The revised study confirms primary production of vanadium pentoxide and ferrovanadium from vanadium-rich Central Bands to be technically feasible and economically viable.
The 15-year operation has a capital cost of $692 million and would generate over $2.5 billion in EBITDA in total resulting in a pre-tax NPV of $430 million.
Flow sheet to be evaluated
Forward work programs will focus on the pilot-scale evaluation of a conventional, commercially proven, hydrometallurgical flowsheet.
The process uses atmospheric acid leaching to recover titanium, vanadium and iron products in combination with conventional and proprietary acid regeneration equipment.
Notably, the DFS project economics don’t’ yet consider the impact of exploiting the contained titanium through a whole-of-deposit processing solution.
The optimised flowsheet will then form the basis of the final Neometals Barrambie evaluation, a FEED study.
Earlier this month, Neometals flagged it would pay out around $11 million as a dividend, which will leave it well-funded with a cash balance of $116 million.