QEM’s Julia Creek vanadium and oil shale project is expected to cost $791 million to bring into production and deliver about $21.7 billion in revenue over its life, a scoping study shows.

Announcing the results from the study, QEM said it had demonstrated that the project had robust economic outcomes and no significant issues to prevent it from progressing to a pre-feasibility stage.

It is based around a 30-year mine schedule with a production target of about 10,571 tonnes of vanadium pentoxide (99.5 per cent pure) and 313 million litres of transport fuel per annum.

The study points to a post-tax NPV of about $1.106 billion and a payback period of about five years from the start of mining.

“This study represents a significant milestone for the company and the Julia Creek project,” QEM managing director Gavin Loyden said.

“For the first time, we have detailed initial financial analysis to complement the technical and exploration achievements we’ve made to date.

“We are seeking to develop a major, long-term project at Julia Creek and this study clearly articulates the potential that exists at our flagship project and reaffirms our ambition to become a key player in the long-duration vanadium battery storage market.”

The pre-production capital expenditure estimate of $791 million for the Julia Creek project excludes contingency costs and indirect costs. Inclusive of these costs, it is estimated at $1.096 billion.

Study outcomes are based on a projected vanadium pentoxide (V2O5) selling price of about $US11.56/lb and transport fuel at $AU1.20/L ($AU191.18/bbl) excluding excise and GST.

The Julia Creek project comprises four granted exploration permits for minerals (EPMs) covering about 250sq km and is located 16km south-east of the Julia Creek township.

The tenements form part of the Toolebuc Formation – one of the largest deposits of vanadium and oil shale in the world.