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 completed a Definitive Feasibility Study (DFS) into the production of vanadium (FeV) from the Barrambie deposit in May 2009.
The key results of the DFS include:
- Average EBITDA per annum of A$105 million using an average ferrovanadium price of US$30/kg and an exchange rate of AUD$1=USD$0.60.
- Operating costs of less than USD$20/kg of vanadium.
- Initial mining reserve of 39.7Mt of ore at a grade of 0.82% V2O5.
- Indicated and Inferred Resource of 65Mt of vanadium ore at a grade of 0.82% V2O5.
- Minimum of 12 years mine life at throughput of 3.2Mt per annum.
- Capital cost estimated at A$628.9 million.
Other key points relating to the project:
- A Memorandum of Understanding has been entered into for the sale of the entire annual vanadium production for the first ten years.
- 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.
- Vanadium is emerging as a critical element in cutting-edge emission-free technologies. Development in this area would create an entirely new source of demand - exacerbating supply issues.
2012-05-28 00:37:52
NEWS FLOW...
April 30, 2012
Quarterly Activities Report
In the December quarter of 2011 the Company commenced a concept study level evaluation of the production of a titanium rich concentrate from the Eastern Band of the Barrambie Fe-Ti-V deposit. Initially the study evaluated the recovery of titanium and iron units via the production and export of a titanomagnetite concentrate, the study has now been expanded to evaluate recovery of Fe-Ti-V units via a proprietary hydrometallurgical route.
More...July 20, 2011
Significant cost savings identified at Barrambie in EPC budget estimate
Based on the EPC budget estimate received, Barrambie capex potentially reduced by 18% or A$100 million compared to 2009 DFS on a like-for-like basis.
Processing plant opex estimated to be 6% lower than DFS, despite strong Australian dollar.
Indicative preliminary financing proposals received from parties wishing to participate in a dedicated special purpose vehicle.
More...June 23, 2011
Barrambie - New MOU With NFC
Reed Resources enters into replacement MOU with NFC and Arccon in relation to Barrambie project.
Replacement MOU is on the same terms as the original MOU, but extends the period for provision of fixed price EPC quote by NFC and Arccon to 31 July 2011.
An estimate to +/- 7.5% accuracy expected by end of June 2011.
SKM appointed to estimate revised operating costs for Barrambie based on plant optimisations arising from NFC and Arccon’s design work. Initial indications suggest savings are achievable, despite higher input costs.
Financing discussions ongoing.
More...November 11, 2010
MoU signed with NFC for development of Barrambie Vanadium Project
Reed Resources has entered into a Memorandum of Understanding (MoU) with China Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd (“NFC”) and Australian firm Arccon Pty Ltd.
The MoU covers an engineering procurement and construction contract (EPC) and project financing assistance for Reed’s Barrambie Vanadium Project.
NFC and Arccon will provide a revised, fixed-price EPC estimate.
Use of Chinese equipment and services is expected to deliver significant savings on original Definitive Feasibility Study capital cost estimate of A$628.9 million (subject to escalation and foreign exchange movements).
More...October 1, 2010
Negotiations with NFC for Barrambie Vanadium Project continuing, exclusivity period expires
Active negotiations with China Non-ferrous Metal Industry’s Foreign Engineering and Construction Co Ltd (NFC) are continuing in relation to the provision of a fixed-price EPC contract and financing assistance.
The Exclusivity Agreement between Reed Resources and NFC lapsed on 30 September 2010.
Reed is now also able to engage with other parties that have expressed an interest in financing, equity participation and off-take.
Reed Resources completed a Definitive Feasibility Study into a Ferrovanadium operation producing 6,300 tonnes of vanadium per annum from the Barrambie deposit in May 2009. The project is currently in the approvals stage.
More...August 24, 2010
Barrambie - NFC Update
Reed Resources has extended exclusivity period with China Non-ferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd (“NFC”) until 30 September 2010.
The discussions to date specifically cover an engineering procurement & construction contract and project financing.
More...June 28, 2010
Reed commences Public Environmental Review on its Barrambie Vanadium Project in WA
More...May 17, 2010
NFC granted exclusivity period to assess Barrambie Vanadium Project
Reed Resources has entered into discussions with China Non-ferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd (“NFC”) which, if successfully concluded, would allow for the development of Reed’s Barrambie Vanadium Project,
The discussions to date specifically covers an engineering procurement & construction contract and project financing,
The approach to Reed Resources has been facilitated by Western Australian engineering and construction company Arccon (WA) Pty Ltd (Arccon), and
Reed has agreed to deal exclusively with NFC and Arccon until 31 August 2010.
More...May 5, 2009
Completion of Definitive Feasibility Study
Reed is pleased to provide the details of its two year, $15million definitive feasibility study into the Barrambie Vanadium Project. The key details are:
- Average EBITDA per annum of A$105 million at US$30/kg vanadium.
- High grade resource of 0.82% V2O5.
- Initial mining reserve of 39.7 Mt of ore at a grade of 0.82% V2O5.
- Indicated and Inferred Resource of 65Mt of vanadium ore.
- Minimum of 12 years mine life at throughput of 3.2 Mt per annum.
- Capital cost estimated at A$628.9 million.
- Total operating cost of less than US$20/kg vanadium.
May 5, 2009
Initial Ore Reserve Statement
Mining reserve of 39.7 Mt of ore at a grade of 0.82% V2O5.
Conversion of Indicated Mineral Resource to Probable Ore Reserve is 81%.
Mine life of 12+ years at 3.2 Mtpa throughput.
More...February 13, 2009
Final Mineral Resource Estimate for Barrambie Vanadium Project
The Barrambie Resource has been increased by 80% to 65.2Mt @ 0.82% V2O5 - confirming it as an exceptionally high grade resource.
The Resource has been modelled to a depth of about 60 metres below surface, which is the limit of drilling, and remains open at depth and along strike.
More...January 30, 2009
Quarterly Activities Report
Completion of northern extension and infill drilling adds an extra 6 km strike length of vanadiferous magnetite mineralisation.
Definitive feasibility study (DFS) by SKM on schedule for completion end of March 2009.
More...December 8, 2008
Final batch of Barrambie vanadium drill results
All assay results from the infill drilling programme (364 holes) in the northern half of the Barrambie mining lease have been received and confirm continuation of the exceptional grades in both the Central Bands and Eastern Band.
The average grade of intercepts of mineralisation is 0.77% V2O5, 15.3% TiO2 and 31.3% Fe, when using a 0.5% V2O5 lower cut-off grade.
All of the mineralisation is in strongly to weakly oxidised material and is amenable to low-cost open pit mining and beneficiation.
The revised Mineral Resource estimate is scheduled for completion at the end of January 2009.
More...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...
