Venus Metals Corporation (ASX:VMC) has sidestepped the need to carry out initial exploration with the grant of the Youanmi Project in Western Australia that contains a large vanadium-titanium-iron resource.
This resource has been historically drill tested along 3.5 kilometre strike length and has a JORC 2012 Inferred Resource of 330.6 million tonnes at 0.29% V2O5, 5.95% titanium and 19.41% iron.
The estimate for Venus was carried out by Widenbar and Associates based on the historical reverse circulation and diamond drill holes.
Upside potential exists with strong geological evidence that the resource continues for many kilometres along strike within the Venus tenements.
Youanmi Vanadium Project
The Youanmi Vanadium Project tenement E57/986 covers 210.9 square kilometres and is located about 42 kilometres southeast of Windimurra and 4 kilometres west of Youanmi Mining Centre.
Venus holds a 90% interest and the prospector holds a 10% interest in this tenement.
The surrounding areas of this tenement contain numerous gold, zinc (+copper) occurrences or deposits.
During late 1990’s Australian Gold Resources Pty Ltd (AGR) carried out reconnaissance surface sampling, aeromagnetic data acquisition and interpretation, geological mapping, reverse circulation drilling, metallurgical test work and resource estimation.
After the identification of vanadiferous horizons from surface sampling and aeromagnetic interpretation, 101 vertical reverse circulation holes were drilled at 80 metre spacing on 4 lines approximately 640 metres apart.
Of these, 74 holes fall within E57/986.
Subsequently a diamond drilling program was carried out during 2010 by Youanmi Metals comprising 11 holes for 637.5 metres targeting vanadium-titanium-iron mineralisation which confirmed the presence of thick layers Vanadiferous Magnetite in this tenement.
The current vanadium pentoxide (V2O5) market price is approximately US$11,000/tonne.
Vanadium prices are expected to increase over the next 5-10 years due to heightened international competition and supply deficits.
Until recently the vast majority (92%) of vanadium is used in steel industry to produce tool, high speed and high alloy steels containing 20% vanadium
The recent emergence of vanadium redox flow batteries for high efficiency grid energy storage applications and incorporating vanadium in lithium batteries is expected to strong increase the use of vanadium.
India and China have also emerged as heavy consumers of the commodity in recent years.
Booming construction is expected help drive prices upwards, and is estimated that 2013-2020 the vanadium market will show a 5.2% compound annual growth.
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