Name of the Project
Gabanintha vanadium project.

Location
Murchison district, Western Australia.

Client
Australian Vanadium.

Project Description
A prefeasibility study (PFS) has shown Gabanintha to have a well-defined resource base and robust economics using an industry standard, low-risk method of beneficiation and refining to produce a vanadium pentoxide (V₂O₅) flake product. It has a maiden ore reserve of 18.24-million tonnes at 1.04% V₂O₅, comprising a proven reserve of 9.82-million tonnes at 1.07% V₂O₅ and a probable reserve of 8.42-million tonnes at 1.01% V₂O₅. Envisaged is an openpit mining and beneficiation operation that will produce an estimated 900 000 t/y of magnetic concentrate at a planned grade of 1.4% V₂O₅ and a low 1.75% silicon hydroxide content.

In addition, the PFS proposes the construction of a V₂O₅ refinery producing about 22.5-million pounds of V₂O₅ a year, with an initial mine life of 17 years based on existing measured, indicated and a portion of the inferred mineral resources. Vanadium recovery from the refinery is estimated at 80.4% for an overall V₂O₅ recovery of 64.1%.

A base metals circuit installed in Year 3 will recover an estimated 1 775 t/y sulphide concentrate containing cobalt, nickel and copper in years 3 to 17. The project viability is not dependent on the mining and sale of base metals contained in the schedule.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The ungeared pretax net present value, at an 8% discount rate, is estimated at between $230-million and $2.01-million, based on various pricing assumptions. The internal rate of return is estimated at between 12.4% and 47.5%, based on various pricing assumptions.

Value
The PFS estimates capital costs at $354-million.

Duration
Not stated.

Latest Developments
The body of work completed in the PFS will feed into the definitive feasibility study (DFS). As a result of the level of detail of many study aspects undertaken in the PFS, several areas are now at an advanced stage, and work in 2019 will focus on optimisation and further refinement. The DFS will include a pilot-scale metallurgical study.

Key Contracts and Suppliers
Wood Mining and Metals (plant design and costing, options study and overall compilation of the PFS); Trepanier (geology and resources); Croeser (pit design, optimisation and mine scheduling); Dempers & Seymour (geotechnical consulting); Umwelt (environmental and heritage consulting); Geologica (geology and resources); Biologic (flora and fauna Level 2 surveys and consulting); AQ2 (hydrogeology); Golder (preliminary tailings location, tailings storage facility design); Adaman (energy and logistics); Clean Energy Fuels (energy market supply and delivery); Just HR (human resources planning); SGS (assaying and metallurgical testing); and Microanalysis (materials characterisation consulting).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Australian Vanadium, tel +61 8 9321 5594 or email info@australianvanadium.com.au.