Australian Vanadium has provided an updated prefeasibility study for its Gabanintha vanadium project in Western Australia. It points to “robust” project fundamentals.
Australian Vanadium (ASX:AVL) has released an update to the ongoing prefeasibility study (PFS) at its Gabanintha vanadium deposit in Western Australia, reporting an initial production scenario that demonstrates “robust” project fundamentals.
The production scenario highlights a planned vanadium pentoxide refinery at the project site that would feature a production rate of 10,100 tonnes per year over an initial 17-year mine life.
The study suggests there would be potential for extending operations along strike for 8 further kilometers, which would possibly extend the mine’s life.
The project is set to feature an open-pit mine with a crushing, milling and beneficiation plant, along with a refining plant for final conversion and sale of vanadium pentoxide. Open pit mining and beneficiation operation would produce 900,000 tonnes per year at a planned grade of 1.39 percent vanadium pentoxide of magnetic concentrate.
Operating expenses are estimated at US$4.13 per pound of vanadium pentoxide equivalent, while capital costs came in at US$360 million. The current scenario is based on 43 percent measured resources, 20 percent indicated resources and 37 percent inferred resources.
Australian Vanadium Managing Director Vincent Algar discussed the ongoing study in a statement, explaining its necessity to making the project as robust as possible.
“Our intention with the ongoing feasibility study work is to understand and design a long-life, low-cost vanadium pentoxide and cobalt concentrate production facility,” he said.
“It is essential that all technical aspects are understood and the capital and operating costs minimized, given the cyclical nature of the vanadium markets. Achievement of this objective will contribute greatly to a robust business case which will allow continuity of operation across a range of business conditions.”
The next steps of the PFS are to design and cost different options to improve the project’s financial metrics. The company expects the final PFS will be completed by December 2018, on schedule and on budget.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.