Australian Vanadium Limited (ASX: AVL) has progressed on the work being undertaken by the company to integrate the two adjoining projects located across one orebody, following the successful completion of its merger with Technology Metals Australia (TMT).
As part of the optimized feasibility study (OFS) being conducted by AVL to inform the preferred project development pathway for the integrated project, work has progressed to maximize the possible economic return through access to the high-grade southern area of the orebody, which previously straddled the two projects. This work has included metallurgical test work on parts of the orebody adjoining the Yarrabubba deposit.
“This test work bolsters our view that a long-life, high-grade integrated project at the southern areas of the combined project can be defined quickly based on historical work by removing the constraints from TMT’s previously landlocked Yarrabubba deposit and adding to it similar mineralization within the historical AVL deposit,” said CEO, Graham Arvidson. “The team will use this test work within the broader integration studies, with the aim of improving the economics of the project via reduced capital and operating costs. This has the potential to deliver a material increase in value for our shareholders.”
The company has completed metallurgical test work on fresh rock samples from high-grade mineralization areas located in Block 70, adjoining Block 80. Davis Tube Recovery (DTR) test work completed by AVL shows that magnetic vanadium concentrate grades in Block 70 range between 1.45% and 1.55% V2O5, comparable to the grades in Block 80 which generally range between 1.50% and 1.65% V2O5.
For comparison, the AVL bankable feasibility study used a vanadium concentrate grade of 1.39% V2O5 and TMT used a concentrate grade of 1.34% V2O5 in its definitive feasibility study which was based on its northern Gabanintha deposit.
Moreover, AVL is working to better understand the variation in fresh rock mineralogy along strike and to further define the potential of Block 70 for amenability to high iron and vanadium grades in the magnetic concentrate.
The shallower depth of weathering in the southern part of the orebody delivers the potential for a simpler, cost-effective concentrator design.
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