Technology Metals Developing World’s Largest Primary Vanadium Project - Gabanintha

Subiaco-based mineral explorer & developer, Technology Metals Australia Limited (ASX: TMT) is focused on developing the world-class Gabanintha Vanadium Project (GVP) in Western Australia, holding potential to be the world’s largest single primary vanadium project.

Considering the growing demand from steel industry and emerging energy storage (battery) sector, the Company intends to rapidly progress the project towards production, anticipated in 2022.

Gabanintha Project - A Low-Cost, High-Grade, Long-Life Vanadium Operation

The project, located approximately 40 km south of Meekathara, has infrastructure advantage, backed by access to sealed national highway and proximity to Geraldton and Fremantle ports, thereby minimising the project capital requirement. GVP is expected to utilise water supply from a borefield near the mining area.

In August 2019, TMT delivered an excellent definitive feasibility study (DFS) into the project with results highlighting GVP as a low-cost, high-grade, long-life operation.

DFS Highlights -

• Long life of 16+ years, with further expansion possibilities
• Average V₂O₅ production rate of 27.9 Mn lbs, aiding the project to become the world’s largest primary vanadium producer
• Low-cash cost of US$4.04/lb V₂O₅
• Huge reserves & resources of almost ~1.44 million tonnes V₂O₅ contained in R&R

Once developed, the project would include an open pit mining operation with integrated processing facilities. The ore feed would be sent to the comminution circuit followed by magnetic separation, salt roasting, water leaching and further processing to produce high purity high-value vanadium products, ideal for steel, alloy preparation and battery applications.

Lead Agency Support for Gabanintha Vanadium Project

The beginning of 2020 brought good news for Technology Metals, as GVP was assessed as a lead agency project under the Lead Agency Framework of the Department of Mines, Industry Regulation and Safety.

With vanadium being a battery mineral recognised by the federal and state governments as critical metals, the project fits well with the Western Australian government’s “Future Battery Industry Strategy.”

Moreover, it is a major milestone for the Company, as the Lead Agency recognition will assist TMT in maintaining momentum for the progression of the project approvals pathway.

The project like any other project would require undergoing the approval process, but since it has been selected as a lead agency project, a principal policy officer has been assigned to assist TMT with advice and coordination related to approvals across different departments, ensuring no delays in the plan.

The Company looks forward to working closely with the Lead Agency team, NAIF and other key government and non-government agencies and stakeholders, ensuring smooth progress towards project development.

TMT Secures $2 Million to Progress GVP

The Company had cash at hand of $ 0.52 million at the end of December 2019. In early February 2020, TMT completed a placement of ~18.94 million fully paid ordinary shares at a price of $ 0.11 a share with international and domestic strategic and high net worth investors, raising approximately $2 million (before costs).

Proceeds are planned to be directed towards progressing the development of Gabanintha Vanadium Project and for general working capital.

Market Opportunity for Gabanintha Vanadium Project

Focus on clean and reliable energy sources has increased with higher investment being fuelled into the sector for cleaner solutions.

The burgeoning acceptance of renewable energy, globally, presents an avenue for Technology Materials to supply high-grade vanadium products, resulting in technological advancements, thereby deescalating prices for the development of efficient and reliable vanadium redox flow batteries, the solution to energy storage puzzle.

Currently, TMT is progressing environmental approvals with spring surveys undertaken to provide complete seasonal coverage of the project area. Moreover, Technology Metals Australia is progressing discussions with various interested parties to finalise binding offtake and financing agreements.

On 28 Feb 2020, TMT stock closed the day’s trade at $ 0.096, with a market cap of $ 11.76 million.

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