The company’s shares are trading at about 9.6 cents currently, an increase of 540% from the 2017 year-end closing price of 1.5 cents.
While bonanza grade gold hits at Mt Remarkable is a significant catalyst, equally important is King River’s progress on the concept study at the Speewah Vanadium Project in Western Australia.
King River's projects in the Kimberley region of Western Australia
Highlighting the potential scale, Speewah is Australia’s largest vanadium-in-magnetite resource, and comprises a resource of 4.712 billion tonnes at 0.3% vanadium, 2% titanium and 14.7% iron.
King River’s strategy of close space drilling on the Trudi Vein at Mt Remarkable is proving highly effective in the identification and delineation of high-grade gold shoots.
Recent assays from diamond drilling returned an outstanding result of 2 metres at 16.78 g/t gold including 1 metre at 31.80 g/t gold from 15 metres.
Visible gold observed at Mt Remarkable
Significantly, identifying high-grade epithermal gold mineralisation at such shallow depths early in the exploration program has greatly enhanced the prospectivity of the numerous other under-explored vein systems mapped at Mt Remarkable.
The company believes there is genuine potential for repeats of similar high-grade gold shoots to be placed along the known 1 kilometre mineralised strike at Trudi.
The main objective of the concept study is to identify and address the technical hurdles necessary to complete a scoping study into the production of three high-purity, high-value products.
These are high-purity vanadium pentoxide (99.5-99.9% V2O5), titanium dioxide (>99% TiO2) and iron oxide (>68% Fe2O3) products.
Production would utilise a novel hydrometallurgical process using a concentrate derived from the Speewah Central vanadium deposit.
Interestingly, the flat-lying nature of the Speewah mineralisation gives King River the opportunity to mine very large volumes of material with minimum waste.
As an example, 0.4 tonnes of waste to 1 tonne of mineralised material.
King River is also investigating the means for production of vanadium electrolyte products used in vanadium flow batteries.
Vanadium has outperformed cobalt, lithium and nickel
The price of vanadium pentoxide increased by about 160% between May 2017 and May 2018, thanks to tightening supply and strong orders from the steel industry which accounts for 90% of demand.
Vanadium prices outperformed cobalt, lithium and nickel during this period.
Despite limited mined resources, vanadium demand is on the rise as further uses for the metal are uncovered.
Vanadium is used in small amounts to significantly increase the strength of steel or titanium, making it useful in jet engines, high-speed aircraft, gears, axles, crankshafts, and superconducting magnets and ceramics.