Vanadium player Pursuit hits the high-grade trifecta in Scandinavia
Mining & Resources
Special Report:Vanadium pure play explorer Pursuit Minerals says all three of its Scandinavian projects can now produce high-grade vanadium in magnetite concentrates.
The timing couldn’t be better for Pursuit (ASX:PUR), with burgeoning demand pushing the vanadium price past $US33 per pound in October — its highest point in 13 years.
Testing of historical drill holes on the Simesvallen project in Central Sweden confirmed that high-grade vanadium in magnetite concentrates of more than 1.5 per cent vanadium pentoxide (V2O5) could be produced, Pursuit (ASX:PUR) says.
The vanadium at Simesvallen was associated with a 1.5km long magnetic anomaly, which is undrilled to the east of the best historic drill hole.
This indicates vanadium mineralisation is potentially more extensive, and at high grades.
The keys to determining a good vanadium depositcome down to the overall magnetite recovery and the grade of the vanadium produced from that magnetic concentrate.
Now, results from the Simesvallen, Koitelainen (Finland)and Airijoki (Sweden)projects have confirmed that all three of Pursuit’s projects are capable of producing high-grade vanadium in magnetite concentrates.
Pursuit is well placed to take advantage of Scandinavia’s world-class infrastructure, cost effective power, and stable legislative frameworks to accelerate potential development of this quality vanadium project portfolio.
The price of V205 has increased by 300 per cent this year to over $US33 per pound in October — its highest point in 13 years.
Of all the so-called “battery metals” needed in modern energy storage devices, vanadium has attracted the most attention from ASX small cap investors in recent times.
Vanadium is the key commodity in Vanadium redox flow batteries (or VRFBs) which are very well suited to large scale stationary storage applications.
While the long-term story for vanadium may be the battery sector, China’s introduction of new rebar standards for steelmaking next month is creating tightness in the market right now.
China introduced stricter standards to double the amount of vanadium used in its rebar — a reinforcing steel used in concrete — following recent earthquakes.
One kilo of vanadium added to a 1,000 kilos of steel doubles the strength of the steel.
Only about 100,000 tonnes of vanadium will be produced this year — but that may need to triple over the next five to six years to keep up with demand.