Horizon Minerals Ltd (ASX:HRZ) strong infill drilling results at Lilyvale deposit within the Richmond-Julia Creek Vanadium Joint Venture Project in central north Queensland have supported an upgraded resource estimate.
Results of up to 9 metres at 0.69% vanadium pentoxide from 2 metres have demonstrated ‘excellent’ grade continuity across the entire strike length.
Resource update
An updated independent resource estimate for Lilyvale stands at 560 million tonnes grading 0.48% V205 for 2.6 million tonnes at a 0.30% V205 lower grade cut-off.
More than 76% of the resource is now in the indicated resource category.
The project is a JV between Horizon and unlisted Richmond Vanadium Technology Pty Ltd (RVT) with RVT earning up to 75% by spending $6 million to March 2021.
“Globally significant" product
Managing director Jon Price said: “Infill drilling at Lilyvale has demonstrated the improved scale and quality of the resource that can be readily upgraded on-site for conventional downstream processing.
“Lilyvale alone can provide globally significant electrolyte and flake product to meet the increasing demand for both the steel and emerging energy storage markets.
“We look forward to the completion of the commercial evaluation as part of the feasibility study.”
Shares higher
Shares are 10% higher to 11 cents, up from 5.4 cents at the close on March 23.
A total of 333 aircore drill holes for 7,817 metres of resource drilling were completed in 2019 and other strong intersections include:
- 10 metres at 0.60% vanadium from 3 metres; and
- 9 metres at 0.64% vanadium from 4 metres.
The new Lilyvale resource takes the global mineral resource for the Richmond-Julie Creek project to 1.8 billion tonnes grading 0.36% vanadium for 6.7 million tonnes vanadium at a 0.30% vanadium lower grade cut-off.
Simulated production tests
With the success of the pre-concentration and downstream tests, test-work has now advanced to simulated production tests, which will be conducted with semi-industrial scale samples through the entire process flowsheet from samples to final product.
An additional 3-4 tonnes of new samples have been dispatched to the metallurgical laboratory to ensure the most representative samples.
Results from these advanced tests are expected in the September quarter of 2020.
Next steps
Mine optimisation studies and commercial evaluation will now be completed on the updated Lilyvale resource model and will form the basis of a feasibility study.
Given the scale of Lilyvale deposit and the potential to produce globally significant quantities of both 98% flake and electrolyte from this resource alone, the key focus of the study will be to determine the optimal concentration and downstream processing flowsheets and associated capital and operating costs.
Further discussions will then be held with potential offtake partners within the steel and energy storage market providers.