Hardey Resources Ltd’s (ASX:HDY) due diligence shows that two Northern Territory vanadium projects forming part of its proposed acquisition of Vanadium Mining Pty Ltd are in the right neighbourhood.
Preliminary due diligence findings by Hardey’s geology team shows that the two projects more than likely share similar geology and magnetics to TNG Limited’s (ASX:TNG) adjoining Mt Peake project.
This advanced project has a JORC 2012-compliant resource of 160 million tonnes at 0.28% vanadium pentoxide.
READ: Hardey Resources eyes vanadium JORC resource at acquisition targets
Hardey Resources executive chairman Terence Clee said: “Undoubtedly, the two Northern Territory projects are in the right neighbourhood, given the proximity to TNG’s high-calibre Mt Peake VTM operation.
“The aeromagnetic and soil sampling evidence is quite compelling that both projects are highly prospective for vanadium mineralisation.
“Taking a holistic view, the board is delighted the due diligence to date on Vanadium Mining’s six assets across Queensland and the Northern Territory is heading in the right direction.”
Contiguous to Mt Peake
Vanadium Mining’s Wollagalong and Chisholm prospects are contiguous to the Mt Peake tenure, forming the north and east boundaries.
Through aeromagnetic imaging, Hardey’s geology team has verified that Mt Peake’s underlying mineralisation – vanadiferous titano-magnetite (VTM) hosted in layered ultramafics – is similar to anomalies within the two prospects.
Specifically, the Anningie Formation that underpins the VTM mineralisation at Mt Peake, has been mapped into the Wollagalong prospect, representing significant exploration upside.
An aeromagnetic image highlighting the mineralisation.
Historical results to be reviewed
Ongoing due diligence work includes a review of historical surface sampling results across the two projects, which if aligned with aeromagnetic anomalies, can expedite targeting anomalous vanadium within exposed outcrops.
As TNG’s analogue VTM mineralisation is relatively shallow, a comprehensive exploration program comprising drilling, sampling and assaying can be implemented rapidly across the prospects.
This would facilitate potentially modelling a mineral resource.
If shallow VTM mineralisation is confirmed, then open pit mining methods can potentially be utilised to rapidly exploit high-grade VTM ore.
The Arunta region relative to the Wollagalong and Chisholm prospects.
Exploration upside
Hardey believes that this preliminary work shows there is clearly significant exploration upside to uncover additional vanadium mineralisation.
It stated the probability would appear to be higher for Wollagalong given the surface exposures of the Anningie Formation had been mapped within its boundaries.
READ: Hardey Resources’ due diligence increases confidence in Queensland vanadium projects
Due diligence is also continuing on Vanadium Mining’s four Queensland prospects - Sharptooth, Spike, Cera and Petrie.
Hardey’s long-term strategic objective with the vanadium projects is to develop viable operations in Australia and at the Nelly project in Argentina, and results to date are on the right trajectory.