Special report: Emerging vanadium producer Technology Metals Australia is moving towards production in leaps and bounds, achieving several major milestones in just 18 months.

The company (ASX:TMT) is one of the first to have completed a full pre-feasibility study (PFS) on an Australian vanadium project, placing it ahead of the majority of its peers.

Technology Metals only listed on the ASX in December 2016 and in the space of 18 months has completed a major drilling program, delivered a “globally significant” resource, completed a full PFS and is starting a definitive feasibility study (DFS).

The PFS showed that Technology Metals’ Gabanintha mine is worth $1.3 billion – significantly higher than the company’s current market cap of just $25 million.

The company has already proven it can produce a high purity vanadium pentoxide product of over 99 per cent using low-cost conventional processing methods.

Benchmark vanadium pentoxide pricing is based on a 98 per cent purity product. The high purity of Technology Metals’ product means it could potentially receive premium pricing.

Managing director Ian Prentice is currently in China in talks with a number of potential offtake partners.

High purity +99% vanadium pentoxide product from Gabanintha
High purity +99% vanadium pentoxide product from Gabanintha

And the company is not resting on its laurels, with several busy months ahead of it as it works towards its goal of first production in less than three years.

Straight into definitive feasibility

The PFS results have given Technology Metals the confidence to advance the Gabanintha project directly to the DFS stage.

Mr Prentice said “considerable upside” is expected from the work to be completed during the DFS.

There is significant opportunity for Technology Metals to enhance the financial returns of the Gabanintha project by upgrading inferred resources, which will increase the mine life, and optimising an updated mining schedule.

Work will include drilling to upgrade and expand the resource, progression of potential off-take talks with vanadium end users and work to lower the strip ratio of the open pit and increase the project value.

Strip ratio refers to the volume of material that needs to be removed in order to mine the ore. A lower strip ratio reduces the cost of mining.

Technology Metals is also continuing metallurgical test work to assess the potential to extract other valuable commodities from the Gabanintha deposit, including a base metal concentrate – such as cobalt-nickel-copper, a titanium dioxide product and a high-grade iron ore product.

The company will also take bulk samples for pilot scale and product generation test work.

This will provide both plant and equipment vendors with material to confirm the suitability of proposed equipment as well as provide end-users with final product for confirmatory testing.

On top of that Technology Metals is also progressing environmental and heritage studies.


This special report is brought to you by Technology Metals Australia.

This advice has been prepared without taking into account your objectives, financial situation or needs. You should, therefore, consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before acting on the advice.

If this advice relates to the acquisition, or possible acquisition, of a particular financial product, the recipient should obtain a disclosure document, a Product Disclosure Statement or an offer document (PDS) relating to the product and consider the PDS before making any decision about whether to acquire the product.