Vanadium Demand Expected to Hit $56 billion Driving New North American Mining Plays
The Vanadium sector continues to see rising demand for new projects, indicating a steady demand for the metal despite rise and fall in price over the last 18 months. According to a recently published report from Acumen Research and Consulting, the overall vanadium market size is still expected to be worth approximately US$ 56 billion by 2026. The long view of the sector has driven developments continue to flow from multiple vanadium companies including Delrey Metals Corp (OTC:DLRYF) (CSE:DLRY), Largo Resources (OTC:LGORF) (TSX:LGO), First Vanadium Corp. (TSX.V:FVAN) (OTC:FVANF), Bushveld Minerals Limited (OTC:BSHVF), and Alba Minerals Ltd. (TSX.V:AA)(OTC:AXVEF).
While there have been impressive upgrades happening on operations in places like Brazil, and South Africa, many of the newest vanadium projects seem to be arising in North America—such as the jumbo-sized Four Corners project in Newfoundland dubbed to be “one of the largest and most accessible vanadium projects in North America.”
As it develops Four Corners, vanadium miners Delrey Metals Corp (OTC:DLRYF) (CSE:DLRY) have also been working on a series of important vanadium projects on the other side of Canada, on the British Columbian coast. Most recently, Delrey announced results from its Phase II prospecting program on its wholly-owned Star, Porcher and Blackie properties located along tide-water near the city of Prince Rupert—returning assays as high as 0.513 of Vanadium Pentoxide.
Four Corners, Star, Porcher, and Blackie are just a few of the multiple promising vanadium projects coming from North America. Other prominent plays in development are the Carlin Vanadium Deposit from First Vanadium Corp. in Nevada; and the Journey Exploration uranium-vanadium properties in Colorado and Utah from Alba Minerals Ltd.
Much of the international attention for vanadium projects of late has been given to Largo Resources Maracás Menchen Mine, in Bahia State, Brazil, and to Bushveld Minerals Limited which recently made a splash by acquiring a series of vanadium assets in South Africa.
Given the anticipated rising value of the vanadium market, it’s understandable that new projects are underway. With its friendly mining jurisdictions and prolific amounts of potential vanadium deposits, Canada and the United States could become the next big vanadium markets.
Multi-Faceted Vanadium Approach
Recent results from Delrey Metals Corp (DLRYF)(DLRY) on the company’s BC properties have shown an example of the potential of Canadian vanadium. On its Phase II work program, Delrey has been very encouraged by the consistency of Vanadium Pentoxide, titanium and iron enrichment identified by the work on all three properties.
With the encouragement, Delrey is working to establish up to 20 drill sites on the Blackie, Porcher, and Star properties. The work follows up on the strongest magnetic anomalies that were mapped during the Phase I airborne magnetic surveys reported on back on April 15, 2019.
“The Delrey team is very pleased with our Phase II results as the assays not only show excellent continuity with the previous Phase I geophysical anomalies, but include some impressive vanadium, iron and titanium grades,” said Morgan Good, Delrey President, and CEO stated. “A systematic approach to exploration at Blackie, Porcher and Star has allowed us to put the second piece of the puzzle into place on our BC assets. We’re optimistic we will be in a position to initiate our Phase III work program consisting of diamond drilling this summer at our Blackie, Porcher and Star properties, further enhancing the value of Delrey for its shareholders.”
On the other side of the country, Delrey is finalizing negotiations on the Definitive Agreements for the option to earn 80% of the very large Four Corners Project in Newfoundland and Labrador. With the addition of the project, Delrey has a clear cut flagship project, based on the enormous 5,157 hectares of property space, with potentially billions of tonnes targeted.
One of the Largest, Most Accessible Vanadium Projects in North America
Back in 2012, global firm SRK Consulting (US) Inc. performed work on what is the Four Corners project. The firm’s initial metallurgical results yielded an impressive >90% Vanadium Pentoxide and >80% Titanium dioxide recovery. What’s perhaps more impressive is how historic work estimated the property to contain up to 2.37 billion tonnes of vanadium-bearing titaniferous magnetite—which must be noted is a number still yet to be brought into modern NI43-101 compliance.
The blue-sky potential of this magnitude is rare for companies of Delrey’s size (market cap of less than US$5 million).
With a 2012 report’s speculative tonnage of potentially billions of tonnes of mineralized rock, Delrey’s website can state that the project “conservatively represents a potential target of over 2 billion tonnes.
It’s now up to Delrey Metals Corp (OTC:DLRYF) (CSE:DLRY) to continue working on the property with modern methods, to bring the property into compliance—and ultimately allow them to add billions to the company’s official resource tally.
Preliminary surface sampling across the mineralized zone assayed >40% Iron, 5% Titanium, and 0.30% Vanadium Pentoxide with individual assays returning as high as 56.92% Iron, 15.13% Titanium, and 0.39% Vanadium Pentoxide.
“This latest acquisition provides further exposure for Delrey and its shareholders within the battery metals sector, which is driving the global change in energy storage,” said Delrey’s President and CEO, Morgan Good in the latest press release. “We’re excited to be in a strong position with the Four Corners Project acquisition in a favorable jurisdiction like Newfoundland and Labrador, as the potential size and scale of this asset are remarkable.”
Additional Vanadium Developments
Outside of Canada, there have been multiple other North American vanadium developments, in the United States. Alba Minerals Ltd. (TSX-V:AA) (OTCPK:AXVEF) recently entered into an agreement to acquire Journey Exploration and its 100% interest in five prospective vanadium and uranium properties in Colorado and Utah. Alba believes the projects are in and adjacent to the Uravan Mineral Belt, which has had significant work done since 1881.
In the prolific mining jurisdiction of Nevada, First Vanadium Corp. (TSX-V:FVAN) (OTCQX:FVANF) is working on its Carlin Vanadium Deposit. The company recently announced it had acquired historical data on the property which extends the strike length of the deposit a further 300 meters to the south on the property. Two drill holes and two trenches by Union Carbide in 1968 which reported strong vanadium grades. The extension amounted to a 15% gain in strike length, which according to the company remains open to the south on the property.
Outside of North America, Largo Resources (OTCQX:LGORF) (TSX:LGO) is already producing at record levels. Production at its Maracás Menchen Mine in Brazil has been consistently rising, as Largo continues to focus its efforts completely on the production of vanadium flake, high-purity vanadium flake, and high-purity vanadium powder. In 2018, the mine’s CAD$521.4 million in revenue was a record breaker, putting forth an impressive 211% year over year increase.
Perhaps the next big vanadium player could be Bushveld Minerals Limited (OTC:BSHVF) which recently doubled down to significantly increase its vanadium production. Through a series of acquisitions in South Africa, the low-cost integrated miner added to its portfolio the Vametco vanadium mine and processing plant which is currently in phase 2. These additions compliment Bushveld’s own energy storage subsidiary as part of a strategy to establish itself as a fully integrated vanadium business.
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