PERTH (miningweekly.com) – ASX-listed Neometals has struck a memorandum of understanding (MoU) with Chinese researcher the Institute of Multipurpose Utilisation of Mineral Resources Chinese Academy of Geological Science (IMUMR) to advance the development of the Barrambie titanium/vanadium project, in Western Australia.
The MoU will start with evaluation activities, including a hydrometallurgical processing demonstration plant, and outlines a potential pathway towards a 50:50 joint venture to advance Barrambie.
A revised definitive feasibility study estimated that Barrambie could produce some 6 337 t/y of ferrovanadium over a mine life of 15 years, based on a mineral resource of 280-million tonnes and an ore reserve of 39.9-million tonnes.
The project is expected to require a capital investment of some A$692-million and will have operating costs of $26.27/kg of vanadium in ferrovanadium, and a pay-back period of just over five years.
Neometals MD Chris Reed on Friday said that IMUMR’s commitment boded well for further development at Barrambie, and supported Neometal’s development and acquisition costs to date, to prove up the Barrambie resource as one of the world’s richest titanium and vanadium deposits.
“China is the largest producer of titanium and vanadium chemical products in the world, with applications spanning titanium pigment, aerospace and energy storage applications. Chemical producers need secure long-term sources of upstream feed sources with credentialed partners to undertake mining beneficiation in first world jurisdictions.
“Neometals successfully developed its Mt Marion lithium project by building inherent value and then fast-tracking development with strong partners. We intend to adopt a consistent development approach at Barrambie, albeit retaining a more material joint venture interest in the operating integrated project.”