our goal of being the next vanadium mine to market, with our high-grade deposit proving itself to be economically attractive.”

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Fri, 23 Mar 2018 10:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193659/australian-vanadium-adds-another-expert-to-lead-vanadium-pre-feasibility-study-193659.html
<![CDATA[News - Australian Vanadium receives a price query from the ASX as shares pop ]]> https://www.proactiveinvestors.com.au/companies/news/193108/australian-vanadium-receives-a-price-query-from-the-asx-as-shares-pop-193108.html Australian Vanadium Ltd (ASX:AVL) yesterday received a price query from the Australian Securities Exchange (ASX) on the back of rapid share price appreciation.

The price query letter from the ASX noted a 46% rise in price from the company’s low of $0.037 on Monday 12 March 2018 to its intra-day high of $0.054 yesterday Tuesday 13 March 2018.

AVL replies saying all information is in market

AVL responded to the query from the ASX saying it was not aware of any information concerning it that has not been released to the market that might cause such a move in the share price.

The company could only point to its recently announced metallurgical test work update, including commentary on further test work being undertaken.

READ: Australian Vanadium tests confirm project can supply energy storage markets

Test results are not yet available and test work is ongoing.

AVL also noted the increase in the vanadium price, which is now at a 10 year high.

WATCH: Australian Vanadium buoyed by strengthening vanadium demand ]]>
Wed, 14 Mar 2018 08:22:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193108/australian-vanadium-receives-a-price-query-from-the-asx-as-shares-pop-193108.html
<![CDATA[News - Australian Vanadium tests confirm project can supply energy storage markets ]]> https://www.proactiveinvestors.com.au/companies/news/191867/australian-vanadium-tests-confirm-project-can-supply-energy-storage-markets-191867.html Australian Vanadium Ltd (ASX:AVL) tests have confirmed that the Gabanintha project can supply high-quality vanadium products to meet the needs of energy storage and steel-making customers.

The company has completed the latest round of metallurgical test work for high-grade vanadium ore from the project in Western Australia.

Magnetic separation tests have delivered high-yield into primary concentrates.

The first stage of detailed comminution test work has allowed the determination of energy requirements to prepare a consistent-sized ore for later processing in any operations.

WATCH NOW: Australian Vanadium buoyed by strengthening vanadium demand

Vincent Algar, managing director, said: “The definitive work to date is providing us with great confidence that Gabanintha can produce a significant quantity and quality of vanadium concentrate to feed a conventional vanadium roast-leach process.

“We will continue to optimise the recovery to achieve the simplest possible flowsheet to take to our PFS.

“With increasing market demand for vanadium, AVL will be accelerating its development activities to bring vanadium products to the market as soon as possible.”

READ: Australian Vanadium tests boost Gabanintha recovery rates

Magnetic tests demonstrated that fresh high-grade material achieved concentrate recovery of 92.3% vanadium in a 1.42% vanadium pentoxide concentrate with very low silica content, before optimisation.

The transitional high-grade material achieved combined concentrate recovery of 89.2% of vanadium in a 1.4% concentrate, before optimisation.

Transitional concentrate grades of up to 1.72% vanadium pentoxide were achieved, indicating significant upside across the deposit.

Further work is underway to optimise concentrate grade and lower silica and alumina in transition and fresh feed material.

A number of opportunities have been identified to further enhance the concentrate quality and these are being tested in the laboratory.

Consistent energy consumption established

Comminution test work established a consistent energy consumption of 6.9 kWh/t was needed to break material in an AG/SAG milling scenario with a closing screen size of 2.8mm.

Density correlation strongly supports the use of regressed density with iron grade in magnetite.

An average density of 3.6 is applicable to oxide, transition and fresh high-grade materials.

Abrasion index work indicates that ore is only ‘slightly abrasive’, indicating modest wear of comminution equipment.

New test work underway

Algar said: “New test work is already underway to further optimise the work with a view to simplifying the process flowsheet which will form part of the upcoming PFS on the concentrate plant.

“The optimisation of feed quality and yield has significant implications for downstream project economics by ensuring the lowest use of water, reagents and power.

“The objective is for Gabanintha to provide the highest quality processing feed possible from the entire high-grade ore body via the simplest circuit design.”

Large resource at Gabanintha

Gabanintha, which is near Meekatharra, hosts a measured resource of 10.2 million tonnes at 1.06% vanadium pentoxide, an indicated resource of 25.4 million tonnes at 0.62% and an inferred resource of 144 million tonnes at 0.75%.

Within this is a distinct and globally significant, massive magnetite high-grade zone of 92.8 million tonnes at 0.96% vanadium pentoxide.

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Tue, 20 Feb 2018 12:22:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191867/australian-vanadium-tests-confirm-project-can-supply-energy-storage-markets-191867.html
<![CDATA[Media files - Australian Vanadium buoyed by strengthening vanadium demand ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8705/australian-vanadium-buoyed-by-strengthening-vanadium-demand-8705.html Tue, 06 Feb 2018 08:27:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/8705/australian-vanadium-buoyed-by-strengthening-vanadium-demand-8705.html <![CDATA[News - Australian Vanadium tests boost Gabanintha recovery rates ]]> https://www.proactiveinvestors.com.au/companies/news/189760/australian-vanadium-tests-boost-gabanintha-recovery-rates-189760.html Australian Vanadium Ltd’s (ASX:AVL) initial leach test results support the high quality nature of material from Gabanintha Vanadium Project in Western Australia.

Neomet hydrometallurgical process tests returned encouraging first pass results for extraction of vanadium, iron and titanium from oxide samples.

A high-grade oxide sample showed extraction of 96% of vanadium, 87% of iron and 1% of titanium after a one hour hydrochloric acid (HCl) leach.

The titanium was upgraded from 8.8% to 23.4% in the residue.

READ: Australian Vanadium to benefit from rising vanadium prices

A low-grade sample showed extraction of 88% of vanadium, 97% of iron and 33% of titanium after a one hour HCl leach.

Evaluating processing routes

Australian Vanadium has engaged with Neomet and Sedgman to conduct the tests as it evaluates traditional and non-traditional processing routes.

Vincent Algar, managing director, said: “As AVL moves towards defining the exact nature of the Gabanintha operation through its definitive test work, processing circuit design and mine design, we will continue to have all options on the table.

“The exciting results from the initial Neomet leach test work allow us to better understand the potential recovery of other valuable metal credits.”

Additional tests will be considered

The company, together with Sedgman, will consider an additional test work program using the Neomet process following the completion of other ongoing test work.

This includes metallurgical bench scale tests assessing communition, magnetic separation and desilication.

The aim is to provide inputs at a pre-feasibility study level for development of a concentrator plant flowsheet.

This program is on schedule for completion by the end of January 2018.

READ: Australian Vanadium gets positive feedback from vanadium players in China

Algar added: “The company’s previous test work has demonstrated excellent concentrate recovery and we anticipate the work underway will improve that further, as well as providing defined inputs into the next phase of work.

“We are very keen to get on with the pre-feasibility study in this buoyant vanadium market.”

Gabanintha resource

Gabanintha hosts a resource of 179.6 million tonnes at 0.75% vanadium, making it one of the highest-grade vanadium deposits being advanced globally.

The resource includes a distinct, massive magnetite high-grade zone of 92.8 million tonnes at 0.96% vanadium.

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Wed, 10 Jan 2018 09:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189760/australian-vanadium-tests-boost-gabanintha-recovery-rates-189760.html
<![CDATA[News - Australian Vanadium gets positive feedback from vanadium players in China ]]> https://www.proactiveinvestors.com.au/companies/news/188921/australian-vanadium-gets-positive-feedback-from-vanadium-players-in-china-188921.html Australian Vanadium Ltd’s (ASX:AVL) China-specialist consultant Mastermines has successfully concluded its first trip to China on behalf of the company.

AVL is in the process of advancing its Gabanintha Vanadium Project near Meekatharra in Western Australia towards a feasibility study and production.

READ: Australian Vanadium to benefit from rising vanadium prices

Vincent Algar, managing director, said: “We are very pleased with the feedback Mastermines has provided from their recent meetings across China.

“The urgency indicated from vanadium market participants in China gives us further confidence in the steps we are following at Gabanintha.

“We believe that rapidly progressing the path to production will meet the expectations of potential partners”

Communication opened up with leading vanadium players in China

Australian Vanadium has engaged Mastermines, a mining materials promotion and marketing consultancy with an experienced China-focused team.

The objective of the China trip was to meet with key participants in the Vanadium market in order to better understand what is required from potential customers and investors.

Significantly, the trip was successful in opening up communications with leading vanadium players within China and beyond.

Confidential meetings were held with leading battery manufacturers, state owned enterprises and those that have major influence in the market.

Australian Vanadium’s objective is to open the right doors and find partners in China for developing its world class resource.

One of the highest-grade undeveloped vanadium deposits globally

Gabanintha hosts a total resource of 179.6 million tonnes at 0.75% vanadium, making it one of the highest-grade vanadium deposits being advanced globally.

The resource includes a distinct, massive magnetite high-grade zone of 92.8 million tonnes at 0.96% vanadium.

Gabanintha’s existing resource provides a solid basis for the current detailed metallurgical test work and to advance the project towards a detailed feasibility study.

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Mon, 18 Dec 2017 15:43:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188921/australian-vanadium-gets-positive-feedback-from-vanadium-players-in-china-188921.html
<![CDATA[News - Australian Vanadium seeks feedback on the ground in China ]]> https://www.proactiveinvestors.com.au/companies/news/188145/australian-vanadium-seeks-feedback-on-the-ground-in-china-188145.html Australian Vanadium Ltd (ASX:AVL) will be represented by a consultant in meetings in China during the first two weeks of December with new and existing contacts in the vanadium sector.

The company recently appointed Mastermines to assist the company with an Asia focused relationship and marketing strategy.

READ: Australian Vanadium appoints China-specialist to build Asia focused relationships

Meetings are aimed at building relationships for future supply chains and paving the way for more focused visits with the Australian Vanadium executive team early in 2018.

The visit includes meetings with the vanadium electrolyte supplier for the world’s largest battery currently under construction.

Visits are also planned with associations and researchers together with vanadium related enterprises and professionals within the battery and chemical sectors.

The company wants to produce a vanadium product marketable all over the world

Vincent Algar, managing director, said: “As we move towards project development at Gabanintha in Australia we are seeking to understand the potential customers and their product requirements.

“We aim to value-add in Australia and provide a desirable product for both the Chinese markets and other parts of the world, giving us the best chance of making a profitable mining venture for our shareholders.”

READ: Australian Vanadium secures tax refund for the Gabanintha project ]]>
Mon, 04 Dec 2017 09:05:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188145/australian-vanadium-seeks-feedback-on-the-ground-in-china-188145.html
<![CDATA[News - Australian Vanadium secures tax refund for the Gabanintha project ]]> https://www.proactiveinvestors.com.au/companies/news/187817/australian-vanadium-secures-tax-refund-for-the-gabanintha-project-187817.html Australian Vanadium Ltd (ASX:AVL) has received $158,659 from the Federal Government’s Research and Development Tax Incentive Scheme.

This refundable tax offset relates to costs incurred by the company during the 2015-2016 financial year.

Australian Vanadium’s research & development work was focused on new mining and processing techniques for its Gabanintha vanadium project in Western Australia.

READ: Australian Vanadium to benefit from rising vanadium prices

The company is well-positioned to benefit from recent increasing demand and prices for vanadium as it advances its flagship project.

The vanadium price has been rising consistently from its long-term low of US$2.58 per pound in December 2015 to reach prices of over US$10 per pound in October 2017.

During September, the company delivered a vanadium resource upgrade nearly doubling the overall resource at Gabanintha.

As a consequence of the tax refund, Australian Vanadium currently holds over $2.9 million in cash.

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Tue, 28 Nov 2017 08:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187817/australian-vanadium-secures-tax-refund-for-the-gabanintha-project-187817.html
<![CDATA[News - Australian Vanadium eyes commercial feldspar opportunity in South Africa ]]> https://www.proactiveinvestors.com.au/companies/news/187736/australian-vanadium-eyes-commercial-feldspar-opportunity-in-south-africa-187736.html Australian Vanadium Ltd (ASX:AVL) has received promising tantalum, lithium and beryllium results from drilling at the Blesberg Project located in the Northern Cape Province of South Africa.

The company’s pegmatite intersections from 38 holes contains average of >50% feldspar.

Importantly, Australian Vanadium has identified an opportunity for niche, high-value feldspar product with accessory mineral credits.

Drilling confirms extension of pegmatite beyond historical mine

The company’s objective was to assess the value of the lithium-caesium-tantalum (LCT) pegmatites at Blesberg, including the volume of ceramic grade feldspar, spodumene, beryl and tantalite.

The company completed 41 holes (3,128 metres) of reverse circulation (RC) drilling.

Highlight tantalum results include:

- 8 metres at 1,532 ppm tantalum including 1 metre at 8,190 ppm tantalum; and
- 5 metres at 414 ppm tantalum including 1 metre at 1,535 ppm tantalum.

Best lithium and beryllium results:

- 2 metres at 10,505 ppm lithium including 1 metre at 20,100 ppm lithium; and
- 2 metres at 1,000 ppm beryllium including 1 metre at 1,160 ppm beryllium.

The drilling results have confirmed the extension of the pegmatite beyond the historical mine.

The company is now aiming to proceed to calculate and report a resource estimate.

Commercial feldspar opportunity

The main products produced from the historical mining at Blesberg were feldspar, beryl, bismuth, tantalite, columbite, spodumene and mica.

Historical feldspar production from the mine was reported to be of very high quality, with the feldspar being pure white and unstained by iron oxide.

Its coarse grain size and low iron content are an attractive feed for glass making and other ceramic uses.

One of feldspar’s key new uses is in the production of solar glass used in solar cells.

The extension of the Blesberg pegmatite under shallow cover is considered significant, making it potentially amenable to low cost open-cut mining which will be further evaluated by the company.

Metallurgical recovery tests to follow

Australian Vanadium is currently focusing on the opportunity presented by the high quality feldspar mineralisation including the by-product extraction of lithium, beryllium and tantalum minerals.

Samples from the drilling and existing excavation are being collected to complete first-pass, low-cost metallurgical recovery tests.

Confirming the recovery of a significant portion of the high quality feldspar is central to the future of the project.

READ: Australian Vanadium to benefit from rising vanadium prices ]]>
Fri, 24 Nov 2017 11:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187736/australian-vanadium-eyes-commercial-feldspar-opportunity-in-south-africa-187736.html
<![CDATA[News - Australian Vanadium to benefit from rising vanadium prices ]]> https://www.proactiveinvestors.com.au/companies/news/187277/australian-vanadium-to-benefit-from-rising-vanadium-prices-187277.html Australian Vanadium (ASX:AVL) is well-positioned to benefit from recent increasing demand and prices for vanadium as it advances its flagship Gabanintha vanadium project in Western Australia.

The vanadium price has been rising consistently from its long-term low of US$2.58 per pound in December 2015 to reach prices of over US$10 per pound in October 2017.

Vanadium supply has been developing a structural deficit over a number of years, stemming from a combination of low prices, loss of production in South Africa and erosion of existing stockpiles.

This has resulted in the price rises since 2015 and as new, low-cost capacity is not easy or fast to bring to market, AVL believes the vanadium market will be strong for several years to come.

This long term view on bullish pricing and demand in the dominant steel sector, coupled with the growing markets for vanadium in energy storage, support the ongoing evaluation of Gabanintha.

China marketing roadshow planned for November

AVL recently appointed Mastermines as a mining materials promotion and marketing consultancy with an experienced China-focused team.

Mastermines has aggressively commenced activity in China, providing materials and contact information for AVL at the recent ferro alloy summit held in Zejiang, China.

Furthermore, Mastermines will conduct an introductory roadshow on behalf of AVL during November 2017.

It will visit three cities and hold introductory meeting with companies including electrolyte producers, research institutes, battery manufacturers and steel producers.

Metallurgical test work commenced

Bureau Veritas Laboratories was recently appointed to conduct detailed metallurgical test work under the supervision of Wood Group consultants.

The detailed program aims to determine the nature of the mineralised domains present in the resource at Gabanintha so a flowsheet can be designed.

The detailed test work has commenced, with analysis and reporting expected in January 2018.

Once the preferred option for a flowsheet has been identified, AVL will commence a mining study.

Financial modelling also underway

Concurrent with the metallurgical test work program, the technical team at AVL is collating and preparing preliminary economic data.

These preliminary models can then be refined with data flowing from the metallurgical work and subsequent flowsheet analysis.

On the basis of previous work, Gabanintha presents a strong case for processing with an indicative high mass yield to concentrate and high concentrate quality.

Recent Gabanintha resource upgrade

During September, AVL delivered a vanadium resource upgrade nearly doubling the overall resource at Gabanintha.

The updated Measured, Indicated and Inferred Resource was increased by 96% to 179.6 million tonnes at 0.75% vanadium.

This includes a Measured and Indicated Resource of 35.5 million tonnes at 0.75% vanadium.

READ NOW: Australian Vanadium strengthens Gabanintha as a globally significant deposit ]]>
Wed, 15 Nov 2017 18:33:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187277/australian-vanadium-to-benefit-from-rising-vanadium-prices-187277.html
<![CDATA[News - Australian Vanadium appoints China-specialist to build Asia focused relationships ]]> https://www.proactiveinvestors.com.au/companies/news/185977/australian-vanadium-appoints-china-specialist-to-build-asia-focused-relationships-185977.html Australian Vanadium Ltd (ASX:AVL) has engaged China-specialist Mastermines to assist the company with an Asia focused relationship and marketing strategy.

Mastermines will provide AVL with an active approach towards Chinese investment in the future, as the company seeks to develop interest in Gabanintha and markets for its potential products, as a steel additive and for an ever-widening range of energy storage related applications.

Vincent Algar, managing director, commented:

"Making inroads into China and Asia can be costly and time consuming, with Mastermines assisting we will be able to extend our current campaigns to the fastest growing region on the planet."

AVL is focused primarily on advancing Gabanintha towards feasibility and production.

READ NOW: Australian Vanadium moves into detailed metallurgical testing at Gabanintha ]]>
Mon, 23 Oct 2017 10:49:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185977/australian-vanadium-appoints-china-specialist-to-build-asia-focused-relationships-185977.html