PERTH (miningweekly.com) – A concept study by ASX-listed junior Yellow Rock Resources has revealed that about A$230-million would be required to bring the Gabanintha vanadium project, in Western Australia, into production.
The study estimated that a 2.1-million-tonne-a-year-throughput plant would result in vanadium production of 10 000 t/y, with the project estimated to have a mine life of more than 20 years.
With cash operating costs estimated at A$7.26/kg under the production scenario, Yellow Rock could become a competitive vanadium pentoxide producer.
Yellow Rock told shareholders on Monday that there was significant potential within the existing resource to increase the estimated grade of high-grade mineralisation domains by completing targeted infill drilling and using selective modelling techniques.
“There are a number of areas that the study identified that require follow-up development work; however, I consider the results to be highly encouraging,” said Yellow Rock MD Lorry Hughes.
He added that any improvements in the resource grade were likely to positively impact on the project by allowing for lower production rates, and therefore, a lower capital expense project to be more attractive.
Near-term follow-up work programmes were now in advanced planning stages on the back of the concept study results, and would include database improvements, drilling, baseline environmental data capture and initial stakeholder liaisons.