Australian Vanadium Ltd (ASX:AVL) has embarked on a new diamond drilling program to support a resource update at its namesake vanadium play in Gabanintha, WA.
The 10-hole, 900-metre campaign will provide more drill core to feed into variability studies, which are out to determine the concentrated vanadium grade and ferrotitanium co-product in the project’s southern ore blocks.
Recent studies have uncovered up to 1.51% vanadium pentoxide, confirming there are near-surface opportunities to improve the project’s vanadium concentrate grades and recoveries.
Moreover, the grades are higher than the 1.39% used in a historical production scenario, meaning the new findings could positively impact the Australian Vanadium Project’s economics.
AVL’s diamond program will infill on existing lines, defining mineralisation ahead of the project’s mining phase.
From here, the company plans to get a reverse circulation drill rig in for more infill work, designed to verify the grade control level and further improve the mineral resource.
Technical work provides “unique understanding”
Speaking to the program’s commencement, AVL managing director Vincent Algar said: “The excellent geological and metallurgical body of work already completed by AVL’s technical team across the project has provided the company with a unique understanding of the orebody.
“This program is about identifying further value that can add significantly to the project, as well as confirming the early reserves, which are a must for banks and institutional investors as the project moves towards final funding, approval and development.
“The effect of material variability and potential additional value from the southern ore blocks’ feed to the project is a key value initiative underway by the AVL team in the current post-bankable feasibility study, pre-final investment decision work.”
On the calendar
AVL’s drilling program is designed to increase the mineral resource categories in part of the Australian Vanadium Project’s southern ore blocks 50, 60 and 70.
Once it’s cut the ribbon on drilling and characterisation work, the explorer will incorporate its findings into an updated mineral resource estimate, mine studies and financial modelling.
Ultimately, the work will bring it one step closer to offering investors exposure to all aspects of the vanadium value chain — from resource through to steel and energy storage opportunities.
Already, the Australian Vanadium Project is one of the most advanced vanadium projects being developed globally, with a 239-million-tonne, 0.73% vanadium pentoxide resource.
That estimate also contains a high-grade zone of 95.6 million tonnes, grading at 1.07% vanadium pentoxide, and an ore reserve of 30.9 million tonnes at 1.09%.
Breaking it down, the project hosts a proved reserve — clocking in at 5 million tonnes at 1.11% and a probable reserve of 20.4 million tonnes at 1.07%.