Horizon Minerals say their North West Queensland vanadium project is advancing closer to reality.
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Horizon said it had completed a Pre-Feasibility Study and were progressing a Bankable Feasibility Study for the 1.88 billion tonne Richmond vanadium project located 35km north-west of Richmond.
Horizon's has a 25% interest with JV partner Richmond Vanadium Technology (75%) and they plan to combine interests into a dedicated IPO vehicle and seek an ASX listing
Horizon said the Mineral Resource for the advanced Lilyvale deposit within the project area stands at 560Mt grading 0.48% vanadium pentoxide while the maiden open pit ore reserve at Lilyvale is estimated at 459.2Mt at 0.49% vanadium pentoxide.
The company told the ASX its updated Pre-Feasibility Study based on an initial 20-year life demonstrated a financially strong project.
The plan is for shallow low impact open pit mining producing 80.4Mt of oxide ore, refining overall recovery at 86.1% produces 251,500 tonnes of 98% vanadium pentoxide commercial grade flake with average annual production of 12,700t vanadium pentoxide.
Horizon said the mine would require "modest up-front capital costs" of $243m and at current spot price of $16.44 a pound V2O5, the project generates net present value 10% of $1.09 billion with an internal rate of return of 62% and a rapid payback of 1.9 years.
They told the AXS the Bankable Feasibility Study was progressing including offtake and alliance discussions with electrolyte and battery manufacturers, final flowsheet design, onshore refining assessment and project approvals for advancement to major project status.
Horizon Managing Director Jon Price said that with sustained increases in vanadium prices, declining supply, increasing demand in grid scale energy storage markets and strong government focus on critical minerals, it couldn't be a better time to be advancing this world class project.
ALSO IN THE NEWS:
Vanadium is an emerging green energy storage mineral with the globally significant project included in the Federal Government's Critical Minerals Prospectus 2020.
Richmond Vanadium Project is one of several major vanadium projects planned for the Julia Creek - Richmond corridor with Multicom's Saint Elmo the most advanced, with a mine getting the go-ahead in September.
There is also QEM's vanadium and oil shale project, and a less-developed project from Liontown which hopes to develop Toolebuc Vanadium.
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