New processing technology recovers 95%+ of VanadiumCorp’s metal value
VanadiumCorp Resource Inc. (TSXV: VRB) 100% owns the Lac Dore Vanadium-Iron-Titanium project in Quebec, Canada. The Company also has another smaller project known as the Iron-T Vanadium Project also in Quebec, and royalties on the Raglan Nickel-PGM mine.
The Company is looking to take a vertically integrated approach. They are also developing leading process technologies ‘VanadiumCorp-Electrochem Processing Technology’ and ‘Electrochem globally patented Electrowinning’ technology.
The Lac Dore project spans over 452 km as shown below.
The NI 43-101 vanadium resource estimate is 99.1Mt @ 0.43% V2O5 (Inferred), or 1.08% V2O5 in magnetite concentrate. Mineralization is at surface and open at depth and along strike. The contained vanadium resource is 282,370 tonnes V2O5 in magnetite concentrate. Vanadium recovery from magnetite concentrate is 95% indicating favorable metallurgy.
VanadiumCorp’s 100% owned Vanadiferous titanomagnetite (‘VTM’) resource at the Lac Dore Project represents ideal feed stock for the new carbon free and efficient process developed by VanadiumCorp & Electrochem. Of significance, the conventional primary process recovery from magnetite concentrate averages 1.0% V2O5, and the new process recovers 95%+ of ALL metal value including titanium and iron. Clearly this is very helpful towards the project’s economics.
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Adriaan Bakker, CEO of VanadiumCorp states, “The advantage of monetizing all three metals from VTM provides a distinct advantage for our 100% owned VTM resources in Quebec and joint licensing opportunity of the technologies worldwide. Our collaboration with Electrochem first began by addressing the industry need for a better process method for vanadium electrolyte. Utilizing a custom reactor and combining technologies, Phase II testing and trial production subsequently confirmed the ability to process magnetite regardless of origin and various feed stocks that many companies had considered waste until now.”
The November 2017 PEA resulted in an after-tax Net Present Value (NPV) of C$814M, post inflation but not discounted. The after-tax Internal Rate of Return (IRR) is 15.42%. Life of Mine (LOM) is 20 years, requiring 64% of the presently known inferred resources with an after-tax payback period of 6 years after start-up. CapEx is estimated at C$321m. The Company plans re-filing an amended PEA technical report for its Lac Dore Project by early June 2018.
The Lac Dore project is close to all infrastructure (road, rail, 161Kv power, workforce, water, and airport). It is also close to the mining town of Chibougamau, located in mining friendly Quebec, Canada.
Near term catalysts include the amended PEA, further developments with Ultra Power Systems Limited to pursue the joint interest of commercializing and deploying Vanadium Redox Flow Batteries (VRFB) for microgrid applications. Other possible catalysts would include any off-take announcements or project financing as well as any licensing agreements.
Market Cap is currently C$23m. The resource size is good, with exploration upside and the PEA is currently being amended. For now the market is not really giving any value for their patented technology, which once proven successful at scale will add significant value.
In conclusion, VanadiumCorp has an excellent growing resource in the safe and mining friendly jurisdiction of Quebec Canada. Additionally, VanadiumCorp offers a new processing technology that recovers 95%+ of all the metal value in their ore, and has potential for licensing revenues. All eyes will be on the updated PEA to be out very soon.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>