Australian Vanadium: Vanadium Resource Development Drill Program Completed
Southern block drilling completed to support updated Mineral Resource and classification upgrades for first five years of planned mining at the Australian Vanadium Project.
KEY POINTS
- 7,283 metres of Reverse Circulation drilling completed at the Australian Vanadium Project during September and October 2022.
- 813.5 metres of diamond drilling completed during August 2022.
- Reverse Circulation program infills previous drilling in southern blocks 50, 60 and 70 to underpin updated Mineral Resource with increased classification level.
- Programs provide characterisation material to evaluate expected increases in processed iron and vanadium concentrate grade from the southern blocks.
- Updated Mineral Resource Estimate scheduled for early 2023 which will be used in updated Mine Schedule targeting highest possible V2O5 recovery in concentrate early in the mine life.
- Recent work programs[i] identified:
- Vanadium concentrate grades of up to 1.51% V2O5, confirming near surface opportunities for improving vanadium concentrate grades and recoveries.
- Iron grades in fresh magnetic concentrate of up to 61.0% Fe identified in beneficiation of historical core samples in southern ore blocks, demonstrating potential to improve value of AVL’s FeTi coproduct grade.
- Verification of vanadium concentrate grades greater than 1.39% V2O5 used in AVL’s Bankable Feasibility Study[ii] in the early years of production can contribute positively to project economics.
24TH OCTOBER 2022. Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to advise that a diamond drill program and reverse circulation (RC) drilling of a significant program of works has been completed at the Australian Vanadium Project (“the Project”) at Gabanintha, south of Meekatharra. AVL’s Bankable Feasibility Study (BFS) focused on the Project’s high-grade vanadium horizon at the Gabanintha orebody. The recently completed drilling infills the high-grade vanadium horizon in resource blocks 50, and 60. Ore from these blocks are in the current mine plan and scheduled to be extracted at the start of the mining schedule as outlined in the BFS. The drilling completed also greatly improves the resolution of data in block 70, the southernmost block of the current mineral resource and presently excluded from BFS.
Managing Director, Vincent Algar comments, “The prompt and safely executed infill and metallurgical drill program by the AVL geological team provides the Company with a further detailed understanding of the orebody where mining will commence. This program has produced new information that will add significant value to the Project and confirm early Reserves essential for banks and institutional investors as the Project moves towards final funding, approval and development. Completion of the program represents a key value initiative in the current post-BFS, pre-Final Investment Decision (FID) phase of work.”
Drilling results in 2020 and metallurgical work in 2021 identified increased vanadium concentrate grades and iron titanium (FeTi) coproduct grades in the southern blocks. This recently completed drill program (Figure 1) infills drill lines to a spacing of 70m by 30m in the top 100m vertically of early mine-life BFS pit optimisations in block 60 and 50. This is the same drill density which currently supports the Measured Mineral Resource category in northern blocks 15 and 20.
Figure 1 - RC Drilling at the Australian Vanadium Project
Infill drilling to 140m by 30m spacing elsewhere supports an increase of the Mineral Resource to Indicated category in areas of current Inferred Mineral Resource. The initial mining pit at the Project is currently scheduled to commence in block 60.
The new data will further improve the mining schedule optimisation and has the potential to increase project value, while providing excellent definition of expected ore geometry and grades, and anticipated concentrate grades.
Additional drill core now available through the southern blocks will be used to provide sample for whole rock mineralogy studies, further characterising deportment of iron, vanadium and titanium in the high-grade vanadium domain. Further variability testwork is planned, using both core samples and RC samples.
The location of the Project, with Mineral Resource and entire deposit block numbering is shown in Figure 2. Drill holes completed are shown in Figure 3, which also demonstrates the position of the 2022 RC and diamond drilling relative to the BFS pit optimisations, and the current block 70 pit optimisation which is currently excluded from the Mine Schedule.
Figure 2 - Location Map, Fault Blocks and Tenure
Figure 3 - Collar Plan of 2022 Drilling on Total Magnetics Imagery, with high-grade Mineral Resource by Block
Recent relevant work prior to 2022 resource development drilling programs at the Project includes:
- Drilling reported in February 2020 on southern ore blocks identified a shallow weathering profile and exceptional high grade vanadium intersections, including two of the highest grade and width intersections at the Project through the consistent massive vanadium titanium horizon being:
- 22m at 1.25% V2O5 from 32m in 19RRC031, including 15m at 1.44% V2O5 from 37m
- 21m at 1.28% V2O5 from 39m in 19RRC015, including 14m at 1.42% V2O5 from 43m
- The October 2021 Mineral Resource Update[iii] defines Block 70, currently excluded from the BFS mining schedule, as containing an Inferred Mineral Resource of 15.4Mt at 1.00% V2O5. This block is the target of infill drilling for Mineral Resource category upgrade and inclusion in future mine planning.
- Variability testwork released in September 2021 which supports further work on expanding Mineral Resource definition in southern blocks and optimisation studies, due to positive results in upgrading Fe and V2O5.
AVL’s primary focus is on developing high-value vanadium processing and recovery, maximising coproduct opportunities in Fe and maximising economics through detailed understanding of the Project’s mineralisation.
Next Steps
Once all data is returned, including assays and interpretation of down-hole survey data, a geological model update is scheduled. During early 2023, a Mineral Resource Estimate update will be completed, with associated mine studies and financial modelling for the Project to follow.
AVL continues to progress all required statutory approvals with associated studies to drive the Australian Vanadium Project towards an operating world class vanadium mine.
For further information, please contact:
Vincent Algar, Managing Director
+61 8 9321 5594
This announcement has been provided in accordance with the Company's published continuous disclosure policy and has been approved by the Board.
ABOUT AUSTRALIAN VANADIUM LTD
AVL is a resource company focused on vanadium, seeking to offer investors a unique exposure to all aspects of the vanadium value chain – from resource through to steel and energy storage opportunities. AVL is advancing the development of its world-class Australian Vanadium Project at Gabanintha. The Australian Vanadium Project is one of the most advanced vanadium projects being developed globally, with 239Mt at 0.73% vanadium pentoxide (V₂O₅), containing a high-grade zone of 95.6Mt at 1.07% V2O5 and an Ore Reserve of 30.9Mt at 1.09% V2O5 comprised of a Proved Reserve of 5Mt at 1.11% V2O5 and a Probable Reserve of 20.4Mt at 1.07% V2O5, reported in compliance with the JORC Code 2012 (see ASX announcement dated 1st November 2021 ‘Mineral Resource Update at the Australian Vanadium Project’ and ASX announcement dated 6th April 2022 ‘Bankable Feasibility Study for the Australian Vanadium Project’).
VSUN Energy is AVL’s 100% owned renewable energy and energy storage subsidiary which is focused on developing the Australian market for vanadium redox flow batteries for long duration energy storage. VSUN Energy was set up in 2016 and has since become world-renowned for its VRFB expertise. AVL’s vertical integration strategy incorporates processing vanadium to high purity, manufacturing vanadium electrolyte and working with VSUN Energy as it develops projects based on renewable energy generation and VRFB energy storage.
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[i] See ASX Announcement dated 21st September 2021 ‘AVL Prepares for Vanadium Project Growth Opportunity’
[ii] See ASX Announcement dated 6th April 2022 ‘Bankable Feasibility Study for the Australian Vanadium Project’
[iii] See ASX announcement dated 1st October 2021 ‘Mineral Resource Update at the Australian Vanadium Project’
