BARRAMBIE - VANADIUM
If China froze its steel production at the 2006 level (which it hasn’t) but produced the same qualities of steel as the U.S. does – this would require an extra 77million pounds of V2O5 per year - equal to a third of current worldwide consumption
R.Bunting, Stratcor, June07
Reed Resources is currently completing a Definitive Feasibility Study (DFS) into the production of around 6300t of ferrovanadium (FeV) per year from the Barrambie deposit.
- A Memorandum of Understanding has been entered into for the sale of the entire annual vanadium production for the first ten years.
- The Pre-Feasibility Study (PFS) focused on the production of vanadium pentoxide (V2O5) and indicated...
- Annual production of 20million lbs of V2O5
- Capital costs of AUD$256m
- Operating costs of AUD$2.67/lb
- The average V2O5 price for the past four years has been around USD$7.50/lb. Prices have jumped as high as $16/lb in Feb08 (prices can be found here).
- Work on the DFS has subsequently indicated that project economics would be enhanced by further downstream processing into FeV.
- An optimised CAPEX and OPEX should be available in the March Quarter 2009 after which an investment decision would be made.
- Vanadium is mainly used in the hardening of steel and as a result, demand is largely driven by the demand for steel.
- China uses comparatively low amounts of vanadium per tonne of steel produced and will need to dramatically increase its use of vanadium to match the steel quality of regions such as North America and Western Europe.
- Chinese iron imports are expected to double from around 300mt in 2006 to around 600mt in 2012 - refer to quote at the top of the page.
- Vanadium is emerging as a critical element in cutting-edge energy technologies. Development in this area would create an entirely new source of demand - exacerbating supply issues.
NEWS FLOW...
November 6, 2008
Drilling confirms additional 5km of strike length at Barrambie
Latest assay results have confirmed continuation of the vanadiferous magnetite layers over a strike length of 5.4km to the north of the existing Mineral Resource at the Barrambie Vanadium Project.
The high-grade intercepts include 60 intercepts of 3 metres or more (down hole) with a grade in excess of 1.00% V2O5. This includes one exceptional intercept of 17 metres of 1.43% V2O5.
The average grade of all high-grade intercepts received to date (i.e. 494 assays greater than 0.5% V2O5) is 0.78% V2O5, 14.9% TiO2 and 32.0% Fe at a minimum grade of 0.5% V2O5, which has been used as the cut-off grade for Mineral Resource estimates.
All of the mineralisation is amenable to low-cost open pit mining and beneficiation.
A revised Mineral Resource estimate is scheduled for completion in December 2008.
October 31, 2008
Quarterly Activities Report
Completion of northern extension and infill drilling adds an extra 6 km strike length of magnetite mineralisation.
Strategic acquisition of Exploration Licence applications, which encompass the Barrambie Project, will enhance fast tracking development of the vanadium deposit
More...September 1, 2008
Barrambie Vanadium Project Area Significantly Increased
Reed now has the potential to double the strike length of the mineralised zone at Barrambie through the acquisition of an additional 400km2 of ground surrounding the Barrambie Vanadium Deposit.
Geological and geophysical data for the newly acquired tenements confirms that there is excellent potential for an additional 14km of the same type and grade of mineralization as currently being assessed within the Company’s central mining lease (M57/173) . This is slightly more than the mineralised strike length in M57/173.
More...August 4, 2008
Barrambie Feasibility Study Update
Better than expected metallurgical recoveries mean that a partial plant redesign will be required to cope with a 30% increase in output.
Mine planning has indicated a grade of >0.8% V2O5 compared with the plant design grade of 0.7% V2O5.
A 30,000m RC drilling program has been completed over an extra 6km of strike for additional mineral resource and reserve estimations.
More...July 31, 2008
Quarterly Activities Report
Revised Mineral Resource estimate increases resource by 50% and confirms Barrambie as an exceptionally high-grade deposit with 0.82% V2O5 (using a 0.5% V2O5 block cut-off grade). This is the highest resource grade of any of the major vanadiferous magnetite deposits in Australia.
Work on the Barrambie Definitive Feasibility Study (DFS) continued as scheduled during the quarter. The Company’s aim is to establish Barrambie as the world’s most technologically advanced vanadium mine and processing plant, thereby maximising the sustainable competitive advantages generated by being the highest grade resource in Australia. The DFS is due for completion by 15 August 2008.
More...June 5, 2008
$12m Placement to Strategic Investors
$12m raised at $0.90 per share to a syndicate led by Transocean Securities and Patersons Securities to advance the Barrambie Vanadium Project.Strategic investors included Nicholas Curtis (current executive Chairman of Lynas Corporation) and several leading international institutional investors.
More...May 6, 2008
Barrambie Project Expansion and Resource Increase
Expansion of Definitive Feasibility Study to produce Ferrovanadium:- Achieves significant price premium over vanadium pentoxide.
- Enhances project economics.
Significant increased recoveries and reductions in throughput rates from Optimisation Study testwork and metallurgical characterisation.
New Mineral Resource estimate increases resource by 50% and confirms Barrambie as an exceptionally high-grade deposit with 0.82% V2O5 (using a 0.5% V2O5 block cut-off grade). This is the highest resource grade of any of the major vanadiferous magnetite deposits in Australia.
More...April 28, 2008
Quarterly Activities Report
Pilot roast-leach test work results in Germany confirm excellent metallurgical recoveries at lab scale.Gas transport secured.
More...December 19, 2007
Infill drilling confirms high grade vanadium mineralisation
Infill drilling results (154 holes) continue to confirm exceptional grades from both the Eastern Band and Central Bands.Average grade of intercepts of targeted high-grade mineralisation is 0.90% V2O5 and 10.7% TiO2, using 0.6% V2O5 lower cut-off.
All of the mineralisation is in strongly oxidised material, which would be amenable to low-cost open pit mining and beneficiation.
Revised Mineral Resource Estimate planned for completion in March Quarter 2008. More...
November 26, 2007
Barrambie Test Work Results and New Project Manager
Exceptional metallurgical recoveries from roast-leach test work results: >96% recovery of V2O5 from concentrate.Bill Crossley appointed Project Manager for the Barrambie Vanadium Project.
More...October 12, 2007
$16.25m Placement to complete Barrambie Vanadium DFS
Reed Resources has received irrevocable commitments to a capital raising of A$16.25m via a placement of 25m new shares at A$0.65 per share.The placement has been significantly oversubscribed.
Barrambie vanadium project DFS now fully funded. More...
August 8, 2007
Metallurgical Test Work Results and Initial Mineral Resource Estimate at Barrambie
Excellent metallurgical test work results:
- 22% increase in concentrate grade (1.68% V2O5)
- 77% increase in mass recovery to concentrate (64%).
Substantial reduction in beneficiation plant and kiln size expected as a result of concentrate grade and mass increases from Pre-Feasibility Study, with potential to improve with optimisation.
Initial Mineral Resource estimate by Snowden confirms Barrambie as an exceptionally high-grade deposit with 0.82% V2O5 (using a 0.5% V2O5 block cut-off). This is the highest grade of any of the major vanadiferous magnetite deposits in Australia.
More...July 26, 2007
Quarterly Activities Report
Infill drilling results confirm exceptional grades, with an average assay grade of 0.91 % V2O5 and 15.5% TiO2 for intercepts of targeted high-grade mineralisation. Resource Estimate by Snowdens due early August. More...July 23, 2007
Barrambie Vanadium Project - Final Infill Drill Results
Final infill drilling results (69 of 120 holes) continue to confirm exceptional grades from both the Eastern Band and Central Bands.Average grade of intercepts of targeted high-grade mineralisation is 0.90% V2O5 and 15.5% TiO2, using 0.6% V2O5 lower cut-off.
All of the mineralisation is in strongly oxidised material, which would be amenable to low-cost open pit mining and beneficiation.
Mineral Resource estimate is due early August. More...
June 14, 2007
Outstanding Drill Results Continue at Barrambie
First infill drilling results (51 of 120 holes) confirm exceptional grades from both the Eastern Band and Central Bands. Average grade of intercepts of targeted high-grade mineralisation is 0.89 % V2O5 and 17.3 % TiO2, using 0.6 % V2O5 cut-off. All of the mineralisation is in strongly oxidised material, which would be amenable to low-cost open pit mining and beneficiation. More...
May 1, 2007
Final Drill Results - High Quality of Vanadium Mineralisation Confirmed
The latest assay results, predominantly from the Bight and Straight segments, confirm the exceptional tenor and continuity of the massive and disseminated vanadiferous ilmenomagnetite-ilmenite mineralisation in an area that has never been drill tested targeting vanadium. More...
April 27, 2007
Third Quarter Activities Report
During the quarter, the Board appointed Mr Ken Hellsten of Hellsten Resource Management Services (HRMS) as project manager, and assist Reed to establish the study team and prepare a program and budget. A drilling program was subsequently initiated to provide infill and extension drilling of the Barrambie tenements to enable a revised resource estimate to be completed and samples collected for metallurgical testwork. More...
April 4, 2007
Drill Results
The average of all 2,017 assays compiled for the drill holes reported here is 0.47 % V2O5 and 10.87 % TiO2, which includes assays of waste material. Using a cut-off of 0.6% V2O5, 527 assays average 0.90 % V2O5 and 19.9 % TiO2, with 177 assays over 1.00 % V2O5 and a maximum of 1.55 % V2O5. More...
March 2, 2007
Outstanding Drill Results
Assays for 42 of the 142 RC holes drilled have been received and, as anticipated, confirm the exceptional tenor and continuity of both the massive and disseminated mineralisation. More...
February 9, 2007
Feasibility Study Update
As part of the recently commenced Feasibility Study, the Company has commenced an intensive drilling programme to upgrade and extend existing mineral resources at the Barrambie Vanadium Project. More...
January 3, 2007
Barrambie Advances to Full Feasibility Study
The Board of Reed Resources Ltd is pleased to announce that it has decided to progress the Barrambie Vanadium Project to the next stage and a full feasibility study has been commissioned to commence immediately. More...
October 31, 2006
First Quarter Activities Report
During the quarter, the Company commenced a process optimisation study which, when finalised, will result in the commencement of the Feasibility Study. More...
October 13, 2006
Executes Milestone MOU for Vanadium Sales & Marketing
The Board of Reed Resources Ltd is pleased to advise that it has entered into a Memorandum of Understanding (“MOU”) with one of the world’s leading commodity traders to market and sell the total annual vanadium output of the Barrambie Vanadium Project. More...
July 28, 2006
Fourth Quarter Activities Report
The Board is assessing a number of options in relation to funding a Definitive Feasibility Study. More...
February 9, 2006
Pre-Feasibility Results
The study has confirmed that Barrambie is a highly competitive vanadium project. More...
September 21, 2005
Barrambie Test Work Results
The introduction of a conventional magnetic separation circuit into the beneficiation flowsheet has resulted in a 61% increase in the concentrate grade to 1.37% V2O5. More...
June 3, 2005
Resource Estimate & PFS Update
As part of the Pre-feasibility Study (“PFS”) for the production of vanadium pentoxide (V2O5) from Barrambie deposit, independent mining consultants Ravensgate Pty Ltd have prepared an updated resource estimate. More...
