Neometals Ltd (ASX:NMT) has commenced an update to the 2009 Definitive Feasibility Study (DFS) for its Barrambie vanadium-titanium-magnetite (VTM) project in Western Australia.
The updated DFS will examine staged development options including offshore processing of crushed ore, onsite production of a high-grade concentrate for sale, and refining to produce vanadium chemical products.
The new DFS will be JORC 2012 compliant based on Neometals’ 2018 resource estimate for Barrambie.
READ: Neometals expands titanium vanadium resource at Barrambie
Barrambie is one of the world’s highest-grade hard rock titanium deposits and hosts one of the largest vanadium projects globally.
Optionality afforded by distinct high-grade zones and co-product streams has driven Neometals to consider a staged development approach.
The company is investigating direct shipping ore (DSO) being toll concentrated for sale to processors in China in parallel with the development of on-site concentration and refining operations.
Staged development strategy being evaluated in the updated DFS
Neometals has engaged a range of expert consultants to work on various parts of the updated DFS, which will collectively reveal the technical feasibility and economic viability of each individual stage of development with completion expected in the June quarter 2019.
In parallel, the company is continuing to advance discussions with potential offtake parties for the supply of ore, concentrates and chemical products.
Neometals managing director Chris Reed said: “With strong vanadium pricing and end-users demanding secure supply of quality feedstocks from low-risk jurisdictions, Neometals is moving quickly to capitalise on this significant market opportunity.
“Barrambie has played second fiddle in recent years to our lithium endeavours, however it is to our knowledge, the most advanced, undeveloped greenfields vanadium project globally.
“Our extensive historical exploration and evaluation works enable us to fast track an updated DFS.
“This step-wise approach is consistent with the staged development and de-risking strategy we employed to successfully develop our lithium business.”