Pursuit Minerals (ASX: PUR) is headquartered in Brisbane, Australia and is focused on the emerging energy metal, vanadium. Teck Australia Pty Ltd is PURâs largest shareholder. The company aims to generate and capture the full value of minerals resource projects.
The company announced on 8th May 2019 that the scoping studies that were conducted to assess the technical and economics of producing vanadium had generated positive results. The study was based on the Inferred Mineral Resources for the Airijoki and Koitelainen Projects, in Sweden and Finland, respectively. The group is aiming to understand the potential viability of these projects.
Commenting on the result of the scoping study, Pursuitâs Managing Director, Jeremy Read stated that the positive results based on various commodity prices and processing scenarios had boosted the companyâs confidence. He added that the project has great potential to generate strong returns and conservative capital costs.
According to the study, the projects are of significant value to shareholders. Phase 1 of the study assessed the potential for both Airijoki and Koitelainen to be developed as mining operations producing high-grade vanadium magnetite concentrates for global sales. Phase 2 involved construction of a centralised vanadium magnetite concentrate processing facility for the production of V2O5 flake.
The company aims to focus on swift enhancement of the Airijoki project by completing the metallurgical test work in May. This would provide the company with sufficient inputs to begin discussions with potential offtake partners for the magnetite concentrate.
Later this year in September, the company plans to start an infill drilling program to upgrade the mineral resource to JORC Indicated and Measured status, with the intention to encourage a Definitive Feasibility Study. Another drilling program is set to take place in December for the Koitelainen Project. This will provide more samples for metallurgical test work and aid in exploring possibilities of the Koitelainen Inferred Mineral Resource.
As the developments advances, the company is considering potential strategic partners to deliver technical and financial resources to aid the next stages of development.
The company presented its Quarterly Activities Report for three months till (31 March 2019) on 30th April 2019. The highlights of the report were the Koitelainen Vosa Prospect in Finland, the Airijoki Project in Sweden, and the advanced scoping studies related to these projects.
On the corporate side, the company completed $1.68 million capital raising (before costs) in February. As on 31 March 2019, PUR had cash reserves worth $1.38 million.
Other projects of the company include Karhujupukka Project in north-western Finland, Ala Postojoki Project in northern Finland, Kullberget-Storasen Project and the Simesvallen Project. Some of the explorations projects include Paperbark Project, Bluebush Project, South Australia Lithium Brine Projects and Coober Pedy Project.
From its cash flow statement, it was noted that net cash used in operating activities were $1,772k. Net cash from financing activities amounted to $1,533k. Cash and cash equivalents stood at A$1,382k. The group reported total estimated cash outflows for the next quarter of $596k.
Share Price Information:
On the technical front, the stock traded down by 21.739% and closed at $0.018 as of 8th May 2019 compared to the previous closing price.
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