Date: Sep 28, 2018

Australian Vanadium (ASX:AVL) has released an update to the ongoing prefeasibility study (PFS) at its Gabanintha vanadium deposit in Western Australia, reporting an initial production scenario that demonstrates “robust” project fundamentals.

The production scenario highlights a planned vanadium pentoxide refinery at the project site that would feature a production rate of 10,100 tonnes per year over an initial 17-year mine life.

The study suggests there would be potential for extending operations along strike for 8 further kilometers, which would possibly extend the mine’s life.

The project is set to feature an open-pit mine with a crushing, milling and beneficiation plant, along with a refining plant for final conversion and sale of vanadium pentoxide. Open pit mining and beneficiation operation would produce 900,000 tonnes per year at a planned grade of 1.39 percent vanadium pentoxide of magnetic concentrate.

Operating expenses are estimated at US$4.13 per pound of vanadium pentoxide equivalent, while capital costs came in at US$360 million. The current scenario is based on 43 percent measured resources, 20 percent indicated resources and 37 percent inferred resources.

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