Approved mining permit expands by 375%, and JORC reported resource within the permit increased by over 200%, positioning Manuka as one of the largest emerging vanadium producers on the ASX. Pic: Getty Images
Mining
Special Report: Manuka Resources has positioned itself as one of the largest emerging vanadium producers on the ASX, with the 375% expansion of its Taranaki VTM Project mining permit area.
The permit, MMP55581 held by Manuka’s (ASX:MKR) 100% owned subsidiary Trans-Tasman Resources Limited, now covers 243km2 and includes an additional 967Mt of VTM iron sand resource. This equates to an increase of more than 200% in the project’s reported resource within the mining permit to 1.88Btof VTM.
With a total resource of 3.2Bt of VTM, the Taranaki VTM Project is ranked as one of the largest drilled vanadium deposits globally.
This expansion enables Manuka Resources (ASX:MKR) to increase production rates and improve financial returns due to potential economies of scale. It also allows for a longer mine life and greater flexibility to optimise the Taranaki VTM Project mine plan.
The major boost to resources comes thanks to approvals from the New Zealand Government’s regulatory authority and follows its invitation to Manuka to apply for inclusion in the country’s Fast Track Approvals Bill.
The expanded approved mining permit area now covers 243km2 (up from 66km2) of the Southern Taranaki Bright and includes the previously reported 914Mt VTM resource plus an additional 967Mt VTM resource, which is responsible for the over 200% lift on the reported resource within MMP55581 to 1.88Bt.
Additionally, New Zealand Petroleum and Minerals (NZPaM) granted TTR a four-year extension of term for its 635km2 mineral exploration permit, MEP54068, in the STB.
This contiguous exploration permit, inside the 12Nm limit, covers an additional reported resource of 1.28Bt VTM (see graphic below).
Vanadium’s main use has traditionally been in high strength steel, but its use in safe, low-cost utility scale energy storage batteries could soon take over as the world races to decarbonise.
Manuka is looking to be a low-cost producer of VTM at an assumed bankable feasibility study production rate for the first 20 years of 5Mtpa VTM concentrate. Annual production would also contain 25,000tpa of vanadium pentoxide, making Taranaki potentially one of the largest aspiring vanadium producers on the ASX.
Alan J Eggers, Manuka Executive Director and Chairman of TTR, commented:
“We are delighted to have received these licence approvals from NZPaM. In short, the potential scope of our tier one world class VTM Project has increased.
“In particular, the doubling of the portion of our reported VTM resource covered by the granted mining permit provides us with greater mining flexibility, an extended life of mine and potential to scale up annual concentrate production.
“The larger resource available may also yield economies of scale, further improving the financial returns of the Project and more attractive offtake agreements for the concentrates – aspects that will be optimised as the Bankable Feasibility Study progresses.”
Across the ditch Manuka is tapping into the precious metals upswing after pocketing $8 million in a Bell Potter and Shaw Capital Partners led capital raise.
It’s using these funds mainly to progress mine plans and processing options for the Mt Boppy gold project. Cash flows from Mt Boppy will also support the potential restart of the Wonawinta mine, 150km south of Mt Boppy, as a dedicated silver operation next year.
This article was developed in collaboration with Manuka Resources, 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.
