Australian Vanadium Limited (ASX: AVL) is engaged in the exploration of vanadium/titanium and other economic resources, the development of vanadium electrolyte production and the sale of VRFB systems. The company, at present, has three projects: The Australian Vanadium Project – Vanadium; Blesberg, South Africa – Feldspar; Nowthanna Hill – Uranium/Vanadium; Coates – Vanadium.
The company recently confirmed about the completion of an updated Mineral Resource Estimate to JORC Code 2012 estimation standards for the Nowthanna Hill uranium deposit near Meekatharra. The development will allow AVL to consider the future value of the received Nowthanna mining licence.
Database: SRK Consulting conducted and completed the Nowthanna Hill resource estimate using a database, which comprised of all the historical data on company’s tenements and the adjacent and surrounding data from the latest Toro Energy 2011 resource estimate. Toro confirmed a Mineral Resource at Nowthanna of 13.5 Mt at 399 ppm U3O8 at a 200 ppm cut-off that is equal to 11.9 Mlbs of uranium. These resource estimates and mineral resource statement is limited to the two AVL tenements M51/771 & E51/1899. It does not include the Toro Nowthanna and Nowthanna South deposits, while all past data and Toro data were taken into account for the estimation process.
Resource Estimations: Vanadium estimates were modelled by deploying OK (Ordinary Kriging) at 50 m (X-axis) x 100 m (Y-axis) and 0.5 m (Z-axis) based on statistical variogram data. Using cut-off for reporting purpose of 250 ppm V2O5 resulted in an Inferred Mineral Resource of 3.60mn tonnes at 337 ppm V2O5 on the AVL tenements.
Using a 200 ppm U3O8 cut-off, the project has an Inferred Mineral Resource of 4.73 million tonnes at 404 ppm U3O8 (4.2Mlbs) on the AVL tenements and is not additive to the vanadium mineral resource estimate.
The company also updated that Nowthanna Hill project is available for a sale or Joint Venture. The project is located on granted mining lease M51/771 with executed native title agreement.
Mining and Metallurgical Assumptions: For the estimation process, the company has taken only one assumption that is the size of the SMU (10×10×0.5m) for data modelling. Mining or any optimisation study has not been done at the present stage, and no assumption was taken into account for this estimation. Additionally, this resource estimation has not considered any metallurgical or recovery assumptions.
The company recently updated that it has entered into a a Joint Venture with Ultra Power Systems (UPS) on Coates Vanadium Project which is located near Perth. This joint venture is expected to create a value for the company by monetising a testing processing technology and secondary asset concentrated on further improving the uptake of vanadium redox flow batteries in Australia. The agreement will allow Australian Vanadium Limited to receive $500,000 or equivalent shares in Ultra Power Systems.
The company, in the month of January 2019, had discussed vanadium in energy storage with Proactive Investors.
At the current market price of $0.018, the market capitalisation for the stock comes in at $35.53 million as on 31st May 2019. The stock is trading at its 52-week low of $0.018. The stock has generated a negative return of 53.85% in last one year, whereas the stock has dropped by ~10% in last five trading sessions.
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