Horizon Minerals’ pre-feasibility study for the Julia Creek vanadium joint venture project with Richmond Vanadium Technology in Queensland has confirmed a vanadium supply of over 100 years from the Lilyvale deposit.
The mineral resource study based on an initial 20 year life of mine for the Lilyvale deposit stands at 560 million tonnes of vanadium, which would be accessed by shallow open pit mining producing 81.2 million tonnes of product at a fully diluted grade of 0.49 per cent vanadium oxide.
Horizon managing director Jon Price said that the Lilyvale deposit alone has the potential to provide “globally significant supply for the next 100 years”.
“Our joint venture partner Richmond Vanadium Technology has done an excellent job demonstrating the quality and viability of this world class oxide vanadium resource,” Price said.
“The Lilyvale deposit can provide supply for the next 100 years and easily expand production to meet the increasing demand from both the steel and emerging battery storage markets.
“With this increase in demand in coming years and the reduction in the supply of vanadium from steel slags, we see the vanadium price continuing its steady climb and look forward to advancing the project to definitive feasibility study level and commencing commercial production discussions with interested offtake partners.”
Horizon and Richmond formed their joint venture in 2017, with Richmond completing the initial earn in period of $1 million to earn 25 per cent interest in 2018.
Richmond has now commenced its second stage expenditure commitment of $5 million over three years inclusive of a feasibility study to earn a further 50 per cent interest.
The pre-feasibility study represented an annual production rate of 790,000 tonnes of vanadium concentrate, producing 12,701 tonnes of 98 per cent vanadium oxide flake.
To progress the project to production stage, Horizon and Richmond will construct a concentrator, power station, railway siding, bores, administration and accommodation facilities and an offshore refining plant.