Neometals inks vanadium deal to establish processing hub

Neometals has forged links with a subsidiary of Australian Vanadium Limited to potentially establish a shared vanadium- titanium processing hub in West Australia’s Mid West region. The non-binding term sheet also allows the affiliate company the option to purchase and treat concentrate derived from Neometals’ massive Barrambie titanium-vanadium project near Sandstone in WA.

The duo believe the synergies derived from the collaboration will allow their respective development of two of the country’s most well understood and advanced vanadium titanium deposits to move forward at speed. In addition, the partners say the union could deliver a wealth of vanadium, titanium and iron processing opportunities that otherwise not have been achieved.

Neometals and Australian Vanadium Limited, through its wholly-owned subsidiary Australian Titanium, are looking to establish a regional concentrate processing hub in WA’s Mid West and believe the facility could go a long way towards unlocking the area’s critical and battery mineral projects. The pair say they welcome discussions with other companies who find the “hub approach” appealing.

According to management, processing both its own concentrates along with others could deliver massive benefits to the region and position Australia as the flagbearer of vanadium products for the green steel and energy storage sectors. The Mid West region in WA is home to what the pair have dubbed the “Vanadium Triangle”, a potentially lucrative area laced with a suite of economically viable vanadium-titanium-magnetite, or “VTM” deposits.

Speaking on the agreement and the synergies it could produce Neometals Managing Director Chris Reed said: “We welcome the opportunity with AVL to investigate co-location, infrastructure sharing and the potential to supply high-grade vanadium co- product from our proposed mineral separation plant. Barrambie is one of the highest-grade titanium deposits in the world and can produce both a chloride-grade ilmenite product and vanadium-iron co- product from low-temperature roasting and magnetic separation of Barrambie gravity concentrates.”

Neometals’ Barrambie deposit is positioned roughly 80 kilometres north of Sandstone in Western Australia’s Murchison region and about 460km east of the port of Geraldton. The deposit’s draw is linked to its strategic location, which fosters proficient export capabilities tied to its well-developed infrastructure.

Barrambie is a titanium-vanadium-rich magnetite body housed inside a suite of intrusive mafic rocks. Work at the deposit has so far delivered a substantial, near-surface 280 million-tonne resource going 9.18 per cent titanium oxide and 0.44 per cent vanadium pentoxide.  The company says the sheer scale of the resource positions it amongst the world’s biggest undeveloped titanium resources.

Last year Neometals progressed Barrambie to a decision to mine and received a wave of support from the Western Australian government, who waved through a 1.2 million tonne per year mining facility at the site. The West-Perth-based entity is now moving ahead with the construction of an on-site processing plant.

Australian Vanadium’s nearby project is regarded by the company as one of the world’s most advanced in-development vanadium projects and boasts a 239 million tonne resource at 0.73 per cent vanadium pentoxide. The asset boasts a higher-grade 95.6 million tonne zone grading 1.07 per cent vanadium pentoxide.

The non-binding agreement has a term of nine months and can be extended in 6-month increments through mutual agreement by Neometals and Australian Vanadium Limited.

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