Name of the Project
Gabanintha vanadium project.

Location
Murchison district, Western Australia.

Project Owner/s
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% vanadium pentoxide comprising a proven reserve of 9.82-million tonnes at 1.07% vanadium pentoxide and a probable reserve of 8.42-million tonnes at 1.01% vanadium pentoxide. 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% vanadium pentoxide and a low 1.75% silicon hydroxide content.

In addition, the PFS proposes the construction of a vanadium pentoxide refinery producing about 22.5-million pounds of vanadium pentoxide a year, with an initial mine life of 17 years based on the existing measured and indicated, as well as a portion of the inferred, mineral resources. Vanadium recovery from the refinery is estimated at 80.4% for overall vanadium pentoxide 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 does not depend on the mining and sale of base metals contained in the schedule.

Potential Job Creation
The project is expected to create 500 jobs during construction and a further 240 jobs after construction.

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.

Capital Expenditure
The PFS estimates capital costs at $354-million.

Planned Start/End Date
Not stated.

Latest Developments
The Western Australian Department of Mines, Industry Regulation and Safety has awarded Technology Metals Australia a mining lease for its Gabanintha vanadium project.

The mining lease will be valid for an initial 21-year period, and delivers all tenure required for the development of the vanadium project, including miscellaneous licences for the borefield and camp, as well as general-purpose leases for mining infrastructure associated with the Northern Block.

Key Contracts, Suppliers and Consultants
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.