Good news for Hardey as research confirms strong vanadium results
Special report: Explorer Hardey Resources has received very good news about four out of six vanadium projects it’s planning to buy.
Hardey last month announced plans to buy Vanadium Mining, a privately-held explorer that owns four highly prospective vanadium projects in Queensland and two in the Northern Territory.
The four projects in Queensland are near Intermin Resources’ (ASX: IRC) globally significant Richmond project, which hosts an inferred resource of about 2.6 billion tonnes at 0.32 per cent vanadium pentoxide (V2O5).
Ahead of the deal, Hardey has been conducting due-diligence – which has shown the four oprojects are within an enriched vanadium zone with significant exploration upside.
The projects – Sharptooth, Spike, Cera and Petrie – sit atop a geological structure known as the Toolebuc Formation which is highly prospective for vanadium.
Hardey has been evaluating nearby exploration undertaken by Intermin as well as Liontown Resources (ASX: LTR). Liontown’s maiden inferred resource is 83.7 million tonnes at 0.3 per cent vanadium.
Hardey’s review of 170 drill-holes from 2010 shows “widespread elevated vanadium results” along a 150km area.
One of the projects, Cera, has results of up to 0.58 per cent.
Hardey now expects to be able to model an inferred resource that complies with the JORC (2012) standard.
JORC compliance refers to the mining industry’s code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
“The early due diligence findings are highly encouraging, particularly the confirmed prevalence of the Toolebuc Formation across the projects,” said
Hardey Resources Executive Chairman, Terence Clee.
“More significantly, the Board is delighted with the prospect of being able to model a JORC-compliant inferred vanadium pentoxide resource, as this materially de-risks this Queensland projects.”
Mr Clee said there was a very strong outlook for vanadium right now partly because of demand for steel production in China.
About 90 per cent of vanadium goes into steel production – particularly reinforcing bars (or “rebar”) used to make stronger concrete.
“China is a big driver because they are now enforcing safety rules to make higher-grade rebar,” Mr Clee said.
Demand from the energy storage market is also starting to take-off.
Vanadium redox batteries (VRBs) are an emerging solution and industry watchers predict VRBs could account for around 30 per cent of the global rechargeable battery sector over the next decade.
The Vanadium Mining purchase will be put to a shareholder vote at an upcoming general meeting.
If the deal goes ahead, Hardey will issue 550 million shares at 2c each to VanMin’s owners along with a 3 per cent royalty.
This special report is brought to you by Hardey Resources.
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