Gabanintha is already one of the highest grade V2O5 deposits in the world with a JORC Indicated and Inferred Resource of 125.8 million tonnes at 0.7% V2O5, 8.64% TiO2 and 32.60% iron.
The planned 5,400 metre reverse circulation and 900 metre diamond drilling program is designed to generate an updated Resource estimate.
It will also increase geological definition of the resources including understanding of the oxide, transitional and fresh zones at Gabanintha.
The zone to be drilled represents approximately 16% of the current resource strike length. The program will provide samples for metallurgical testing and allow open pit optimisation studies and ore characterisation to begin.
Yellow Rock is aiming to develop its vanadium resource to supply a high quality V2O5 flake product to the steel market and the emerging Vanadium Redox Battery (VRB) market.
Heritage Agreement and Survey
Earlier this month, the company successfully conducted a heritage survey at the project after signing a Heritage Agreement with the Yamatji Marlpa Aboriginal Corporation representing the Yugunga Nya people over the main Gabanintha lease.
Mining Lease Application
A Mining Lease application has been submitted to the Department of Mines and Petroleum for the Gabanintha vanadium deposit after completing the requirements.
The application is supported by a Mineralisation Report and Supporting Statement which substantiate the reasons for mine development.
MHR Surveyors have completed the marking out the mining lease boundary to provide accurate location data to the Department of Mines & Petroleum.
The supporting documents for the application have been lodged with the department.
This is a significant step forward for the company as it begins in earnest to advance the project towards a detailed feasibility study over the coming year.
Vanadium Market Developments
Yellow Rock has initiated a series of high level studies and is actively engaging with key players in the Vanadium Redox Battery market.
Research by the company indicates that rapid acceleration in the development of renewable energy projects on a global scale is being accompanied by rapidly growing interest in the emergence of grid storage technologies.
One of the strongly emerging technologies is the Vanadium Redox Flow Battery or VRB. The uptake of VRB technology along with other grid storage technologies could have a significant effect on the vanadium (V2O5) market as the use of V2O5 electrolyte is a large component (50% of current cost) of the battery units.
The unique characteristics of VRB’s, specifically their scalability, long lifespan cycles and the use of one battery element, make them a strong candidate to earn up to 30% of the growing energy storage market, which is expected to grow from a current 0.4GW to 40GW in just the next 7 years.
Yellow Rock, as a potential vanadium producer, recognises the importance of the steel markets, but is also actively seeking to link the use of its products to the rise of this globally significant use Vanadium Battery technology.
Besides the future demand for vanadium in energy storage, the metal is also used in the steel sector.
The addition of just 0.2% vanadium increases steel strength up to 100% and reduces weight up to 30%.
The vanadium steel sector is growing at 6.5% per annum with strong demand drivers from High Strength Low Alloy Steel.
- Rebar for construction;
- Buildings, bridges, tunnels;
- Automotive parts;
- Aviation and aerospace;
- Power lines and power pylons;
- Railway lines, railway cars, cargo containers;
- Chemical plants, oil refineries, off-shore platforms;
- Various tools and dyes;
- High strength steel structures; and
- Construction machinery and equipment.
Gabanintha Vanadium Project
Gabanintha is one of the highest grade V2O5 deposits in the world with a JORC Indicated and Inferred Resource of 125.8 million tonnes at 0.7% V2O5, 8.64% TiO2 and 32.60% iron.
It includes a separate high-grade Indicated and Inferred Resource of 60.4Mt at 0.98% V2O5, 11.40% TiO2 and 42.15% iron.
The high grade resource outcrops at surface and exhibits open pit potential.
Drilling has also defined the deposit along 12 kilometres of strike within Yellow Rock’s lease.
Yellow Rock Resources has started drilling that could lead to an upgraded JORC Resource at the Gabanintha Vanadium Project.
Drilling will also provide samples for metallurgical testing and allow open pit optimisation studies and ore characterisation to begin.
The company has also applied for a Mining Lease over the deposit.
With $3.6 million in cash, the E/V of just $4m is light given the potential of the Gabanintha project.
Share price catalysts ahead are:
- Drilling and results from the current program;
- Upgrade JORC Resources at Gabanintha;
- Detailed metallurgical sampling to support upgrade to Concept Study mid-year 2015;
- Progress on the Mining Lease application; and
- Engaging with key players in the rapidly developing Vanadium Redox Battery Market.
Chief executive officer Vincent Algar presented at Proactive Investor’s "Melbourne Investor Luncheon” on Tuesday 24th March 2015, and the "Sydney Investor Luncheon" on Wednesday 25th March 2015. ACCESS LATEST PRESENTATION HERE.
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