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By Desmond McMahon– Exclusive to Vanadium Investing News
Mineral Resources Ltd (ASX:MIN) has finalized a joint venture deal with former pearl marketing company Atlantic Ltd (ASX:ATI) to revive the stalled Windimurra vanadium project in Western Australia.
The partnership may strike some as odd, but their agreement to buy and complete the Windimurra vanadium project is no joke.
Atlantic […]
By Desmond McMahon– Exclusive to Vanadium Investing News
The partnership may strike some as odd, but their agreement to buy and complete the Windimurra vanadium project is no joke.
Atlantic will hold a 63 percent stake in the venture and when the project is complete, will become a significant supplier of vanadium – Windimurra is forecast to produce about 7 percent of the world’s vanadium supply.
The partners will acquire 90 percent interest in Windimurra Vanadium Ltd (ASX:WVL), which holds a 100 percent stake in the Windimurra vanadium site, in a deal expected to close by June 30th. The agreement is contingent on Mineral Resources and Atlantic raising between AUS$90 million and AUS$100 million for debt financing and capital to complete the project.
Mineral Resources will continue to operate the crushing and processing plants already on-site at Windimurra under the existing “Build, Own, and Operate” contract with Midwest and enter into a new lump sum contract to complete construction of the plant.
The Windimurra mine has had a troubled history. Located northeast of Perth in Western Australia, the mine was actively operated by Xstrata until the property was sold to Windimurra Vanadium in 2003.
Windimurra fell into receivership in February, 2009. There was hope for Windimurra, in May 2009, Reed Resources was interested in the collapsed mine but nothing materialized and Windimurra went into receivership with the mine 85 percent complete.
Stina starts Phase II in Nevada
Stina Resources Ltd (TSXV:SQA) outlined its exploration plans for the spring and summer of 2010 at its Bisoni McKay Vanadium property in Nevada last week. With a budget for exploration between $500,000 and $750,000, preparations are already underway. Stina is in the process of evaluating their geological results from 2007 and 2008, establishing sample and drill targets, and securing geological field staff and equipment.
In 2007, preliminary recovery tests at the site showed up to a 95 percent extraction of V2O5. In 2008, an NI 43-101 compliant Resource Estimate on an 800 X 500 foot subsection showed 10.6 million indicated short tons of vanadium pentoxide at 0.39 percent at a 0.2 percent cutoff grade. There was an additional 9 million inferred short tons of vanadium pentoxide at a 0.2 percent cutoff grade on a 600 X 500 foot subsection. To date 24 reverse circulation holes and 5 core holes have been drilled at the property.
In 2010, Stina intends to refine and complete the Phase II program initiated in 2007, drilling an additional 18 reverse circulation holes for a total of 7,000 feet and 8 core holes for a total of 4,000 feet. The result would be an expanded drill area of approximately 1,500 feet in length by 100 to 200 feet in width, on which the 2008 resource estimate could be updated.
Stina also intends to complete further metallurgical testing on oxidized, transition and carbonaceous material. A scoping study is being considered, and the company intends to discuss the possibility of an initial pilot plant with the Nevada Bureau of Land Management. Drilling could commence in May and metallurgical testing and resource updates could be ready as early as fall 2010.
The company is also drilling and sampling for gold on its Dime, Kodiak and Zeibright Properties in the United States, but so far insufficient exploration has taken place to define a mineral resource on any of their properties.
With help from Assistant Editor Vivien Diniz