Bankable Feasibility Study for the Australian Vanadium Project

Feasibility Study results reflect the Australian Vanadium Project’s value as a critical and battery mineral project and provides a strong commercial case for development.

• AVL’s Bankable Feasibility Study (BFS) confirms the Australian Vanadium Project as a potential globally significant primary vanadium producer targeting critical mineral, steel and energy storage
• Australian Government grant of A$49M awarded under the Modern Manufacturing Initiative Collaboration Stream[1] to support the Project to production.
• Technical studies completed, including three years of extensive piloting testwork, supporting robust processing flowsheets, de-risking the Project towards funding and delivery.
• Pre-tax NPV_7.5 of A$833M and equity IRR 20.6% based on US$10.50/lb V₂O₅ price, A$604M upfront pre-production capital excluding contingency.
• Updated Ore Reserve of 30.9Mt at 1.09% V₂O₅ comprised of a Proved Reserve of 5Mt at 1.11% V₂O₅ (vanadium pentoxide) and a Probable Reserve of 20.4Mt at 1.07% V₂O₅[2].
• Anticipated initial mine life of 25 years, supporting a long-life, consistent ore feed operation on AVL’s granted mining lease.
• Strategic separation of processing plant from minesite and concentrator allows access to competitive natural gas near Geraldton, local workforce and Iron Titanium (FeTi) coproduct sales opportunities through the Port of Geraldton.
• Average annual vanadium production of 7 Mlbs V₂O₅ (11,200t) as a 99.5% V₂O₅ high purity flake and 900,000 dry tonnes per annum of FeTi coproduct.
• Forecast vanadium recovery to concentrate of 72% life of mine, supported by pilot testing and comparable to current international primary vanadium operations.
• Innovative process flowsheet recovers 90% of vanadium in concentrate, utilising tried-and-tested grate kiln technology, with valuable reductions in gas consumption and CO₂
• Approvals well advanced and Environmental, Social and Governance (ESG) standards and action plans in place.
• Global critical mineral vanadium market seeing strong growth in demand and pricing (currently over US$12/lb V₂O₅) with the battery sector showing accelerated uptake in vanadium redox flow batteries.

[1] See ASX announcement dated 16^th March 2022 ‘AVL Awarded $49 Million Federal Government Manufacturing Collaboration Grant’

[2] Rounding is applied