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.
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.