Critical Minerals Group (ASX:CMG) has announced its JORC resource for vanadium, aluminium and molybdenum at its flagsip has increased 96%.
The new resource sits at 713Mt of ore with 68% of mineralisation in the ‘indicated’ category at CMG’s Lindfield Project.
In terms of grades, the company is running with projections of 0.32% vanadium; 3.4% aluminium oxide and 130g/t molybdenum.
The company reported on Friday that some 72% of the resource is located within 20m of the surface, suggesting a cheaper mining operation compared to a project required to go underground.
“This upgrade in the resource has flowed from the drilling performed in Q3 2023, the finalisation of the scoping study on the Lindfield Project and ongoing metallurgical test work,” company chief Scott Winter said.
“With these inclusions, the overall planning, development and economics will be worked on further in the next phase of the feasibility studies.
“The improvements to be added will include lower waste removal volumes, lower strip ratio, increased mineralised material, increased mine life potential and the potential for an additional revenue source through the production of molybdenum.”
Molybdenum, like vanadium, is used as an alloy in stainless steel-making –as well as electrodes. Also like vanadium, it ultimately allows for stronger, lighter steel to be produced.
Prior to today’s resource upgrade, molybdenum had not been part of the company’s formal JORC MRE.
“Not only have we been able to increase the mineralised material estimate of vanadium and associated high purity alumina (HPA) but we have now added molybdenum to the resource estimate,” Winter added.
As at 11.30am AEST on Friday, prices for molybdenum are up nearly 10% MoM, though, down -8.47% YoY.
The company says the new resource also includes a higher grade for aluminium at 3.4% based on beneficiation.
Vanadium, meanwhile, is both a steel alloy, but is also increasingly common in an emerging type of batteries.
CMG last traded at 16cps.