With low cost dig and deliver development plans, Pursuit Minerals is now progressing rapid development plans for its high grade Airijoki and Koitelainen vanadium projects in Sweden and Finland. In magnetite concentrate to vanadium smelters overseas, dig and deliver refers to low-cost simple processing and export of high-grade vanadium.
Because of the high-grade vanadium magnetite concentrates produced at Airijoki and Koitelainen, Pursuit Minerals Limited (ASX: PUR) is able to consider this rapid project development concept. In magnetite concentrate at over 2 percent vanadium pentoxide (V2O5) these grades compete with the very best projects around the world.
To convert this into V2O5 flake without funding the expensive processing equipment required, this process means Pursuit can start making money. Pursuit Minerals’, Jeremy Read the Managing Director said, as soon as JORC-compliant mineral resources are defined in December 2018, scoping Studies on both projects are due to start, and January or February 2019.
To determine whether or not a resource can be mined economically, miners usually undertake four different types of studies. For reporting exploration results, mineral resources and ore reserves, JORC refers to the mining industry’s official code, managed by the Australasian Joint Ore Reserves Committee.
Mr. Read said ‘via Scoping Studies they want to examine the economics of dig and deliver type projects where there is vanadium, right in the upper level of projects globally both the Koitelainen and Airijoki Projects produce vanadium magnetite concentrates.
‘Via a simple magnetite concentration process enriched magnetite would be mined, concentrated and then sold to markets in China or Europe as a premium quality vanadium magnetite concentrate.’
To determine the economics of the Airijoki and Koitelainen projects Pursuit’s wants to complete both Scoping Studies prior to March or April 2019 and also to establish a potential pathway to production.
As it involves building a processing plant that could produce V2O5 flake, this could help Pursuit invest in Step 2, if successful, which attracts a higher price from buyers.
A key player in the budding battery storage market, It’s also key component in Redox Flow Batteries amongst other things. To take advantage it will be the miners that can get production efficiently and quickly for high quality projects.
Pursuit Minerals Limited traded at a market price of $0.032 as at November 21, 2018. The stock has seen a performance change of -31.91% over the past one month.
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