Study highlights value in Lindfield vanadium plans

A scoping study has thrown up favourable numbers on Critical Minerals Group's plans to develop a vanadium mine at the Lindfield project near Julia Creek. Subsequent to this release, Critical Minerals Group issued a revised statement to the ASX the outcome of this scoping study. See updated report HERE The study, based on a 4Mtpa ROM vanadium operation over more than 25 years, pointed to a net present value of $778 million for the project. The direct capital costs to bring the operation online were estimated at $402 million, and this would enable production of about 11,000 tonnes of vanadium pentoxide and 550 tonnes of molybdenum. High-purity alumina (HPA) has been identified as a potential product which could provide further significant financial upside for the project. However this stream was not included in the financial analysis. Related: CMG inks HPA technology deal with Lava Blue “We are extremely excited to announce that the Lindfield vanadium project has been assessed as a financially viable mining project," Critical Minerals Group managing director Scott Winter said. "With an IRR of 18.1 per cent and a positive NPV of $778 million from the vanadium pentoxide and molybdenum trioxide products streams, this is a terrific result and one that underpins the next phase of study and test work. "CMG has been focussed on assessing the resource to identify the potential for the various viable product streams and the results show that vanadium pentoxide, high purity alumina and molybdenum trioxide are all profitable." He said the study, undertaken by Wave Engineering, had been a success in refining the process flow sheet to the point of achieving concentrate and recovery grades that warranted the next phase of pilot plant testing. "Furthermore the testing has identified a potentially significant upside in the overall resource with the positive beneficiation results achieved in the processing of the upper seam," Mr Winter said. "An assessment of the site-based development infrastructure has estimated the direct cost capital at $AU402 million (not including indirect costs, EPCM, owner’s costs and contingency), with opportunities for reductions in capital as further detailed engineering is progressed." Subsequent to this release, Critical Minerals Group issued a revised statement to the ASX the outcome of this scoping study. See updated report HERE

Study highlights value in Lindfield vanadium plans

Industry Queensland

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