Ann: Project Enhancing RC Drilling Confirms High Grade Continuity, page-28

"Technology Metals Australia Limited (ASX: TMT) posted the recent updates on the results of the Reverse Circulation (“RC” drilling component of the Stage 1 Project
enhancement drilling program that has been recently completed along with the Definitive Feasibility Study (“DFS” at its Gabanintha Vanadium Project on November 8, 2018.
The results from the stage 1 of the RC drilling enhancement drilling program delivered exceptional strike continuity, and down dip extension, of the massive magnetite mineralisation. According to the managing director Ian Prentice, these results will materially increase the Global Resource and more importantly the Indicated Resource component, of this globally significant vanadium Project. These results further indicate the proportion of this previously defined Inferred Mineral Resource that will be upgraded to Indicated Mineral Resource category, and the Inferred Mineral Resource will be extended further. The results have further confirmed relatively shallow oxidation profile along the strike length of the Central Pit area, with negative or low (<3%).
All diamond core from the diamond drilling holes have been completed in the North and Central pit areas of the Northern Block. This core is now dispatched to the laboratory in Perth, where sections of whole core have been selected and removed by the Company’s metallurgical consultants for comminution and another metallurgical test work. Commencement of the Cutting and sampling in preparation for assay on the remaining core began two weeks ago, with assay results expected to be received from these samples in late November / early December. The RC infill drilling of the southern tenement was successful in intersecting the high-grade massive magnetite mineralisation in every hole.
The results indicated the scope to materially deepen the open pit design, and that the Inferred Mineral Resource will be extended further down dip. Proportion of the previously defined Inferred Mineral Resource will be upgraded to Indicated Mineral Resource category. Geotechnical consultants have collected, reviewed and analysed geotechnical data from the diamond drilling. The outcomes of this work will be incorporated in to updated open pit mine designs as the DFS progresses.
Global economic growth and increased intensity of use of vanadium in steel in developing countries will drive near term growth in vanadium demand. Increasing demand of Vanadium and limited supply will push the prices to higher levels. Technology Metals is expecting the Gabanintha mine to be up and completely run by 2021. Approximately $3.1 billion of total earnings before interest tax, depreciation and amortisation will be generated from the Gabanintha operation, near Meekatharra in Western Australia as per the base case estimates. Initial construction cost of $380 million will be paid in just 2.5 years. The calculations are done taking the V2O5 price of about $US13/ lb. Presently, the vanadium spot price is above $30/lb, and rising. TMT is one of the ASX listed stock that offers exposure to Vanadium and it made day high of $0.565 and closed at the levels of $0.525. TMT expects DFS to be completed by the June quarter of next year."