Yellow Rock Resources (ASX:YRR) is closer to drilling its high grade Gabanintha Vanadium Project in Western Australia towards development with a program scheduled to start in March.
The reverse circulation and diamond drilling is designed to provide an increased level of detail on a two kilometre section - about 16% of the current strike length - of the Gabanintha vanadium deposit.
This will provide samples for metallurgical testing and allow open pit optimisation studies and ore characterisation to begin.
The company is aiming to develop its vanadium resource to supply a high quality V2O5 flake product to the steel market and the emerging Vanadium Redox Battery (VRB) market.
Heritage Agreement
Yellow Rock has also signed a Heritage Agreement with the Yamatji Marlpa Aboriginal Corporation representing the Yugunga Nya people over the main Gabanintha lease and will conduct a heritage survey during March.
Mining Lease
The Company is applying for a key Mining Lease to cover the Gabanintha Vanadium Deposit.
The ML application will be supported by a Mineralisation Report and Supporting Statement to substantiate the reasons for mine development.
This will be submitted to the Department of Mines and Petroleum before the end of March.
Yellow Rock Resources chairman Brian Davis said: "It is pleasing to see that the Gabanintha development schedule is on track and that we are on our first steps on the path to production.
"With all the prerequisites nearing completion for the 60-hole drilling program, we look forward to exciting drilling results from the high-grade V-Fe-Ti mineralization and compiling an upgraded resource soon thereafter."
Drilling Plans
The contract to carry out 5,400 metres of reverse circulation and 900 metres of diamond drilling has been awarded to McKay Drilling.
Field crews and contract geologists have been engaged and are preparing to mobilise for the drilling program.
This program is designed to provide an increased level of detail on a two kilometre section of the Gabanintha vanadium deposit, representing approximately 16% of the current resource strike length.
The program will provide samples for metallurgical testing and allow open pit optimisation studies and ore characterisation to begin.
Metallurgical Studies
Yellow Rock has awarded the initial metallurgical testing and plant studies work to Battery Limits Pty Ltd.
The proposed work will commence when suitable samples are obtained during the drilling program.
Tests include crushing and grinding tests, analysis of recoveries from oxide, transition and fresh mineralised materials using gravity and magnetic separation techniques and confirmation of suitable process plant options.
The metallurgical test program will provide key processing and recovery information which is essential to the development of an updated concept study and preliminary economic assessments.
Environmental Study
Biologic Environmental Pty Ltd has completed the Stage 1 Environment Survey and Desktop Study.
A zoologist and a botanist travelled to site and conducted the field work component of the study, recording fauna and flora sightings and establishing the nature of the ecological communities present on the leases.
The results of this work along with the formal report based on all field and desktop research is expected to be completed and reported on by the end of March.
Marketing
Yellow Rock has re-launched its marketing strategy with an updated web site, and social media presence.
It now has a new logo and website.
The company is aiming to develop its vanadium resource to supply a high quality V2O5 flake product to the steel market and the emerging Vanadium Redox Battery (VRB) market.
Vanadium Market Developments
Yellow Rock has initiated a series of high level studies and is actively engaging with key players in the Vanadium Redox Battery market.
Research by the company indicates that rapid acceleration in the development of renewable energy projects on a global scale is being accompanied by rapidly growing interest in the emergence of grid storage technologies.
One of the strongly emerging technologies is the Vanadium Redox Flow Battery (VRB).
The uptake of VRB technology along with other grid storage technologies could have a significant effect on the Vanadium (V2O5) market as the use of V2O5 electrolyte is a large component (50% of current cost) of the battery units.
The unique characteristics of VRB's, specifically their scalability, long lifespan cycles and the use of one battery element, make them a strong candidate to earn up to 30% of the growing energy storage market, which is expected to grow from a current 0.4GW to 40GW in just the next 7 years.
Yellow Rock is actively seeking to link the use of its products to the rise of this globally significant use Vanadium Battery technology.
Analysis
Yellow Rock Resources is on the road to re-commence drilling at the Gabanintha Vanadium Project in March which will in turn lead to an upgraded JORC resource.
The company has also applied for a Mining Lease over the deposit.
Development of the project is on track and the company is on the first steps towards production.
There are some significant share price catalysts ahead for investors in Yellow Rock:
- Drilling and results from the current program;
- Upgrade JORC Resources at Gabanintha;
- Increase geological definition of the resources including understanding of the oxide, transitional and fresh zones at Gabanintha;
- Progress on the Mining Lease application; and
- Engaging with key players in the rapidly developing Vanadium Redox Battery Market.
Under the new experienced CEO Vince Algar, Yellow Rock has been effectively re-set as it readies for an extremely active program ahead at Gabanintha in 2015.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.