King River Resources Ltd (ASX:KRR) is pleased with progress of a pre-feasibility study (PFS) as it formulates the best commercialisation strategy for development of the Speewah Specialty Metals Project in the East Kimberley region of WA.
Once the PFS is completed the company plans to use the publication of technical and financial information to identify appropriate partners interested in jointly funding a definitive feasibility study (DFS).
The DFS will include scaled up pilot plant programs, alternative production scale scenarios and pre-development applications.
Upon DFS completion, the study partners will jointly share ownership of all technical knowledge surrounding the project and will also have earned an option to acquire a majority direct equity in the project by providing future funding.
As part of the PFS ongoing test work is investigating agitated tank leach of concentrate using sulphuric acid at the Speewah project.
Scoping level capital expenditure and operational expenditure costings have supported the agitated tank concentrate leach option as the preferred process route to produce vanadium pentoxide, titanium dioxide and iron oxide products.
Como Engineers is seeking indicative pricing on other sulphuric acid plants suitable for the project.
A global marketing study of the suite of products KRR is targeting, including the high-purity products, is being undertaken as part of the PFS.
King River has also begun a 31 hole reverse circulation drill program for 1,600 metres at the Junction prospect, near existing vanadium resources, with samples being progressively sent to the assay laboratory.
Definition of additional resources on a Mining Lease may help expedite a development in the future.
The company is engaging a tailings storage facility (TSF) expert to develop the most environmentally sustainable strategy for dealing with any waste from the proposed operation.
About 70% of the mined material is likely to be rejected at the beneficiation stage and may be replaced back into the mined pit.
King River is also working with independent professionals to report alumina and magnesia in its database and include these values in the PFS.