Bryah Resources Ltd (ASX:BYH) owns the rights to minerals including nickel and copper at the Gabanintha Vanadium Project in Western Australia.
Yesterday, Australian Vanadium Ltd (ASX:AVL) revealed a positive pre-feasibility study on the project with a top-end valuation estimate that surpassed US$1.4 billion.
Should the project go ahead and be developed, Bryah stands to gain from the production of any minerals that it owns the rights to.
Most notably, AVL’s the concentrator plant design includes a sulphide flotation circuit which aims to extract minerals that Bryah has the rights to.
READ: Bryah Resources increases inferred base metals resource at Gabanintha
An Inferred base metal JORC resource of 14.3 million tonnes at 666 ppm nickel and 217 ppm copper has been defined at Gabanintha for sulphide-hosted cobalt, nickel and copper.
This is contained exclusively in the fresh massive high-grade magnetite zone (model zone HG10) in Fault Block 20.
An estimated 1,775 tonnes per annum of mixed sulphide concentrate containing 4 to 6% combined cobalt, nickel, and copper will be produced.
AVL to progress to DFS
Positive outcomes and strong vanadium market fundamentals support immediate progression to a definitive feasibility study (DFS).
Further drilling for pilot study is scheduled to commence January 2019.
Bryah to advance from explorer to producer in near-term
Bryah also has a number of other projects in its portfolio located in the Bryah Basin of Western Australia.
These include the Windalah Gold Prospect, the Mount Labouchere Manganese Prospect, and the Horseshoe South Manganese Mine.