Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has achieved strong metallurgical success post-merger with Technology Metals Australia Ltd (TMT), generating vanadium concentrate grades of up to 1.6% from metallurgical test-work on the Block 70 project, consistent with results from the Yarrabubba deposit.
The company’s efforts also produced iron grades in concentrate of more than 60%, confirming that both vanadium and iron grades increase toward the south of the combined project areas.
AVL says this information supports further investigation of a commercial-scale ilmenite product, an iron-oxide mineral similar to hematite and the core source of titanium dioxide which could be produced from the company’s assets.
Material increase in value
“This test-work bolsters our view that a long-life, high-grade integrated project at the southern areas of the combined project can be defined quickly based on historical work by removing the constraints from TMT’s previously landlocked Yarrabubba deposit and adding to it similar mineralisation within the historical AVL deposit,” Australian Vanadium CEO Graham Arvidson said.
“The team will use this test-work within the broader integration studies, with the aim of improving the economics of the project via reduced capital and operating costs.
“This has the potential to deliver a material increase in value for our shareholders.”
Blocks now combined
Prior to the merger, TMT owned tenements at the northern end of the orebody and a small block at the southern end of the orebody, known as the Yarrabubba deposit.
The Yarrabubba deposit was entirely surrounded by AVL’s tenements, significantly constraining development by TMT – an obstacle that has now been removed by the merger of the two companies and the subsequent combination of the two project blocks.
The Yarrabubba deposit has now become Block 80 of AVL’s combined deposit and abuts AVL’s Block 70 deposit.
AVL believe the latest test results from its project lend themselves to a high-grade project optimised across an unconstrained southern strike extent, combining the highest quality areas of both projects.
Shares have been as much as 13.33% higher in ASX trade this morning to A$0.017.