Pursuit readies for scoping study after defining new resource at Koitelainen Vosa
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Special Report: Pursuit Minerals has defined a mineral resource at its Koitelainen Vosa vanadium prospect in northern Finland – clearing the way to ramp up its scoping study.
Pursuit’s (ASX:PUR) inferred resource totals 116.4 million tonnes, with 5.8 million tonnes of magnetite at 2.3 per cent V2O5 (in magnetite concentrate), for 131,000 tonnes of V2O5.
The inferred mineral resource is the key input into a scoping study (the first proper look at whether a resource can be mined economically), which is due for completion in April.
Mineral resources are categorised in order of increasing geological confidence from inferred to indicated to measured.
Pursuit Minerals Managing Director Jeremy Read said it was very pleasing to see the inferred resource come in at the upper end of the tonnage range, as defined from the previous exploration target of 80 million tonnes to 105 million tonnes.
The vanadium magnetite concentrate grade at 2.3 per cent V2O5 was also at the upper end of the grade range.
“The inferred mineral resource result for D Zone, as a part of the overall mineral resource, is extremely encouraging with a tonnage of nearly 60 million tonnes and a vanadium magnetite concentrate grade of 2.5 per cent V2O5, which means the vanadium magnetite concentrate produced from Koitelainen is the second highest grade that we know of — a super result,” Mr Read said.
Just yesterday, Pursuit Minerals confirmed a brand-new vanadium discovery over at its Airijoki project in Sweden.
The company told investors results showed the mineralisation at this new Northeast Magnetic Zone also produces high-grade magnetite concentrates.
Mr. Read said the Northeast Magnetic Zone was a major new vanadium discovery.
“We knew from the two historical drill holes that the Southwest Magnetic Zone at Airijoki was mineralised with vanadium, but the Northeast Magnetic Zone had not been drilled previously,” Mr Read said.
“To be able to confirm we have vanadium mineralisation producing high-grade vanadium magnetite concentrates in the Northeast Magnetic zone over 1.9km of its 2km strike length is a great outcome for the Airijoki Project.”
Established global vanadium producers like Bushveld (LON:BMN) and Largo Resources (TSE:LGO) are enjoying a solid run following a year of extraordinary prices – and there’s a bunch of ASX listed juniors, like Pursuit, champing at the bit to join them.
Bushveld just announced underlying earnings of $US107.5 million in 2018 – a 350 per cent increase on the year prior.
Early in January, Toronto based Largo said that while vanadium prices had receded to between $US15.50-$US16.00/lb, this was still up 38 per cent when compared to the same period last year.
But spot prices look to have stabilised, with another surge expected after Chinese New Year.
Largo (and many others) continue to believe that a structural supply deficit means elevated pricing should remain in the short-term.