A new round of exploration drilling by Neometals has discovered significant high-grade vanadium mineralisation at the Virginia Hills prospect, directly west of and parallel to Neometals’ flagship Barrambie Titanium project in Western Australia.
Near surface intercepts include 6m grading 1.10%vanadium pentoxide from 53m and 5m @ 0.96% V2O5 from 23m. Drilling has now confirmed an 8km strike continuity for the vanadium-titanium mineralisation at the prospect.
The ore system drilled is interpreted as the western side of the folded Barrambie sequence that hosts the major mineralisation.
Neometals provided an update this week on its activities at the project, outlining the new exploratory results at Virginia Hills and intersections returned from close-spaced grade control drilling at the main Barrambie deposit.
The company is looking to establish the continuity, dimensions and tenor of the high-grade titanium-vanadium Barrambie ore body with its close spaced grade control drill program.
The grade control work is targeting a wide corridor of the highest-grade titanium mineralisation that exhibits greater than 30% titanium dioxide.
The present mineral resource estimate for Barrambie is 47.2 million tonnes grading 22.2% titanium dioxideand 0.63% vanadium pentoxide making it one of the highest-grade hard rock titanium deposits in the world.
The Company has approval to mine a 50,000-tonne bulk parcel to be direct shipped without milling and will forward this to a titanium processing operator in China to help prepare costings and determine the metallurgical characteristics of the ore.
The Company is working to develop the most optimal route for processing and selling titanium-vanadium concentrate from Barrambie.
Globally declining grades and quality, combined with a sustained increase in price for these important steel-making exotic metals are assisting Neometals to build a business case to develop the deposit.
The company’s PFS predicts a minimum 20 year mine life at Barrambie, with a payback of capital costs taking approximately 4 years. Offtake decisions on the project are anticipated in the September quarter this year.
In the medium term, Neometals will continue to evaluate the exploration potential of the Virginia Hills prospect and kick on with its detailed technical studies for the Barrambie project.
