Critical Minerals Group (ASX: CMG) has completed a pre-feasibility study for its Lindfield vanadium project, confirming a ‘financially compelling’ critical minerals development.

The project comprises the development of an open-cut vanadium mine near Julia Creek in North-West Queensland and a vanadium electrolyte manufacturing facility at the Parkes Special Activation Precinct (SAP) in central New South Wales.

Critical Minerals Group said the strong return on investment for the combined Lindfield vanadium pentoxide and vanadium electrolyte production strategy justified advancing to a definitive feasibility study and advancing project approvals to support an FID decision next year.

The company said the pre-feasibility study evaluated three production scenarios; 1Mtpa, 3Mtpa and 4Mtpa of run-of-mine material – covering mine production of vanadium pentoxide through to downstream manufacture of vanadium electrolyte for use in vanadium flow batteries.

The project is structured as a staged development, with a vanadium electrolyte facility to be commissioned ahead of the Lindfield mine, bringing forward first revenue to 2028.

The 3Mtpa case has been identified as the preferred development pathway, delivering a pre-tax IRR of 26.6 per cent and pre-tax NPV of $821 million, comfortably exceeding the applied cost of capital.

The project would cost $981 million to bring online and have a mine life of 31 years.