New Energy Minerals
DEVELOPING THE WORLD-CLASS CAULA VANADIUM GRAPHITE PROJECT
Graphite – Vanadium
NEW ENERGY MINERALS
ASX : NXE
The Company is currently fast tracking its world-class Caula Vanadium-Graphite project in Northern Mozambique, located along strike from the Syrah Resources Ltd (ASX:SYR) Balama Project, with first cash flows targeted for H2 of 2019 from trial mining operations. New Energy Minerals’ Caula project hosts a JORC (Measured) vanadium-graphite resource of 22 Mt @ 0.37% V2O5 (0.2% cut-off) and 13.4% TGC (8% cut-off) for 81,600 tonnes of vanadium pentoxide (180 million pounds) and 2.93 Mt of contained graphite.
New Energy minerals has a highly experienced Board of Directors, management, finance, exploration and geological team, with a 15-year track record of investment and successful project development in Mozambique and the Africa region. The Company aims to become a major provider of vanadium and graphite, both key components used in battery production.
Share Price Performance
Directors & Management
Ian Daymond – Non-Executive Chairman
Bernard Olivier – Managing Director
Christiaan Jordaan – Non-Executive Director
Cobus Van Wyk – Executive Director & COO
Evan Kirby – Non-Executive Director
Rob Marusco – CFO & Company Secretary
Caula Graphite & Vanadium Project
The high grade of Caula graphite will enable New Energy Minerals to generate a top-quality productat a low cost, maximising margins and providing protection against price volatility. Additionally, results indicate that the project can also concurrently produce high-value vanadium products and a scoping study of the Caula project has been completed, confirming exceptional economics. New Energy Minerals’ subsequent pre-feasibility study (PFS) will build on the scoping study results and is targeted for release in H1-2019.
- Located in Cabo Delgado Provide, Northern Mozambique and along strike from world-class Syrah Resources (ASX: SYR, A$550 million market cap)
- Caula has similar grades to Syrah, but superior graphite metallurgy and integrated vanadium-graphite flowsheet.
- Excellent transport infrastructure with ~25km access road to sealed road leading to ports of Pemba and Nacala
- New Energy Minerals vanadium deposit hosted within vanadium mica and silicate mineral associated with the graphitic schist
- Fully integrated flowsheet to deliver both graphite & vanadium
The Caula Vanadium – Graphite Project
The Caula Vanadium-Graphite Project is focused on critical commodities for the lithium and vanadium battery markets, next generation steel and fire resistant building materials. New Energy Minerals is currently fast-tracking this world-class project which hosts a JORC (Measured) mica-hosted vanadium resource of 22Mt @ 0.37% V2O5 (0.2% cut-off) for 81,600 tonnes of vanadium pentoxide (180 million pounds) with high grade intersections up to 1.9% V2O5.
Caula also hosts, within the same deposit, one of the highestgrade graphite deposits in the world, a JORC (Measured) graphite deposit of 21.9 Mt @ % 13.4% TGC (8% cut-off) for 2,933,100 tonnes of contained Graphite, with high grade intersections of up to 29% TGC. The Company expects Phase 1 trial mining and processing to commence during H2-2019, which will provide early cashflows.
Caula Vanadium-Graphite Resource Estimate
The current Caula Mineral Resource estimate is based on 16 diamond drillholes totalling 2,233.21 metres (484.72m in 2016 and 1,748.49m in 2017) and one reverse circulation (RC) drillhole totalling 99 metres. Drillholes are spaced approximately 85 metres apart along a 540-metre strike length. With the exception of
drillhole MORC004 (-77°), all holes were drilled at inclinations of between 55° and 60° from the horizontal.
The Measured Vanadium-Graphite Mineral Resource totals 22 million tonnes at an average grade of 0.37% V2O5 and 13.4% TGC for 81,600 tonnes (180 million pounds) of V2O5 and 2,993,100 tonnes of contained Graphite.
Plan view of vanadium and graphite mineralisation showing extent of Measured Resource and recently completed 4,000m drilling campaign which is set to increase the Resource base significantly
- Total Life of Mine of 26 years based on current JORC Measured Resources with JORC Resource expected to be increased following the completion of a recent ~4,000m drilling program
- Capital estimates have been subject to stringent independent verification and included appropriate contingencies of 15%
- The Scoping Study assumes that only vanadium concentrates are produced over the life of mine and sold to vanadium treatment plants/roasters in either Mozambique (“over the fence”), South Africa or China at approximately net revenue of US$200/tonne, at the mine gate or a price of US$276/tonne FOB Pemba
- The Company is undergoing further metallurgical testing on the optimal beneficiation process for the vanadium concentrates and results thereof will be announced to the market and incorporated into the PFS where Phase 2 will look at incorporating an appropriate vanadium (>98% V2O5) extraction process
- Conservative product pricing assumptions based on significant discounts to current flake graphite and vanadium prices. US$1,103.50/tonne graphite concentrate basket price and US$40,785/ tonne (US$18.49/lb) vanadium price (>98% V2O5) used in the study
- Current vanadium pentoxide price of US$74,715/tonne (US$33.90/lb) (98% V2O5 flake FOB China)