An exploration and mining company, King River Resources Ltd (ASX: KRR) is focused on the development of its 100% owned global scale and class Vanadium project, largest vanadium-in-magnetite deposit in Australia.
In the recent past, the company has made significant progress in the development of its 100% owned Speewah Specialty Metals (SSM) Project and 100% owned Mt Remarkable Gold project, both of which are located in the East Kimberley of Western Australia.
During the 2019 March quarter, the company reported the Speewah Specialty Metals (SSM) Project studies. At SSM project, the company has been conducting sulphuric acid (H2SO4) flooded vat leach and agitated leach tests on coarse magnetite gabbro lumps and magnetite-ilmenite concentrate, from the high-grade zone of the Central Vanadium deposit. The leach test work has successfully demonstrated good metal extractions from both lump and concentrates in sulphuric acid, which is very encouraging for the company.
The company has announced that it will shift its focus to precipitation test work to recover the targeted metals from the leach solutions, and now the group will be emphasizing on the precipitation of iron (Fe) as ferrous sulphate and the oxidation of the ferrous sulphate for the production of an iron oxide product and recover sulphur dioxide.
Recently, Mining Industry Consultants, CSA Global Pty Ltd (CSA Global) completed an amended resource estimate reporting in accordance with the JORC Code (2012) for SSM Project. At the request of King River Resources, CSA Global amended the manner in which the Mineral Resource estimate was reported and as per the amended Mineral Resource estimate, the Speewah deposits comprise a combined Measured, Inferred and Indicated Mineral Resource of 4,712 million tonnes (mt) at 0.3% Vanadium oxide (V2O5), 14.7% Iron (Fe) and 3.3% Titanium dioxide (TiO2).
This combined resource comprises Measured Resources of 322 mt at 0.32% V2O5, 3.4% TiO2 and 14.9% Fe, Indicated Resources of 1,054 mt at 0.33% V2O5, 3.3% TiO2 and 14.9% Fe, and Inferred Resources of 3,335 million tonnes at 0.29% V2O5, 3.3% TiO2 and 14.6% Fe.
The company is in the process of completing a Prefeasibility Study into the preliminary economics of the SSM project. The test work and studies completed during the March quarter have identified a clear path forward for the project based on Mine-Beneficiation-Sulphuric Acid Agitated Tank Leach-Precipitation of V2O5, TiO2 and FE2O3 products.
At Mt Remarkable Gold project, the company has completed the drilling and has received the final assays.
Notable results from the final batch of assays include:
- 4m @ 19.88g/t Au including 1m @ 69.30g/t Au from 21m in KMRC194
- 2m @ 10.47g/t Au from 33m in KMRC196
- 3m @ 4.29g/t Au including 1m @ 6.7g/t Au from 27m in KMRC195
At the end of the March quarter, the company had cash and cash equivalents of A$3,682k. For 2019 March quarter, the company spent A$463k of cash in operating activities with A$323k spent on exploration and evaluation.
At the close of market on 26 April 2019, the stock of the company was trading at a price of A$0.023, up by 4.55% with a market capitalisation of ~A$27.25 million.
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