Venus Metals Corporation Limited (ASX: VMC) has confirmed the World-Scale JORC 2012 Vanadium Oxide Resources.The total resource estimate is now 134.7mt at Youanmi Vanadium Project with a grade of 0.34% of Vanadium Pentoxide.
The further classification of resources includes; the measured resources of the project is now at 31.55 million tonnes with a grade of 0.33% of vanadium pentoxide. The indicated resources of the project are at 54.37 million tonnes with a grade of 0.33% of vanadium pentoxide, and inferred resources are at 48.82 million tonnes with a grade of 0.36% of vanadium oxide. All the vanadium oxide has a cut-off of 0.1%.
The estimation of all the resources was calculated by an independent company consultant Widenbar and Associates, which included the inputs from the recently drilled 139 Reverse Circulation (RC) and 49 historical RC and 11 diamond holes.
The project is located 460Km east of the port of Geraldton, W.A, and the location is well supported by the regional infrastructure as the gas energy supply is just 40Km northwest of Youanmi in Windimurra. The project is 90% owned by the company and is an open pit vanadium resource of world-scale in oxide form.
Noticing the surge in demand for vanadium amid the emergence of renewable energy needs, the company plans to extract it from the project site, based on a potentially simple hydrometallurgical process, which will allow the company to take advantage of the unique weathered vanadium oxide ore in a cost-effective manner as compared to traditional hard rock deposits. The presence of soft oxide material enables it to get extracted by simple mining techniques such as an open cut method.
To further develop the hydro-metallurgical process, the company devised plans in stages. The stages include intensive hydrometallurgical studies and pilot scale development. The company further plans to drill additional 25km in the mineralized strike to define the mining reserves and undertake various such studies such as marketing, scoping, prefeasibility, etc. to advance the project.
To execute the above strategies, Venus Metals contracted a Metallurgical Process Development team of experts.
Venus metals recently announced its H1FY19 financial picture in which the company reported revenue of $371,500 for H1FY19, up as compared to $16,669 in H1FY18. However, the company reported a net loss for the half year ended 31st December 2018 of $1,160,044 as compared to $766,807 loss in H1FY18.
The higher loss was attributable to the increase in exploration activities., which marked an expense of $721,208 in H1FY19 as compared to $307,387 in H1FY18. Albeit, the administration expenses also surged for H1FY19 to $788,930 as compared to $447,885 in H1FY18.
Venus’s total asset declined to $1,273,454 in H1FY19 as compared to $2,416,024 in H1FY18 with a total basic loss per share of $0.013 in H1FY19 as compared to $0.010 in H1FY18.
The company marked a net cash outflow of $958,243 in operational activities in H1FY19, as compared to $825,956 in H1FY18. After adjusting with other cash flows (inflows and outflows) the Cash and cash equivalent for H1FY19 remained at $341,953 as compared to $803,830 in H1FY18.
However, the loss of asset and decline of cash flows cannot be considered as a parameter to judge the company. Investors should keep a track on the exploration results, production guidance and outcome of exploration along with the annual report to reckon the completed picture and strength of the company. The shares of the company closed the day’s trading at A$0.135 (as on 18th March 2019), down by 3.571% as compared to its previous close.
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