www.americanvanadium.com
American Vanadium Corp., formerly Rocky Mountain Resources Corp., is a Canada-based junior mining company. As of November 30, 2010, the Company’s main focus was the development of its Gibellini Project, located in Eureka County, Nevada. In June 2010, the Company initiated a bulk sampling program, comprising collection of samples from both oxide, and transition vanadium zones from four different trenches on the project, and a diamond drill program, which was two-phased. On September 9, 2010, the Company announced that it initiated a feasibility study of its Gibellini Project. In November 2009, the Company sold its interest in the Paris Hills mineral property to Stonegate Agricom Ltd (Stonegate). On September 29, 2010 the Company announced the acquisition of the Del Rio Property, a new vanadium project located approximately eight miles south of the Gibellini Project.
American Vanadium awards engineering contract for Gibellini
American Vanadium (CVE:AVC) said on Monday it has commenced a detailed engineering program for its Gibellini project in Nevada by awarding an engineering and construction management contract to Scotia International of Nevada.
The property, a vanadium deposit located in Nevada, consists of 232 unpatented lode claims and seven placer claims that total 4,254 acres.
Gibellini has a resource of 131.3 million pounds of measured and indicated vanadium grading 0.285 percent, and 48.96 million pounds inferred vanadium grading 0.172 percent.
The scope of the contract includes three different stages through start-up of the mining operation: basic engineering, detailed engineering, and construction management.
As continuation of the work conducted for the feasibility study completed in September, AMEC Environment & Infrastructure will also perform leach pad, civil design and geotechnical studies.
"We are very fortunate our project is located in Nevada as we have access to some of the very best engineering talent in the world,” chief executive, Bill Radvak, said in a statement.
"We have every confidence in Scotia International of Nevada's team to build the plan that will take us though a successful start-up of production."
American Vanadium, formerly Rocky Mountain Resources Corp., is a Canada-based junior mining company, with its main focus on the development of its Gibellini project.
Vanadium is a critical alloying-metal used to strengthen steel and is also growing in importance in the emerging uses of mass energy storage and lithium-vanadium batteries.
In September, a feasibility study reported an after tax cash flow of $275.7 million, an internal rate of return of 43 percent, a net present value of $170.1 million at a 7% discount rate and a 2.4 year payback on investment from start-up.
The report was based on a 3.5 million ton per year operating rate and a 65.9% average recovery rate. According to the study, Gibellini is projected to have an operating cost of $4.10 per pound of vanadium pentoxide, with a selling price range of $7.68 to $13.63 per pound.
The project is expected to have average annual production of 11.4 million pounds and capital costs are projected at $95.5 million, including almost $11 million of contingency costs.
The Vancouver-based company saw its stock rise 2 cents, or 2.04 percent, reaching $1 a share, on Monday on Toronto’s junior venture exchange.
