Technology Metals Followers Await Imminent Release Of Gabanintha DFS

Investors and analysts will run a keen eye over the company’s feasibility study reporting tomorrow.

Technology Metals Australia Ltd - Technology Metals followers await imminent release of Gabanintha DFS
  • The Gabanintha Vanadium Project DFS is due tomorrow
  • A reserve update is expected with the DFS
  • Next steps for the company will become clear after the release of the study

What does Technology Metals do?

Technology Metals Australia Ltd (ASX:TMT) (FRA:TN6) is a Western Australian vanadium company that expects to publish a definitive feasibility study (DFS) for its flagship project tomorrow morning.

The Subiaco-based project explorer and developer is led by managing director Ian Prentice, a geologist with more than 30 years’ experience in the mining industry.

Prentice is a founding executive director of Technology Metals and has served as a director for a number of Australian-listed exploration and production companies operating in Australia and Africa.

What does Technology Metals own?

Gabanintha Vanadium Project in WA is the company’s key asset, with its long-awaited DFS a key milestone for the company.

A maiden reserve of 16.7 million tonnes at 0.96% vanadium pentoxide (V2O5) will be updated in the feasibility study.

Technology Metals has previously expressed its hope to become the fourth primary vanadium mines globally with Gabanintha project.

The project is among the world’s highest grade high-purity large-scale vanadium deposits with its large resource.

Gabanintha resource was estimated as 131 million tonnes grading 0.9% vanadia by May 2019.

TMT has achieved a five-nines vanadium oxide product with a purity of more than 99.999% during metallurgical testing of product from the project.

The company released its pre-feasibility (PFS) for Gabanintha project in June 2018, valuing the project at $1.28 billion at a net present value (NPV10) calculated at a 10% discount.

Gabanintha PFS internal rate of return was 55% while its mine life was estimated at 13-years, with a 3.4-year payback.

Technology Metals’ earlier Gabanintha study was based on about 21 million tonnes of its much larger resource.

A production-take memorandum of understanding for the project in May 2019 was another milestone for TMT at Gabanintha.

China Nonferrous Metal Mining Groupsubsidiary CNMC Ningxia Orient Group Company Ltd had agreed to take a share of production from vanadium ore mined at the project.

Under the agreement, CNMNC could buy 2,000 tonnes a year of vanadium pentoxide over an initial 3-year period.

The company’s Gabanintha DFS is expected for release to the investment community by market open tomorrow.

Inflection points

  • DFS release
  • Financing milestones
  • Significant transactions
  • Notable partnering activity
  • Shareholder support