Australian Vanadium Limited (AVL) has announced the signing of a non-binding Term Sheet with Neometals Ltd through its wholly-owned subsidiary Australian Titanium Pty Ltd (ATI).
The Term Sheet aims to investigate possibilities for AVL to process the coproduct vanadium concentrate from Neometals’ Barrambie Project and to share or co-locate non-process infrastructure close to AVL’s proposed Tenindewa processing plant location.
Neometals recently released the results of a pre-feasibility study (PFS) that assumes ilmenite production together with an iron/vanadium co-product. This co-product would be given to AVL for vanadium extraction under the terms of the Term Sheet.
A mixed gravity concentrate will be subjected to further processing using a low-temperature roast (LTR) to generate ilmenite and a separate iron/vanadium concentrate in Neometals’ staged processing flowsheet. The parties will also collaborate to evaluate the potential for ATI to build an LTR plant near AVL’s processing plant and to co-locate or share non-process infrastructure, according to the Term Sheet.
“The Australian Vanadium Project and Barrambie Project are the most well understood and advanced vanadium titanium deposits in Australia. This collaboration will provide synergies, allowing the two projects to move forward even more confidently, using mutual understanding of the ores and processing. The Vanadium Triangle in the Midwest contains many remnants of the once massive Murchison Layered Intrusive Complex, a Bushveld Complex-sized intrusion which hosts a number of potentially economic vanadium titanium magnetite (VTM) deposits. Being able to process our own concentrates and also offer processing infrastructure to other projects, will bring great benefit to the region and Australia as a whole and establish Australia as a cornerstone producer of vanadium products for green steel and energy storage applications. AVL welcomes discussions with other companies in the region that see benefit in the hub approach that AVL and Neometals are considering,” Managing Director Vincent Algar said.
Neometals’ Managing Director Chris Reed stated, “We welcome the opportunity with AVL to investigate co-location, infrastructure sharing and the potential to supply high-grade vanadium coproduct from our proposed mineral separation plant. Barrambie is one of the highest-grade titanium deposits in the world and can produce both a chloride-grade ilmenite product and vanadium-iron coproduct from low-temperature roasting and magnetic separation of Barrambie gravity concentrates.”
The Term Sheet has a term of 9 months, which can be extended in 6-month increments with mutual consent, during which time AVL, Neometals, and ATI will investigate the possibility of entering into a binding agreement or agreements. In relation to this, the parties will deal with each other exclusively. Other opportunities may arise, and any party can terminate the Term Sheet at any time.
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