Australian Vanadium has been granted a licence for a new tenement south of the Gabanintha vanadium resource near the mining town of Meekatharra in Western Australia.
The company has also completed the first phase of drilling and commenced diamond drilling at the project. Australian Vanadium is currently undertaking a pre-feasibility study (PFS) for its vanadium deposit.
Company managing director Vincent Algar said, “This latest announcement provides important news on more strategic milestones for Australian Vanadium — the drilling returned more intersections of massive magnetites as expected, and the company securing a new 49.7 square kilometres tenement at Gabanintha.
“It is business as usual at Australian Vanadium and the project continues to move at a steady pace towards its study and production objectives.”
At the conclusion of this new drilling campaign, Australian Vanadium will publish an updated Gabanintha resource estimate and identify the key parameters that are required to develop a safe and long-term open pit design.
Algar said, “It is hard to imagine a better time to move a high-grade Australian vanadium project into production as right now.
“After more than doubling in 2017, vanadium prices continue to be supported close to $US20 ($28) per pound in 2018 due to rising demand in the steel sector, particularly from China, and recognition of its potential in new energy storage technology.
“The addition of this strategic tenement provides Australian Vanadium with potential to define additional mineral resources and consolidates accessibility to all of our deposits in the Gabanintha area.”
The Gabanintha project now holds over 240 square kilometres in eight exploration licenses in the Murchison province.