PERTH (miningweekly.com) – A scoping study by ASX-listed Syrah Resources has placed an $80-million price tag on the development of a vanadium operation at its Balama graphite and vanadium project, in Mozambique.
The scoping study assumed that the project would produce 3 804 t/y to of vanadium powder or flake, grading 98%, and 1 245 t/y of vanadium powder, grading 99.9%, over a 20-year period. These estimates are based on the inferred resource of 1.15-billion tonnes, grading 10.2% graphitic carbon and 0.23% vanadium oxide.
The project was expected to generate sales revenues of $125-million a year and would have a projected yearly earning before interest, tax, depreciation and amortisation of $85-million a year.
The scoping study estimated that the project would have a net present value of $330-million and an internal rate of return of 59%.
Syrah told shareholders that the development of the vanadium project at Balama would occur as a second-stage incremental development following completion of ramp-up and the establishment of graphite production, and would leverage off the proposed graphite plant, site infrastructure and transport logistics.
A previously completed scoping study for the Balama West graphite project placed a $91.6-million price tag on the development of a 1.2-million-tonne-a-year mine, which would have an initial seven-year mine life.
“As demonstrated by the scoping study, the metrics of the Balama vanadium deposit are extremely competitive when benchmarked against other known major vanadium projects currently in advanced stages of development, or being considered for development,” the company told shareholders.
The outcomes from the vanadium scoping study would now be considered in the context of the Balama graphite bankable feasibility study, which was currently under way, to ensure that an integration could be achieved in a cost-effective and technically robust manner.