Name of the Project
Gabanintha vanadium project.

Location
Gabanintha, Western Australia.

Client
Australian Vanadium Limited (AVL).

Project Description
A preliminary vanadium production scenario has been developed for the project as part of the ongoing prefeasibility study (PFS). This base case demonstrates robust project fundamentals, competitive product costs and financials, with further optimisation potential.

The project contains 175.5-million tonnes at 0.77 % vanadium pentoxide (V₂O₅) containing 1.35-million tonnes of V₂O₅.

The production scenario proposes a V₂O₅ refinery at the Gabanintha site, with a production rate of about 22.5-million pounds V₂O₅ a year over an initial life-of-mine (LoM)of 17 years. Potential exists to extend operations along strike for an additional 8 km, which could extend the mine life.

The production scenario also envisages an openpit mining and beneficiation operation producing an estimated 900 000 t/y at a planned grade of 1.39% V₂O₅ of magnetic concentrate at a planned grade of 1.39% V₂O₅ and a low 1.5% silicone dioxide content.

Average mass yield from the concentrator is estimated at 62.1% for the LoM.

This is exceptionally high, compared with other current operating vanadium operations, allowing for a compact and effective crushing and milling operation.

A base metals circuit will extract an estimated 1500 tpa sulphide concentrate containing cobalt, nickel, and copper1.

The project viablilty is not dependant on the mining and sale of base metals contained in the schedule.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The net present value (NPV) ranges between $191-million and $2.37-billion, depending on the pricing assumption. The NPV is estimated at $1.1-billion using a LoM V2O5 commodity price forecast of $13/lb.

At current V₂O₅ market prices of $20/lb, project NPV is $2.4-billion, highlighting the project’s upside potential.

At a $8/lb V₂O₅ price, the NPV is $191-million, indicating a robust project.

Value
Capital costs have been estimated at $362-million. This includes owner’s costs, contingencies and gas pipeline investment.

Duration
Not stated.

Latest Developments
The PFS is proceeding according to schedule, which will enable AVL to advance quickly into piloting and definitive feasibility study upon completion.

The overall project timing is on schedule for PFS delivery in December 2018.

AVL has indicated that there are opportunities to further reduce costs and increase revenue through mine optimisation and alternative processing strategies.

Metallurgical testwork is continuing to further define ore characteristics and vanadium recoveries.

Meanwhile, detailed infill drilling on the inferred component of the current production scenario is complete, awaiting assay results.

Key Contracts and Suppliers
Wood Group (plant design and costing, options study and overall compilation of the PFS); Trepanier (geology and resources); Croeser (pit design, optimisation, mine scheduling); Dempers & Seymour (geotechnical consulting); Umwelt (environmental and heritage consulting); Geologica (geology and resources); Biologic (flora and fauna Level 2 surveys and consulting); AQ2 (hydrogeology); Golder (preliminary tailings location, tailings storage facility design); Adaman (energy and logistics); Clean Energy Fuels (energy market supply and delivery); Just HR (human resources planning); and Bureau Veritas (assaying, mineralogy and metallurgical testing).

On Budget and on Time?
Not stated.

Contact Details for Project Information
AVL, tel +61 8 9321 5594, fax +61 8 6268 2699 or email info@australianvanadium.com.au.