Intermin Resources Ltd (ASX:IRC) has received further positive metallurgical test work results from the Lilyvale prospect area within the Richmond Vanadium Project in Queensland.
Multiple tests utilising gravity, screening and flotation have resulted in concentrate grades averaging 1.6% vanadium at an overall recovery of 73%.
These results are in line with the target grade of >1.5% vanadium and >70% recovery.
Further optimisation test work is ongoing with a further 4 tonnes of sample transported to China to generate additional concentrate for downstream processing test work.
The project is subject to an earn-in joint venture with AXF Vanadium Pty Ltd whereby AXF can earn 75% by spending $6m by March 2021.
Intermin’s managing director Jon Price said: “The AXF team have done an excellent job to date and the test work results have demonstrated the potential of the project to become a globally relevant producer.
“With vanadium prices hitting new all-time highs of US$34 per pound or over $100,000 per tonne in Australian dollar terms, we look forward to the release of the drilling results, updated models and the pre-feasibility study in due course.”
Test work working towards commencing a PFS
Completion of the first phase of test work is scheduled for mid-2019.
Notably, this will enable the commencement of a preliminary feasibility study (PFS).
Large drilling program commenced
Drilling has commenced at Richmond and Julia Creek with 800 holes planned for a total of 17,500 metres to an average depth of 30 metres within a $1.2 million budget.
Regional drilling will comprise 350 holes for 7,500 metres testing a number of priority targets in both the Richmond and Julia Creek areas.
Drilling to target upgrade to Lilyvale vanadium deposit
Infill drilling at Lilyvale comprises 450 holes for 10,000 metres to upgrade the current Inferred resource of 671 million tonnes at 0.35% vanadium to the Measured and Indicated categories for Ore Reserve conversion.
Lilyvale forms part of the greater Richmond project with a JORC resource of 2,579 million tonnes grading 0.32% vanadium hosted in a soft oxide marine sediment 4 metres from surface.