ASX-listed Neometals is one step closer to negotiating a binding offtake agreement with potential Chinese partner Jiuxing Titanium Materials after the success of an industrial-scale smelting trial in Western Australia.
The emerging battery metals producer received encouraging results from the production of titanium dioxide chloride slag at a grade of more than 90 per cent using mixed gravity concentrate from its Barrambie titanium and vanadium project near Sandstone.
Jiuxing conducted the trial at its facility in China using around 40 tonnes of a mixed gravity bulk sample from Barrambie blended with other commercially available titanium sources and ilmenites to produce a suitable feedstock. Around 17 tonnes of mixed gravity concentrate and 23 tonnes of commercially available ilmenites were consumed in the smelting trials to produce two products – titanium slag and high vanadium pig iron.
Neometals says the successful result represents the final stage of technical due diligence required for Jiuxing and the company to begin negotiations on a binding formal offtake agreement after the two entities signed a binding memorandum of understanding in April last year.
Neometals Managing Director, Chris Reed said: “The ability to produce chloride-grade titanium slag from simple gravity concentrate from Barrambie is the key technical milestone for the next stage of project development.”
The memorandum of understanding outlines that, subject to due diligence, Neometals will enter into a formal offtake agreement with Jiuxing to supply either 800,000 tonnes of mixed concentrate or 500,000 tonnes of ilmenite and 275,000 tonnes of iron-vanadium concentrate per annum. The deal covers the first five years of production and pricing will be based on published market values and subject to an agreed price floor.
The finished titanium slags were sampled and tested by Jiuxing’s laboratory and confirmed using test assays performed on representative samples in China and Australia. Jiaxing also confirmed the success of the trial and the completion of the final technical step required before the two companies negotiate final price and offtake arrangements.
Neometals holds a massive, near-surface 280 million tonne resource at Barrambie grading 9.18 per cent titanium oxide and 0.44 per cent vanadium pentoxide, positioning the specialty metal deposit as one of the world’s largest undeveloped titanium resources. The deposit is a titanium-vanadium-rich magnetite body hosted within a suite of intrusive mafic rocks.
The company is now weighing up the best options for the delivery of its resource at Barrambie with possibilities including direct shipping ore, a beneficiation option to create mixed gravity concentrate or a low temperature reduction roast option to separate the concentrate into ilmenite and iron-vanadium streams.
All three options will be investigated in the upcoming pre-feasibility study for Barrambie that is on track to be completed before the end of the year. Following the success of the trial in partnership with Jiuxing, Neo Metals appears to be well placed to establish a buyer for its Barrambie resource. The market will be keen to know what form that final product will take once the company has completed its economic studies.
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