PERTH (miningweekly.com) – ASX-listed Technology Metals Australia has reported a 32% increase in the ore reserves at its Gabanintha vanadium project, increasing the projected mine life from 16 to 22.5 years.
The company on Wednesday reported that the proven and probable reserve was now estimated at 39-million tonnes, grading 0.9% vanadium pentoxide, which will support a mine life of 22.5 years.
“The maiden southern tenement ore reserve has delivered on providing a material extension to the Gabanintha mine life, with higher grades and vanadium recovery into magnetic concentrate expected to enhance the flexibility for development of this lowest cost quartile, large scale, long-life world-class vanadium project,” said MD Ian Prentice.
“The 22.5-year initial project life is expected to be viewed favourably by prospective project financiers, strategic partners and key stakeholders.”
A definitive feasibility study into Gabanintha found that the project could produce 27.9-million pounds a year of vanadium pentoxide. The study estimated that the project would cost $318-million to develop, and would deliver mine-life earnings before interest, taxes, depreciation and amortisation of A$4.1-billion and an estimated free cash flow of A$1.09-billion