Critical Minerals Group is looking to raise $5m through its initial public offering to fund development at its flagship Lindfield vanadium project in Queensland.

The funds will be raised through an offer of 25 million shares priced at 20c each, giving the company an indicative market capitalisation of $8.8m.

Proceeds will be used to fund bulk ore sample collection through its large diameter core drilling campaign, adding to their existing JORC resource, metallurgy and pilot plant test work and a scoping study for Lindfield.

“The Lindfield Project is at the  development stage, it  already has existing road and railwithin the Lindfield Project, with direct transportation to the port of Townsville,” managing director Scott Drelincourt says.

While adoption of vanadium redox flow batteries has been slow – representing just 10% of the stationary battery market to date, the battery metal is widely considered to become a key resource as the world moves increasingly towards electrification to support net zero emissions.

Global production of vanadium, which is also used to strengthen steel, is expected to increase by as much as 50% by 2030.

And it is not just vanadium – Critical Minerals Group also holds the Figtree Creek and Lorena Surrounds, both very exciting greenfield copper-gold projects in the Cloncurry region that support the company’s focus on critical mineral opportunities.


Plenty of vanadium potential

Lindfield covers 295km2 in a well-known vanadium province just 30km northeast of Julia Creek in northern Queensland.

It is close to main infrastructure facilities and is intersected by the Flinders Highway and the Great Northern Railway Line at the southern end of the tenement.

The project already has a number of drill holes that intersected promising grades within the shallow Toolebuc Formation along with an existing JORC Inferred resource of 210 million tonnes grading 0.39% V2O5 that starts at surface down to around 35m depth.

This shallow mineralisation also lends itself to development via open pit mining, which could reduce mining costs due to low strip ratios.


Well positioned copper-gold plays

While vanadium is front and centre of Critical Minerals’ attention, its copper-gold projects are exciting in their own right.

Figtree Creek project covers 70km2 of ground located just 5km south of Cloncurry, northwest Queensland, and includes a lapsed historical mining lease that was never exploited.

It is located near a number of advanced copper-gold projects and mines such as the Great Australian Mine (1.69Mt grading 2.29% copper and 0.23 grams per tonne gold) just 3km to the north.

The project area has several rock chip samples, soil samples and stream sediment samples showing anomalous coper and gold assays.

Lorena Surrounds project is a 51km2 tenement broken into three parts, just to the east of Cloncurry.

It is surrounded by advanced mining projects such as Glencore’s Mt Margaret copper mine, the Lorena gold mine itself and the Great Australian Mine. Both projects are still at their application stage.

This article was developed in collaboration with Critical Minerals Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

This article also appeared on The Australian.