ASX-listed Critical Minerals Group has completed a prefeasibility study (PFS) on the Lindfield vanadium project, which contemplates an integrated openpit vanadium mine near Julia Creek in north-western Queensland, and a vanadium electrolyte manufacturing facility at the Parkes Special Activation Precinct, in New South Wales.

Critical Minerals Group finds the integrated project can produce an average 10 577 t/y of vanadium pentoxide in years one to 16, for lifetime production of 236 351 t - or 73-million litres a year of vanadium electrolyte and 1.57-billion litres over 16 years.

The total mine life, however, has been estimated at 31 years.

The project has an after-tax net present value of A$458-million, an internal rate of return of 18% and a paypack period of seven years. It will require a total A$981-million of capital investment to develop both the mine and manufacturing facility.

Critical Minerals Group says the strong return on investment for the combined Lindfield vanadium pentoxide and vanadium electrolyte production strategy justifies advancing to a definitive feasibility study (DFS) and project approvals towards a final investment decision during 2027.

FURTHER DETAILS

The PFS evaluates three production scenarios: one-million tonnes a year, three-million tonnes a year and four-million tonnes a year in run-of-mine economically mineable mineralised material. Vanadium pentoxide will be produced through downstream manufacturing of vanadium electrolyte for use in vanadium flow batteries.

The three-million tonnes run rate has been identified as the preferred development pathway delivering the highest returns and value.

The project is structured as a staged development, with a vanadium electrolyte facility commissioned ahead of the Lindfield mine using third-party feedstock, which will bring forward first revenue to 2028 and reduce peak funding exposure relative to a conventional single stage build.

Critical Minerals Group will progress three priority workstreams as part of the DFS work, including a metallurgical pilot plant to confirm and improve vanadium recoveries - which is currently 92% from a beneficiation point of view and 74.5% from a process plant recovery perspective - as stated in the PFS.

The company will also seek to secure long-term, competitively-priced supply agreements for sulphuric acid and sodium hydroxide, which together represent a significant proportion of processing operating costs.

Moreover, Critical Minerals Group plans to advance government concessional finance applications alongside binding offtake negotiations to establish pricing certainty and support project financing.