Australian Vanadium (AV) will conduct a definitive feasibility study (DFS) for its Gabanintha vanadium project in the Murchison Province of Western Australia.
AV ended 2018 with an option conversion that gave a cash injection of AUD6.2 million (US$4.4m) and a subsequent cash position of AUD9.68m, enabling them to conduct the DFS.
Managing director Vincent Algar said: “Starting 2019 with a healthy cash balance enables us to move swiftly forward with our plans for the Gabanintha project.”
Gabanintha has a proposed annual production rate of 22.5m pounds over a 17-year mine life.
AV’s pre-feasibility study for Gabanintha— conducted last year— indicated an annual estimated production of approximately 900,000 tonnes of 1.4% VO magnetite concentrate, at an average yield of 60%.
A pilot metallurgical study is under way at Gabanintha, with a diamond drilling sample collection programme set to take place in mid-January 2019.
“Timelines can now be accelerated,” said Algar. “The option conversion gives the excellent AV team welcome support for the work they are undertaking to take this world-class vanadium deposit into production.”
Construction on the Gabanintha project is expected to begin in 2021, with production to commence the following year.