Special Report: Pursuit Minerals is ready to make its next move as sampling from its Koitelainen Vosa project in Finland confirms the mineralisation produces exceptionally high-grade vanadium magnetite concentrates.
Pursuit (ASX
UR) told investors the latest results from the final five historical drill holes produced vanadium magnetite concentrates surpassing two per cent vanadium pentoxide (V2O5).
Two standout drill holes even produced concentrate grades up to 3 per cent and 3.4 per cent V2O5.
These grades compete with the very best projects around the world.
Now, the company says it will establish a JORC inferred mineral resource and get cracking on a Scoping Study, which will examine the economics of developing the project.
Pursuit Minerals managing director Jeremy Read said the results from the re-analysis of these five additional historical holes continued the strong trend of very positive results from the Koitelainen project.
“We have now received all the results from the re-analysis of 16 historical drill holes and we are extremely encouraged by the results,” Mr Read said.
“The vanadium mineralisation varies in thickness from 3.5 metres to 97 metres, averaging 20 metres thick, producing vanadium magnetite concentrates ranging from 1.4 to 3.4 per cent V2O5, and averaging 2 per cent V2O5.
Location of the Koitelainen project“All of the re-analysis data has been delivered to our competent person who is now working on converting the Exploration Target to a JORC Inferred Mineral Resource.
“Our expectation is that we will announce the resource early in February 2019,” Mr Read said.
Rapid, low cost development options
Pursuit Minerals is now progressing rapid, low cost “dig and deliver” development plans for its high grade Koitelainen and Airijoki vanadium projects in Finland and Sweden.
“Dig and deliver” refers to simple, low cost processing and export of high-grade vanadium in magnetite concentrate to vanadium smelters overseas.
Pursuit is able to consider this rapid project development concept because of the high-grade vanadium magnetite concentrates produced at Koitelainen and Airijoki.
This process means Pursuit can start making money without funding the expensive processing equipment required to convert this into V2O5 flake.
By exporting high-grade vanadium in magnetite concentrates the timeline to production is significantly shortened, feasibility studies and government approval processes simplified, and capital expenditure requirements substantially reduced.
