Australian Vanadium Limited (ASX: AVL) has reported a significant update to Mineral Resource categories for The Australian Vanadium Project near Meekatharra in Western Australia.
The company revealed that the Project’s Total Resource has risen 9.5% to 208 Million Tonnes (Mt) at 0.74% V2O5.
The biggest growth came in the Indicated Resource category where the distinct high-grade magnetite zone increased by 115% to 25.1Mt at 1.10% vanadium pentoxide (V2O5).
Total Mineral Resource increased by 9.5% to 208.2Mt at 0.74% V2O5
Managing Director, Vincent Algar, said the combined Measured and Indicated Resource increase to 35.2Mt at 1.11% V2O5, could potentially support a longer mine life.
“In discussions with potential funding and joint venture partners, a de-risked and large resource base has been a key requisite.
“This updated Resource is the result of focused additional drilling and increased understanding of the geological setting. The new Indicated Resources successfully targeted known higher magnetic areas which will benefit the mine planning, adding flexibility to the schedule.
“Flexibility will ensure feed and concentrate specifications are optimal for The Australian Vanadium Project’s process, enabling the recovery of high purity vanadium products.
“The increase in tonnages, both in Indicated and total Resources provides the Company with a globally significant Project comparable to the operating producers Largo Resources and Bushveld Minerals.”
The revised Mineral Resource estimate includes a geologically distinct, massive vanadium-bearing magnetite high-grade zone which is the focus of current economic studies. The Measured, Indicated and Inferred Mineral Resource estimate for this massive magnetite high-grade portion is 87.9 Mt at 1.06% V2O5, which includes 10.1Mt at 1.14% V2O5 in the Measured category, 25.1Mt at 1.10% V2O5 in the Indicated category and 52.7Mt at 1.04% V2O5 in the Inferred category.
The Indicated portion of the Mineral Resource in the high-grade (HG) zone has increased by 13Mt, rising to 25.1Mt at 1.10% V2O5.
Mr Algar said this increase is related to the conversion from Inferred Resources by new drilling, supporting the high degree of geological and grade continuity at the Project.
The majority of Indicated category tonnage increase is from the southern strike blocks 50 and 60 (previously blocks 16 and 8), being:
- Block 50 – 6.7 Mt of Indicated Resource @ 1.10% V2O5.
- Block 60 – 5.1 Mt of Indicated Resource @ 1.18% V2O