Niplats Australia has received final vanadium assay results from the Central, Buckman and Red Hill Prospects at Speewah which provide further support that the Speewah Dome will host Australia’s largest vanadium deposit.
The Company reported on 5 February 2009 its maiden vanadium resource for the Central deposit consisting of a total Indicated and Inferred Mineral Resource for the combined low and high grade zones of 851 million tonnes at 0.32% V2O5 (at 0.23% V2O5 lower cut-off grade), with 334 million tonnes at 0.32% V2O5 in the Indicated category.
The combined total Indicated and Inferred Mineral Resource of 279 million tonnes at 0.39% V2O5 (at 0.365% V2O5 lower cut-off grade), with the Indicated portion is 107 million tonnes at 0.40% V2O5.
Reconnaissance drilling at the Red Hill and Buckman Prospects has confirmed they are very large exploration targets. Drilling has indicated mineralisation over a 2.5km by 10.5km area at Buckman and a 2.5km by 6.5km area at the Red Hill Prospect.
The Buckman exploration target is 1 to 2 Billion tonnes at 0.3-0.35% V2O5, and the Red Hill exploration target is 400 to 600 million tonnes at 0.3-0.35% V2O5. This represents an increase in the size of the exploration targets of greater than 300% from those announced to the ASX on 5 February 2009. NiPlats is encouraged by the potential large size and quality of the vanadium deposits at Speewah as it is important in attracting a strategic partner and end user to assist in any future development.
In addition to the Buckman and Red Hill exploration targets, the Speewah Dome has three more areas that have yet to be drill tested, referred to as Junction, Sunset Flats and Magnetite Valley.
Drill samples have been submitted to SKM for metallurgical testwork, to determine mass recoveries and the V2O5 concentration (the “tenor”) within the magnetite. Preliminary results have returned acceptable mass recoveries and very high tenor consistent with previous Davis Tube testwork. Further information will be released as this work continues.
The company advises that work over the next 12 months will focus on scoping and pre-feasibility studies on the high grade Indicated Mineral Resource of 107 million tonnes at 0.40% V2O5, as preliminary investigations suggests a potential mine life of 20 to 30 years based on producing approximately 6,000 tonnes of ferro-vanadium end product per year.
The assay results from Red Hill and Buckman confirm the significance of the size of the vanadium deposit at Speewah Dome and that it represents a strategic deposit that may support a 100+ year mine life. The third party metallurgical testwork completed by SKM will assist in confirming the quality of the deposit.
The favourable setting of the resource (outcropping and near surface, gentle slope) and the characteristic of mostly fresh rock from surface, combined with the very high vanadium tenor, significantly enhance the opportunity for a commercially viable vanadium project.
Source: Proactive Investors Australia
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