Vanadium is a critical mineral in new energy applications such as vanadium flow batteries for large scale energy storage and cathodes for lithium-ion batteries. As these markets continue to grow, AusVan is developing the Allaru Vanadium project to support supply for these new battery markets.
Vanadium is a unique metal with a bright future. The majority of global production comes as a by-product product from the manufacturing of steel. Due to the nature of this supply source, additional supply is difficult to bring online when prices increase.
Largo (TSX:LGO) and Bushveld (AIM:BMN) are the only primary vanadium producers outside of China. As vanadium has been designated ‘critical mineral’, additional primary supply sources are required.
Vanadium flow batteries are a growing market with significant potential. Grid scale storage for renewable generation is a growing market. Vanadium prices peaked in 2018 when China increased their standards for the strength of rebar, which requires more vanadium. Prices have since fallen to lower levels, however the metal has a strong medium-long term future supported by both the battery and steel markets.
AusVan has launched with the acquisition of the Allaru Vanadium Project in Queensland Australia. Located in the world class North West Minerals Province, the Allaru Project is surrounded by high quality infrastructure in a world renounced mining district.
Bordered by Rio Tinto to the west, the Allaru project has a JORC Inferred Resource of 618Mt at 0.45% V2O5 and Exploration Target of 1,100Mt. The Vanadium Resource includes grades of up to 0.78% V2O5.
The resource remains open in all directions, progressively shallower to the east where it daylights. Clear opportunity to increase the tonnage with near surface high grade, enriched oxide zones to the east of current resource as well as increasing global tonnage. AusVan is planning to drill out the deposit in preparation for completing PEA by the end of 2020. As demand for vanadium continues to grow, AusVan is expediting its program to meet demand.
AusVan is pleased to announce the appointment of Mr Mike Collins as President.
Michael is a geologist with over 30 years experience in mineral exploration, deposit modelling and project development. He has exploration and production experience in Greenstone Gold, Newmont Goldcorp, Redlake Mine during the startup and first 2 years of operation.
Michael was the past VP North America with Mining Plus Canada Ltd. (5 years), a specialized underground and surface mining engineering consulting company. Was instrumental in reducing the projected capex on the Los Reyes project in Mexico from $120m to $12m and 150% IRR and raised $8.7m.