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Golden Deeps has unveiled an updated resource for a high-grade vanadium project in Namibia.

The update has not appeared to impress the market — despite vanadium prices hitting new highs — with Golden Deeps (ASX:GED) share price taking a 7 per cent hit to 4c in morning trade.

The resource — at a project called “Abenab” — is on the smaller side at 1.12 million tonnes grading 1.28 per cent vanadium pentoxide (V2O5), 3.05 per cent lead, and 1.25 per cent zinc.

The previous “inferred” resource, estimated in 2012, was 0.86 million tonnes at 1.25 per cent V2O5.

Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.

There was “excellent potential” to increase the resource by further drilling at Abenab — and by including the “geologically-separate” Christiana mine area 200m away, Golden Deeps chairman Michael Minosora told investors.

At Christiana, Golden Deeps has sampled V2O5, lead and zinc over a length of 1km.

The Golden Deeps share price has traded between 2.5c and 8.4c over the past year.
The Golden Deeps (ASX:GED) share price has traded between 2.5c and 8.4c over the past year.

The company is compiling a 3D model of the Abenab and Christiana mineralisation ahead of a major drilling campaign designed to prove up an “economically viable orebody”, Mr Minosora said.

Abenab was considered the “world’s richest” vanadium operation when it was mined between 1921 and 1947.