Name of the Project
Gabanintha vanadium project.

Location
Murchison district, Western Australia.

Client
Australian Vanadium.

Project Description
A prefeasibility study (PFS) has shown Gabanintha to have a well-defined resource base and robust economics using an industry-standard, low-risk method of beneficiation and refining to produce a vanadium pentoxide (V₂O₅) flake product.

It has a maiden ore reserve of 18.24-million tonnes at 1.04% V2O5 comprising a proven reserve of 9.82-million tonnes at 1.07% V₂O₅ and a probable reserve of 8.42-million tonnes at 1.01% V₂O₅. Envisaged is an openpit mining and beneficiation operation that will produce an estimated 900 000 t/y of magnetic concentrate at a planned grade of 1.4% V2O5 and a low 1.75% silicon hydroxide content.

In addition, the PFS proposes the construction of a V₂O₅ refinery producing about 22.5-million pounds of V2O₅ a year, with an initial mine life of 17 years based on the existing measured, indicated and a portion of the inferred mineral resources. Vanadium recovery from the refinery is estimated at 80.4% for overall V₂O₅ recovery of 64.1%.

A base metals circuit installed in Year 3 will recover an estimated 1 775 t/y sulphide concentrate containing cobalt, nickel and copper in years 3 to 17. The project viability does not depend on the mining and sale of base metals contained in the schedule.

Potential Job Creation
The project is expected to create 500 jobs during construction and a further 240 jobs after construction.

Net Present Value/Internal Rate of Return
The ungeared pretax net present value, at an 8% discount rate, is estimated at between $230-million and $2.01-million, based on various pricing assumptions. The internal rate of return is estimated at between 12.4% and 47.5%, based on various pricing assumptions.

Value
The PFS estimates capital costs at $354-million.

Duration
Not stated.

Latest Developments
The Western Australian Department of Mines, Industry Regulation and Safety has awarded the Australian Vanadium project lead agency status.

This comes after the federal government awarded the project major project status in September 2019.

Meanwhile, a pilot-scale study to prove the process at scale is nearing completion.

Key Contracts and Suppliers
Wood Mining and Metals (plant design and costing, options study and overall compilation of the PFS); Trepanier (geology and resources); Croeser (pit design, optimisation and 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); SGS (assaying and metallurgical testing); and Microanalysis (materials characterisation consulting).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Australian Vanadium, tel +61 8 9321 5594 or email info@australianvanadium.com.au.