Name of the Project
Gabanintha vanadium project.

Location
The project is located 40 km south of Meekatharra, in Western Australia.

Project Owner/s
Technology Metals Australia.

Project Description
The project has proven and probable reserves of 29.6-million tonnes grading 0.88% vanadium pentoxide. A definitive feasibility study (DFS) has confirmed Gabanintha to be a long-life, low-cost, high-value, relatively low risk and technically strong development opportunity, with a proposed average production rate of 27.9-million pounds a year (12 800 t/y) high-purity vanadium pentoxide product over a more than 16-year operating life.

The peak steady-state production rate is proposed to be about 30-million to 31-million pounds a year (13 700 t/y to 14 200 t/y), which would establish Gabanintha as the world’s largest primary production vanadium producer.

Life-of-mine production is estimated at 447.1-million pounds of vanadium pentoxide.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at an 8% discount rate, of A$1.32-billion and internal rate of return of 34%, with a payback of 3.2 years.

Capital Expenditure
Preproduction process plant capital costs are estimated at A$454-million, inclusive of detailed design engineering work (front-end engineering design study, or FEED); early works ordering of long-lead time items; process plant construction; supporting infrastructure, engineering, procurement and construction management; owners’ costs; purchase of initial reagents; consumables and spare parts; commissioning and contingency.

Preproduction mining capital is estimated at A$16-million, predominantly comprising mining contractor mobilisation and establishment costs. Stage 2 deferred capital expenditure of A$64-million, which is designed to provide benefits for reagent consumption and vanadium recovery, is proposed once the project is in positive cash flow. There will also be working capital required up to and during the commissioning and initial ramp-up phase before the generation of positive cash flow.

Planned Start/End Date
Construction is expected to start in mid-2020 and production in 2022.

Latest Developments
Technology Metals plans to progress offtake and financing discussions over the next few months while advancing environmental approvals and the granting of a mining lease.

The company will also start a FEED study.

Key Contracts and Suppliers
Wave International (DFS); METS Engineering (metallurgical testwork, product assessment and mineral processing); CSA Global (resource and mining study work); Mine Geotech (openpit geotechnical inputs for CSA Global); Integrate Sustainability (environmental, heritage, health, safety and statutory approvals advice and assistance); AQ2 (project water supply and pit dewatering); Hydrologia (surface water assessment); and Biologic Environmental Survey (flora, fauna and subterranean fauna).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Technology Metals Australia, tel +61 8 6489 1600 or email investors@tmtlimited.com.au.