Australia’s junior mining player, Golden Deeps Limited (ASX: GED) reported highly positive results from the sampling of vanadium stockpile and tailings in the first stage vanadium production at its JV Abenab Vanadium Project in Namibia.
Golden Deeps inked a Joint Venture Agreement with Hong Kong-based metals trading entity, Generous Metals Company Limited (GMC) in early April 2019. The JV involves the production of high-grade vanadium concentrate in Namibia, which will be sent to China for the sale of end vanadium products followed by refining and marketing work.
Under the agreement, Huab Energy Pty Ltd (Huab), subsidiary of Golden Deeps is responsible for providing the existing tailings and stockpile from its Abenab Project in Namibia to the Joint Venture, which will then crush, concentrate, refine and sell the end product.
Recently, the company announced that it has received encouraging results from the sampling of both the stockpile and tailings to be included in the JV. It underscores the submission of a total of 90 samples from the Abenab stockpiles for laboratory analysis, which has returned results of up to 1.79% V2O5. The company also drilled a total of 172 auger holes into the Abenab tailings and received strong results, grading up to 1.24% V2O5 from the 328 samples submitted for an independent analysis.
This comes after the company commenced the drilling at Abenab Vanadium Project with a plan to drill 22 holes for 2,900m in order to extend the current Inferred Mineral Resource at Abenab as well as the in-fill drilling.
The stockpile included in the Joint Venture is reportedly located close to the Abenab open pit and is considered to be either unprocessed ore or mineralised waste from the historic mine, whereas the tailings from the Abenab plant included in the agreement are located in a flat-lying area to the northeast of the open pit. As per the company’s information, the holes were drilled using a handheld power auger through the full depth of tailings, which average 1-2m in thickness with samples taken at 1m intervals.
The company stated that the sampling results are highly encouraging as they confirm the potential to provide very low-cost feed for the JV. Further, the assessment and sampling of the newly identified rock stockpiles, tailings and waste dumps are reportedly underway.
Golden Deeps has also identified additional targets for exploration at the Nosib Mine, near the Abenab mine and other locations along with the 40km Abenab mineralised trend, which is planned to be drilled following the completion of the current drilling program.
The report read that the Abenab mine was operating when vanadium prices were substantially lower than they are now, so only higher grade ore was processed. Therefore, the lower grade ore encountered during the mine development was probably either stockpiled for later treatment or considered waste as per the company’s information.
GED’s stock price stands at $0.028, with a market capitalisation of $5.14 million at market close on 26 April 2019. The 52-week high of the stock stands at $0.075, while the average volume is 189,857 shares over the year.
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