AVL updates mineral resource estimate

Mineral exploration company Australian Vanadium has announced an updated mineral resource estimate for its namesake project in Meekatharra.

The Cliff Lawrenson-chaired company told the market there was a 39 per cent increase for high-grade domain in both measured and indicated categories.

As a result, the global vanadium mineral resource estimate for the project is now 395.4 million tonnes at 0.77 per cent vanadium pentoxide – with 61 per cent of the high-grade domain classed as either measured or indicated.

The upgraded mineral resource estimated follows on from news on February 1 that AVL had finalised its merger with Technology Metals Australia.

In December last year, the junior miner raised its offer to secure its takeover target, from 12 to 14 AVL shares for every TMT share held.

AVL said under this arrangement, TMT shareholders would control approximately 42 per cent of the merged company – which it declared was its best and final proposal.

As a result, the West Perth-based company has been able to combine sites from both entities into its namesake project, which possesses a single contiguous vanadium orebody, containing 18km of unified strike length.

“This mineral resource estimate update strengthens our conviction that we will be able to define a ‘stronger for longer’ project capable of producing high grades of vanadium and iron in the magnetic concentrate with positive economic implications,” AVL chief executive officer Graham Arvidson said.

“Increased accuracy of the mineral resource estimate from additional drilling by AVL during 2022, coupled with consolidation of the mineral resource estimate over the whole deposit will be pivotal in moving the optimised feasibility study forward, targeting improved early mine-life cash flow.

“AVL continues to make great progress on project development activities and approvals towards mining and vanadium oxide production while also continuing to hit key milestones in the production of electrolyte suitable for vanadium flow batteries at our electrolyte facility.

“The advanced stage of our project positions us well as use of vanadium in batteries continues to grow exponentially.”

AVL, which has multiple interests in Western Australia, also told the market earlier this year that it was hopeful that construction of $450 million processing plant in Geraldton would be able to start next year – after previously estimating the facility would have been operational in 2023.

As of 10am WST, AVL was trading at 1.4 cents per share, up 8 per cent.