Technology Metals Australia Ltd (ASX:TMT) (FRA:TN6) has resumed drilling at the Yarrabubba Iron Vanadium Project in Western Australia, with a second drill rig starting on January 11.
The project, formerly known as the Southern Tenement, is a satellite project to the wider Gabanintha Vanadium Project.
Diamond drilling is designed to generate a life of mine representative bulk sample for pilot scale test work, as well as collect additional geotechnical data to support open pit design, ore reserve estimation work and to infill the Yarrabubba mineral resource.
Comprising 22 holes for 2,820 metres of mix PQ and HQ sized diamond core, the program is scheduled for completion at the end of January, with processing of the diamond drill core expected to continue through February.
“Significant activity taking place”
Managing director Ian Prentice said: “The company has launched into a very exciting and transformative 2021 with significant activity taking place, both on site at Yarrabubba and in the laboratories in Perth.
“The team is also actively progressing a range of discussions with offtake groups across the full range of expected products to be generated, as well as with prospective development and funding partners.”
Co-operation agreement with Sinosteel
A non-binding letter of intent (LOI) with Sinosteel Australia Ltd is in place with regard to negotiating a life-of-mine offtake agreement over up to 1.5 million tonnes per annum of the premium Yarrabubba iron-vanadium product.
TMT has also executed a technical co-operation agreement with Sinosteel Equipment & Engineering Co Ltd (MECC) to support the Yarrabubba test work and flowsheet design.
This direct engagement during the test work phase has the benefit of Technology Metals receiving early technical input from MECC and for MECC to become familiar with the attractive characteristics of the Yarrabubba orebody.
Metallurgical test work
A round of metallurgical test work on two large, massive fresh composites from Yarrabubba, MASFR1 (300kg) and MASFR2 (90 kg) begun in December 2020.
This test work, designed to confirm the generation of the high grade, high purity iron-vanadium product from the magnetic beneficiation circuit and to further investigate the titanium separation from the non-magnetic tailings, is progressing with results from the magnetic separation test work expected shortly.
Titanium test wok underway
Titanium test work and optimisation, following up on the initial preliminary and un-optimised sighter testwork is now underway following generation of the non-magnetic tailings.
Results from this round of optimised test work are expected to further enhance the titanium product, as well as provide guidance on the expected product yields and will be reported as they become available.
Offtake extension with Shaanxi Vanadium Technology Development Co
A 12-month extension to the previously announced 3,000 tonnes per annum vanadium offtake Memorandum of Understanding (MoU) with Shaanxi Fengyuan Vanadium Technology Development Co Ltd has been negotiated.
The extension reflects recognition of the attractiveness of the high purity Gabanintha vanadium product and reflects a high level of confidence from Fengyuan in the company’s overall project development strategy.
Technology Metals believes the extension is designed to ensure the parties can complete mutual due diligence and progress discussions on the draft offtake agreement in a period, which is still very much impacted by the international travel restrictions imposed as part of the management of the COVID-19 pandemic.
Fully-funded to progress Yarrabubba and Gabanintha
Following the completion of the company’s successful capital raisings in late 2020, Technology Metals enters calendar year 2021 with $9.5 million cash at bank.
These funds will primarily be applied to funding the activities and development of Yarrabubba, as well as progressing environmental approvals and related activities at Gabanintha.
TMT expects that this available capital will comfortably ensure that it is fully funded through to the delivery of the Yarrabubba feasibility study and progression to a development decision, enabling the company to implement its staged development strategy leading to the timely development of Gabanintha.