VanadiumCorp to benefit from rising vanadium spot prices
Vanadium was first discovered in 1801. It was mistaken for chromium and wasn’t rediscovered for another 30 years. One of the most important industrial uses of vanadium is in the making of steel alloys, added in small quantities, as little as 0.15% vanadium is proven to double the strength of the alloy. This steel is used to make special tools and equipments. It is used in steel rebar, car gears, crank shafts, pipes and tubes in the chemical industry etc. In most recent years vanadium has emerged as a useful mineral for energy storage batteries. Henry Ford was one of the first exponents of the metal, using it to strengthen the Model T – the car credited with introducing the automotive industry to the masses in the early 1900s. Fast forward to today as the EV boom is taking off, vanadium is also booming due to its use in steel rebar and vanadium redox flow batteries. The world is slowly transitioning away from fossil fuels, and the metal could have a big role to play particularly in large scale energy storage.
Vanadium spot prices have almost tripled over the past year, while many other EV and base metals have recently fallen; vanadium continues to rise in value. China’s new steel rebar rules requiring vanadium is the main reason.
VanadiumCorp Resource Inc. (TSXV: VRB) intends to become the leading vanadium supplier to the emerging vanadium battery market for grid level and renewable energy storage. The Company is located in Quebec, Canada. VanadiumCorp’s proprietary breakthrough process is 100% green with unprecedented recovery of metal value. Further advantage is 100% ownership and development of two of the purest deposits in the world.
Lac Doré Vanadium Project
The Company’s flagship 100% owned Lac Dore project spans over 45 km2 and is located close to the mining town of Chibougamau in mining friendly Quebec, Canada. Their current NI 43-101 vanadium resource measures 621 million lbs V2O5 from VTM concentrate grading 1.08% V2O5. Mineralization is at surface, open at depth and along strike, with nearby infrastructure such as road, rail, 161Kv power, workforce, water and a local airport. 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.
President and CEO of VanadiumCorp Adriaan Bakker states: “The biggest opportunity in the vanadium market is really in energy storage. We identified some key facts in the vanadium market. Number one being vanadium electrolyte that is required by batteries is a non-existent commodity. It is created by an offshoot of production from the steel industry from this inefficient type of production. There is just not enough vanadium available to go into energy storage.”
VanadiumCorp and Electrochem Process Technology (“VEPT”) (patent-pending) have partnered to develop a chemical process method applicable for vanadium, iron and titanium. This will allow them to explore innovative new approaches by utilizing half the conventional energy and featuring a negligible carbon footprint that will address the industry challenges and the global shortage of battery grade vanadium.
VanadiumCorp has a good sized resource, with exploration upside, currently supported by very strong vanadium spot prices. For now their patent pending technology is not showing any value on the market, once proven successful at scale it will add significant value to the Company. The market is currently awaiting the updated Preliminary Economic Assessment [PEA] which will give investors a better idea of the project economics. On June 11, 2018 VanadiumCorp received by email a notification of a cease trade order. As a result, VanadiumCorp will remain cease traded by the BCSC Commission until the newly authored PEA can be filed. Stay tuned.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>