Intermin Resources surges higher on revealing world-class...

Intermin Resources surges higher on revealing world-class vanadium resource



13:45 20 Mar 2018
Richmond has the potential to become a major supplier of vanadium to the energy storage and steel markets.
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Joint venture with Chinese backed AXF Vanadium
Intermin Resources Limited’s (ASX:IRC) shares are trading about 24% higher intra-day after revealing an updated JORC resource for the Richmond Vanadium Project in central north Queensland.
The global inferred resource for Richmond totals 2.579 billion tonnes grading 0.32% vanadium pentoxide at a 0.29% cut-off grade, making it one of the largest vanadium deposits in the world.
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Intermin managing director Jon Price said: “With vanadium prices reaching 10-year highs on the back of tightening supply and surging demand in the grid-scale battery market, Richmond has the potential to become a major supplier of vanadium to the energy storage and steel markets.”
Resource amenable to low cost, open cut mining

The Richmond project is a joint venture with Chinese backed AXF Vanadium whereby AXF can earn up to a 75% interest by spending $6 million by 2021 inclusive of a feasibility study.
The project covers 1,520 square kilometres and is close to existing infrastructure including a gas pipeline, major highway and railway linked to Townsville Port.
The resource remains open in all directions and is amenable to low cost, open cut mining with the resource located within 15 metres of surface and hosted in a soft marine sediment
Intermin’s initial development focus is on the shallow higher grade Lilyvale deposit which has a 671 million tonne resource grading 0.35% vanadium pentoxide.
Vanadium prices are rising

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Vanadium pentoxide (98%) US$/pound price
Vanadium redox flow batteries are being increasingly used by the energy storage industry as a key component in the grid scale storage of solar and wind energy.
Currently, over 80% of the world’s vanadium production comes from China (55%) whether mined or as a by-product of steel making.
Recent changes in Chinese policy include the banning of imported metal slag containing vanadium and stricter environmental regulations on Chinese steel mills has seen a dramatic decline in production.
On the back of tightening supply and increased demand, vanadium prices have recently reached eight-year record highs.
Next Steps

With the release of the global resource, Intermin will now focus on the shallow higher grade Lilyvale prospect with work to include initial metallurgical test work on ore pre-treatment (due June quarter 2018) and infill drilling for a measured resource.
Price added: “The company looks forward to supporting AXF as the JV completes infill drilling and metallurgical test work to assess the most economic and efficient pathway to commercial production.”
READ: Intermin Resources begins major drill program in the Western Australian goldfields