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The new drill results are supported by historical drilling results which rank **anintha as one of the highest grade vanadium deposits currently being advanced globally. Yellow Rock Resources (ASX:YRR) shares are expected to climb this morning following some very impressive drilling results at its **anintha Project near Meekatharra in Western Australia.
Initial results from the first 10 reverse circulation drill holes conform the existence high-grade vanadium with new grades of 1.36% vanadium over widths up to 12 metres.
News flow will be rapid with another 53 holes to come.
The latest highlights include:
- 34 metres at 0.77% vanadium from 86 metres, including 8 metres at 1.29% vanadium;
- 16 metres at 1.31% vanadium from 12 metres;
- 12 metres at 1.36% vanadium from 36 metres;
- 13 metres at 1.24% vanadium from 77 metres; and
- 17 metres at 0.87% vanadium from 84 metres, including 9 metres at 1.17% vanadium.
The new results are supported by historical drilling results confirm **anintha’s position as one of the highest grade vanadium deposits currently being advanced globally.
The high-grade vanadium is contained within a “massive” magnetite zone.
The zone has been identified along the entire 2 kilometre stretch of the current detailed drilling program, which has been completed at 75 metre line spacing.
Yellow Rock chief executive Vincent Algar commented:
“Results received so far support our belief that we have one of the world’s highest grade vanadium deposits.
"The professional quality of the work completed by our contractors to date puts us in an excellent position on the path to develop the project”.
News flow
Results from another 53 reverse circulation will flow through over the coming weeks.
Additional upcoming catalysts include metallurgical testing and an updated resource estimation. Pit optimisation / mining studies will commence on receipt of all assay results.
Currently 167 historical drill holes support an Inferred Resource of 125 million tonnes at 0.70% vanadium, 8.64%TiO2 and 32.6% iron.
This includes a separate high grade Indicated and Inferred Resource of 60.4 million tonnes at 0.98% vanadium, 11.4% TiO2 and 42.15% iron.
How **anintha is different
The **anintha deposit is an intrusive layered intrusive body smaller, but displaying similar characteristics to the igneous Bushveld Complex, host to some of the world’s most significant platinum, vanadium and chromite deposits.
The deposit is similar to the Windimurra Vanadium Deposit and the Barambie vanadium-titanium deposit located 260 kilometres South and 150 kilometres Southeast of **anintha respectively.
**anintha differs from both of these deposits by the consistent presence along strike of the 10 metre thick basal MMZ and the higher overall grade of the **anintha Orebody.
**anintha is: 0.98 % vanadium, in MMZ 0.7% vanadium overall, (Windimurra 0.47% vanadium and Barambie 0.82% vanadium).
The current drillhole grades being observed in new drilling and previously observed in historical drilling compare extremely favourably in tonnage and grade with other high grade deposits globally.
Namely Largo Resource (TSX:LGO) (1.48% vanadium) and Bushveld Minerals (AIM:BMN) (1.4% vanadium).
Analysis
That **anintha with today's drill results ranks up there with Largo Resources (TSX:CVE) with its Maracás Menchen Mine, which has Inferred Resources of 30.4 million tonnes at 0.83% vanadium and a market cap of C$115 million (A$112 million).
Yellow Rock has a market cap of just $8 million, with a re-rating expected to come following these drilling results.
The company is leveraged to exploration success, and with results from another 53 holes over coming weeks, Proactive Investors does not expect the current $0.01 share price to remain this modest for long.
Additional upcoming catalysts include metallurgical testing and an updated resource estimation. Pit optimisation / mining studies will commence on receipt of all assay results.
AVL Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
(20min delay)