Plans to re-open the Sunday Mine Complex and focus on vanadium ‘almost prophetical’
Vanadium prices have risen sharply recently with the change of Chinese building code standards requiring vanadium to strengthen steel rebar. China, by far the world’s largest vanadium producer and vanadium consumer, has exacerbated the supply deficit by becoming a net importer through the consumption of vanadium supply that was formerly available to end users from other countries. Increased demand for vanadium flow battery applications is also another lesser factor in the vanadium price increase from US $10 to US $33 during 2018.
Western Uranium & Vanadium Corp. (CSE: WUC | OTCQX: WSTRF) recently announced (October 25, 2018) its intention to re-open the Sunday Mine Complex (“SMC”) with the goals of upgrading the vanadium resource and monetizing these already significant vanadium resource holdings. This news comes not long after the Company changed its name from Western Uranium Corporation to Western Uranium & Vanadium Corp. The name change was implemented by the board after having obtained shareholders’ approval at the Company’s Annual General and Special Meeting held in New York City on June 29, 2018.
Mr. George Glasier, President and CEO of Western, commented: “This name change is reflective of Western’s significant vanadium resource holdings and the business opportunities derived from the increased global demand for vanadium in high-strength steel and vanadium flow battery applications.”
The Sunday Mine Complex (SMC)
The Sunday Mine Complex is an advanced stage mine property consisting of five individual mining claims totaling about 3,748 acres in Colorado, USA. SMC has a significant drilling and production history with mining and drilling occurring from the 1950’s through to the mid 1980’s. The complex consists of 5 interconnected underground mines.
Management of Western believes the historic SMC vanadium resource estimate in the SMC technical report is significantly understated. This is because the historical ratio was calculated during primary uranium campaigns and would have by-passed superior grade vanadium in favor of deposits of the higher grade uranium. Also legacy techniques did not support vanadium specific analysis.
Get our daily investorintel update
Summary of historical resources
Western is now in discussions with multiple potential customers and joint venture partners who are requesting ore samples. Given the vanadium commodity price appreciation over the past six months, Western is accelerating production planning at the SMC in anticipation of sourcing an agreement sufficient to base load the SMC.
Near term low CapEx production strategy
Western Uranium & Vanadium Corp. is currently pursuing vanadium supply contracts for a 2/3 year duration. The company already has a uranium supply contract with a U.S. utility company.
Finally, the Company has an Ablation Mining Technology (AMT) that produces an ore comprised of 85-95% of the uranium/vanadium in only approximately 10-20% of the mass of pre-ablation material.
Based in Colorado, Western Uranium & Vanadium Corp. is a conventional mining company focused on low cost near-term production of uranium and vanadium. Shifting the Sunday Mine Complex focus from uranium to vanadium seems almost prophetical. Higher vanadium prices and greater demand from China’s new rebar laws and increased demand for vanadium flow batteries in the mass storage industry means Western Uranium and Vanadium Corp. is well positioned to progress towards a short-term production start up.
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>