Australian Vanadium has ended 2018 strong with a cash injection of $6.2 million, allowing it to proceed further into the Gabanintha vanadium project’s definitive feasibility study (DFS).
The company’s option conversion led Australian Vanadium to a cash position of $9.68 million, on top of over 62 million underwritten options at a value of over $1.2 million before costs.
Gabanintha, located in the Murchison Province in Western Australia, has a proposed annual production rate of around 22.5 millipounds over a 17-year mine life.
Its pre-feasibility study (PFS) last year showed an annual estimated production of around 900,000 tonnes of 1.40 per cent V2O5 magnetite concentrate at an average yield of 60 per cent.
Gabanintha’s pilot metallurgical study is now under way. The project is also on track for a diamond drilling sample collection program, scheduled for mid-January this year.
Australian Vanadium managing director Vincent Algar said, “Starting 2019 with a healthy cash balance enables us to move swiftly forward with our plans for the Australian Vanadium Gabanintha vanadium project.
“Timelines can now be accelerated, and … the option conversion gives the excellent Australian Vanadium team welcome support for the work they are undertaking to take this world-class vanadium deposit into production.”
Australian Vanadium predicts Gabanintha construction to begin in 2021 ahead of a start to production the following year.
Vanadium’s demand is predicted to rise further this year, as the steel market transition shows a growing uptake in higher quality steels and vanadium redox flow batteries for energy storage.