Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has wrapped up the first phase of its optimised feasibility study (OFS) for the Australian Vanadium Project in Western Australia.
This phase focused on determining the optimal location for the downstream processing plant and identifying the primary mining areas to maximise project value.
Following its merger with Technology Metals Australia Limited (TMT) in February 2024, AVL commissioned Wood Group to work on the OFS to consolidate the two adjoining projects into one cohesive operation.
"Key foundations"
CEO Graham Arvidson said: “By focusing on the most promising sections of the orebody and conducting a comprehensive analysis to select the optimal location for the downstream processing plant, we have now finalised the key foundations from which the remaining OFS activities can fully define a ‘stronger for longer’ version of the project which has been unlocked through the recent merger.”
The first phase of the study, completed within the June quarter of 2024, includes three key milestones.
Updated resource estimate
AVL has delivered an updated mineral resource estimate (MRE) for the consolidated project, showcasing a 39% increase in the measured and indicated categories for the high-grade vanadium domain.
This increase also includes improved iron concentrate grades, strengthening the project's overall resource base.
Optimal mining location
The southern blocks of the project have been identified as the preferred initial mining location.
These areas possess higher vanadium and iron concentrate grades and exhibit favourable weathering attributes, making them economically viable for mining.
A trade-off study concluded that Tenindewa, near Geraldton in Western Australia, is the optimal location for the downstream processing plant.
The site offers several advantages, including a shorter gas pipeline, reduced permitting requirements and proximity to existing infrastructure.
This location also promises lower reagent delivery costs and improved economics for the sale of iron concentrate because it is close to the Port of Geraldton.
Government funding
The completion of the first phase of the OFS marks a milestone in AVL's efforts to maximise the project's value.
AVL is leveraging Federal Government grant funding to pursue detailed engineering and accelerate the project schedule by ordering long lead items.
The company remains committed to delivering the project promptly, anticipating growing demand for vanadium flow batteries crucial for the net-zero carbon energy transition.
AVL continues to engage with Traditional Owners and stakeholders as it progresses with approval processes for both the mining and processing plant locations, alongside ongoing offtake and financing discussions.
Further work
“The team will now execute the remaining OFS scope to maximise project definition and bankability while minimising project execution risk,” Arvidson continued.
“In parallel to ongoing OFS works, AVL continues to assess opportunities to utilise Federal grant funding which provides options for activities such as detailed engineering and acceleration of project schedule by proceeding with long lead equipment orders.
“Timely delivery of the project is a key objective for the company in anticipation of growing demand for vanadium flow batteries, which will cornerstone the essential long-duration energy requirements of the net zero carbon energy transition.
“We expect product from the project will largely report to the electrolyte market, primarily in Australia through AVL subsidiary VSUN Energy.”
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