Technology Metals upgrades WA vanadium project mineral resource by over 25%

Technology Metals (ASX:TMT) has today unveiled to market an increase of 26% to the ‘measured and indicated’ mineral resource attached to its WA-based vanadium project in the state’s north. 

That project is the Murchison Technology Metals Project (MTMP), which represents the company’s flagship development. 

Today, the ‘measured and indicated’ component of its mineral resource estimate has climbed by 26% to 63.2Mt of ore containing an average vanadium grade of 0.9%. 

The measured mineral resource estimate on its own at Yarrabubba (Murchison) sits at 5.9Mt at 1.0% vanadium and 11.2% titanium dioxide.

Already robust economics improved

In August, the company highlighted it would move ahead to Final Investment Decision (FID) on the project before 2023. 

An integrations study posted at the same time posted the following credentials to the MTMP: 

• Average annual earnings of $182m 

• 25-year life of mine revenue of $8bn

• Ilmenite production rate of 96,500tpa in first stage

• Project valued at $942m 

• Internal rate of return of 23%

An explanatory note: before it begins producing Vanadium for use in steel and also big battery energy storage systems (BESSies), Technology Meals will first produce ilmenite at MTMP for early sales to Asian markets to keep afloat revenue. 

International heavyweights interested 

The company has this year formed a loose partnership with Indian industrial giant Tata Steel to explore ‘green steel’ opportunities; while a partnership with Japanese tech company LE systems focuses on big battery applications. 

In the case of batteries, the company is exploring ways to include Vanadium electrolytes into battery storage assets to improve performance. 

As for steelmaking, vanadium has ‘green steel’ applications in that the mineral can be added as an alloy to steel products in a way that ultimately reduces emissions associated with manufacturing. 

Tata Steel is the world’s 10th largest steel producer, and appears to be targeting ESG outcomes ahead of the Indian government’s 2070 net zero target. 

Significant benefits: Management 

“We are very pleased with this outstanding result, with the field work completed in the first half of the year delivering a significant 26% increase to the all-important Measured and Indicated Resource estimate for the MTMP,” Technology Metals MD Ian Prentice said. 

“The Implementation Phase of the Project is progressing well, albeit facing timing pressures in line with the broader resourcing challenges facing our industry, with our team maintaining a clear focus on delivering a positive outcome for [a] timely development.” 

“An enhanced Ore Reserve position, inclusive of the elevation of some of the important shallow material at Yarrabubba, is expected to provide significant benefits for the economics of the MTMP.”

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Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Technology Metals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.