Technology Metals Australia (ASX:TMT) - Managing Director, Ian Prentice
Managing Director, Ian Prentice
Source: The Market Herald
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  • Technology Metals (TMT) has produced a premium grade iron-vanadium (FeV) concentrate from its Yarrabubba Project in Western Australia
  • Yarrabubba, formerly known as the Southern Tenement, is a satellite project to the wider Gabanintha Vanadium Project
  • Importantly, Yarrabubba wasn’t included in the August 2019 definitive feasibility study (DFS) for the Gabanintha Project
  • The FeV concentrate was prepared through magnetic separation testwork and contained up to 66.3 per cent iron and 1.73 per cent vanadium pentoxide (V2O5)
  • While additional work is required to assess the true potential at Yarrabubba, these early indications are highly promising
  • TMT has also signed a letter of intent with SinoSteel for a life-of-mine offtake agreement, as well as project engineering, procurement and construction (EPC)
  • Technology Metals is trading 5.88 per cent higher for 36 cents

Technology Metals (TMT) has produced a premium grade iron-vanadium (FeV) concentrate from its Yarrabubba Project in Western Australia.

Promising addition

Yarrabubba, formerly known as the Southern Tenement, is a satellite project to the wider Gabanintha Vanadium Project.

Importantly, Yarrabubba wasn’t included in the August 2019 definitive feasibility study (DFS) for the Gabanintha Project.

The initial batches of the FeV concentrate were prepared through magnetic separation testwork, and contained up to 66.3 per cent iron and 1.73 per cent vanadium pentoxide (V2O5).

Samples were prepared from two massive fresh composite samples, which delivered iron and vanadium recoveries of 80.6 and 90 per cent respectively.

Those samples provide scope for the Yarrabubba concentrate to meet the premium Platts 65 product specifications — the international standard in iron ore grades.

The high iron grades combined with the very low levels of impurities from this initial testwork demonstrate the high-grade concentrates that could be derived from Yarrabubba FeV ores.

A further five samples consisting of three hangingwall fresh composites, one footwall fresh composite and one transitional composite will also be tested, with assay results expected in the coming weeks.

The data from the seven composites will provide a guide to the optimum blend of material types to deliver a consistent premium FeV product from the Yarrabubba Project.

The project’s high-grade massive magnetite unit hosts an indicated and inferred mineral resource estimate (MRE) of 14.4 million tonnes at 48.1 per cent iron and 1.1 per cent V2O5, within the overall Yarrabubba Project indicated and inferred MRE of 27.7 million tonnes at 38.7 per cent iron and 0.9 per cent V2O5.

The bulk of the MRE sits at quite shallow depths, starting within 10 to 15 metres of surface.

The shallow, high-grade resource also sits within a relatively short distance of the proposed Gabanintha high-purity vanadium processing plant as outlined in the DFS.

While additional metallurgical testwork, engineering work and assessment
of relevant modifying factors is required to assess the true potential at Yarrabubba, these early indications are highly promising.

SinoSteel deal

TMT has signed a letter of intent with SinoSteel for a life-of-mine offtake agreement and engineering, procurement and construction (EPC) agreement for Yarrabubba.

The offtake agreement includes pricing and volume arrangements across the life of the project.

The EPC agreement will include the processing plant infrastructure, non-processing infrastructure and ancillary facilities, pending project financing arrangements and an agreement upon commercial terms.

While the agreement is non-binding, both parties have indicated an intention to enter into binding contracts in the future for EPC and offtake deals.

While Yarrabubba is still in its earliest phases, there seems to be considerable promise on the horizon to provide significant upside to the wider Gabanintha project.

Technology Metals is trading 5.88 per cent higher for 36 cents at 1:40 pm AEDT.

TMT by the numbers
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