Neometals and AVL sign term sheet to explore critical minerals prospects

Map: Australian Vanadium

Australian Vanadium Limited (AVL) announces that Neometals Ltd, through its wholly owned subsidiary Australian Titanium Pty Ltd (ATI), has signed a non-binding Term Sheet to explore opportunities for AVL to process coproduct vanadium concentrate from Neometals’ 100% owned Barrambie Project and to co-locate or share non-process infrastructure near AVL’s proposed Tenindewa processing plant site.

Neometals recently announced the results of a pre-feasibility study (PFS) which assumes production of ilmenite as well as an iron/vanadium co-product.1 Under the Term Sheet this co-product would be supplied to AVL for vanadium extraction.

Neometals’ staged processing flowsheet will see a mixed gravity concentrate subject to further processing via a low temperature roast (LTR) to generate ilmenite and the separate iron/vanadium concentrate. The Term Sheet also sets out that the parties will work together to investigate opportunities for ATI to construct an LTR plant near AVL’s processing plant site and to co-locate or share non-process infrastructure.

Managing Director, Vincent Algar comments, “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. We have developed a good relationship with the team at Neometals and ATI and look forward to finalising the details of this opportunity with them. The projects are well aligned and the technical knowledge held between the two teams will generate further opportunities for cost optimisation for all parties.”

Chris Reed, Neometals’ Managing Director comments, “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.”