Vanadium Miners News For The Month Of October 2018

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Includes: AMVMF, APAFF, ATVVF, AUEEF, BSHVF, CCC, CCCCF, GLCNF, LGORF, MTTGF, MVT, PCY, PNTZF, PRPCF, RDRUY, RRSSF, SRHYY, SYAAF, UUUU, VDMRF, WSTRF
by: Matt Bohlsen

Summary

Vanadium China spot prices rise dramatically from ~USD 20/lb to above USD 33/lb.

Vanadium market news - "Vanadium is the new super-metal."

Vanadium company news - Australian Vanadium Gabanintha PFS resulted in a NPV8% of US$1.1B.

Welcome to Vanadium miners news. October saw vanadium China spot prices rise over 50% from USD 20.80/lb to USD 33.10/lb. Vanadium prices have now risen over five fold in the past two years.

Vanadium uses

Vanadium is traditionally used to harden steel. However Vanadium flow batteries (VRFBs) are becoming increasingly popular especially for commercial energy storage, most notably in China.

Vanadium oxide spot price history

China Vanadium Pentoxide [V2O5] Flake 98% Price - USD 33.10/lb

Source: Vanadiumprice.com

Vanadium demand versus supply

Some interesting charts below to help explain the boom in vanadium prices over the past two years.

Source: Australian Vanadium presentation

Vanadium demand forecast to outstrip supply 2018-2025

Source: Largo Resources Investor presentation

Vanadium market news

In 2017 Robert Friedland stated:

We think there’s a revolution coming in vanadium redox flow batteries,” he says. "You’ll have to get into the mining business and produce ultra-pure vanadium electrolyte for those batteries on a massive scale. We’re very deeply interested in how you store electrical energy in the grid. The beauty of the vanadium redox battery is that you can charge and discharge it at the same time, something that can’t be done with a lithium battery. With a vanadium redox flow battery, you can put solar power and wind power into the battery, and you can put excess grid power into the battery at night, and at the same time you can have a stable output into the grid.

On October 10 Oil Price.com reported:

Move aside lithium – Vanadium is the new super metal. The lithium ride was a great one. Cobalt, too. All they needed was their Elon Musk moment, which came in the form of the Nevada battery Gigafactory (NASDAQ:TSLA). The next Elon Musk moment won’t be about lithium at all—or even cobalt. It will be for an element that takes everything electric to its revolutionary finish line: Vanadium.

On October 19 MiningNews.net reported:

Vanadium-oil hopeful dips on debut. A vanadium and kerogen shale oil project might have seemed an outside bet for a successful initial public offer, but the soaring price of the metal was enough to raise A$5 million and get QEM to list on the Australian Securities Exchange. After two prospectuses and two supplementary updates the company completed the issue of 25 million 20c shares and will now accelerate exploration of the Toolebuc Shale within its Julia Creek project. It has an inferred resource of 1.7 billion tonnes grading 0.34% vanadium pentoxide and a 3C contingent resource of 589 million barrels of oil shale.

Vanadium miner news

Vanadium producers

Glencore [LSX:GLEN] [HK:805] (OTC:OTCPK:GLCNF)

Glencore is a large vanadium producer, but vanadium production represents only a small portion of their revenue.

On October 26 Glencore announced: "Third quarter 2018 production report." The table below summarizes, but there is no vanadium published there.

Glencore Q3 2018 production results compared

Source

AMG Advanced Metallurgical Group NV [NA:AMG] [GR:ADG] (OTCPK:AMVMF)

AMG Vanadium is a leading provider of products and services for the metals, manufacturing, refinery and petrochemical industries. AMG Vanadium produces ferrovanadium and related ferroalloys from spent refinery catalysts using a proprietary pyrometallurgical process.

On October 16 AMG announced:

AMG Advanced Metallurgical Group N.V. completes feasibility study to expand spent catalyst processing capacity. AMG Advanced Metallurgical Group N.V. is pleased to announce that AMG Vanadium has completed the feasibility study to replicate its existing Cambridge, Ohio, recycling facility. The AMG Management Board has approved the commencement of engineering work for the twin facility, and several potential locations within the operational vicinity of AMG Vanadium's existing plant are under final consideration. Once completed, the new facility will more than double AMG Vanadium's spent catalyst processing capability.

You can view the latest investor presentation here.

Bushveld Minerals Limited [LN- AIM:BMN] (OTC:BSHVF)

Bushveld is a diversified AIM-listed resources company with a portfolio of vanadium, tin and coal assets in Southern Africa and Madagascar. Bushveld Minerals 100% owns Bushveld Vametco Limited which has a controlling interest of 75% in an existing low-cost production platform, Vametco Alloys, with ~3.5% of global market share. Quality brownfield processing infrastructure in close proximity to Bushveld deposits.

On October 26 Bushveld tweeted: "Bushveld Minerals Ltd. intends allocating as much as $170 million over the next three years expanding its capacity to produce and process vanadium." Bushveld also released an update on their Lemur subsidiary (coal and energy), which you can read here.

You can view the latest investor presentation here.

Energy Fuels Inc. [TSX:EFR] (UUUU)

Energy Fuels state they are "the No. 1 uranium producer in the U.S. with a market-leading portfolio." Regarding vanadium the company states they have "32M lbs M&I vanadium resources at La Sal & Whirlwind Mines (1% avg. grade)." In 2013 the company produced 1.5M lbs of V2O5, and due to the price recovery they are resuming vanadium production in 2018.

On September 27 Energy Fuels Inc. announced:

Energy Fuels commencing vanadium production; testing new approaches to mining in tight vanadium market. Energy Fuels Inc. is pleased to announce that the Company expects to resume vanadium production at its 100% owned White Mesa Mill (the “Mill”) in mid-November 2018, producing significant quantities of salable V2O5 product by the end of December 2018. When production begins, Energy Fuels will be the newest vanadium producer in the World and the only primary producer of V2O5 in North America. In addition, the Company is currently preparing to conduct a test-mining program that selectively targets high-grade V2O5 resources at its 100%-owned La Sal Complex of uranium/vanadium mines in Utah, with the goal of significantly increasing productivity and mined grades and reducing mining costs per pound of V2O5 and U3O8 recovered.

On October 25 Energy Fuels announced:

Energy Fuels announces initial results of test-mining program targeting vanadium at La Sal Complex; update on recent positive federal actions. As previously announced, the Company has commenced a limited conventional vanadium mining program at its 100% owned and fully permitted and constructed La Sal Complex of uranium/vanadium mines in Utah. The purpose of the test-mining program is to evaluate different approaches that selectively target high-grade vanadium zones, thereby potentially increasing productivity and mined grades for vanadium and decreasing mining costs per pound of V2O5 and U3O8 recovered. After three weeks of test mining and evaluation, the Company is discovering areas of high-grade vanadium mineralization that were not previously mined due to the relatively lower uranium grades in the material.

You can view the latest investor presentation here.

Largo Resources [TSX:LGO] [GR:LR81] (OTC:OTCQB:LGORF)

Largo Resources is a pure-play vanadium pentoxide producer from their Maracás Menchen mine in Brazil. The company states: "The Maracás Menchen mine possesses the world's highest grade vanadium deposit - P&P reserve grade of 1.17% V2O5 is over double the industry average. On track to be one of the lowest cost producers of vanadium, and a 6 year take or pay off-take agreement with Glencore for 100% of production."

On October 3 Largo Resources announced:

Largo Resources announces record Q3 production results and new president and COO. Record production of 2,563 tonnes of V2O5 in Q3 2018, a 4% increase over Q2 2018. Record overall V2O5 recovery rate of 82.2% achieved during the month of September. Total production in Q3 2018 was 6% above plant's nameplate capacity.

On October 11 Largo Resources announced:

In accordance with standard practice, INEMA published confirmation of the renewal of our operating license for the Maracas Menchen Mine (the "Licença de Operação" or "L.O.") on October 5, 2018. The renewed L.O. is valid for a period of 2 years and may then be further extended within 6 months of the L.O.'s new expiry date for an additional 2-5 years period. Vanadium prices continue to surpass decade high averages with the latest European Metal Bulletin price range for V2O5 posted during the week of October 5, 2018 being US$22.25-$23.00/lb. As announced in February (see press release dated February 12, 2018), the enforcement of China's new rebar standard and the central government's special action to cut down "substandard steels" comes into effect next month which, in the Company's view, should add further pressure to the vanadium market.

You can view the latest investor presentation here.

Vanadium developers

Neometals [ASX:NMT] (OTCPK:RDRUY) (OTCPK:RRSSF)

Neometals is primarily a lithium producer however they 100% own the Barrambie Titanium Vanadium Iron Project in Western Australia. Barrambie's Eastern Band is one of the highest grade hard rock titanium deposits globally.

On September 27 Neometals announced:

Neometals strengthens board ahead of demerger. Neometals Ltd is pleased to announce the appointment of highly‐experienced directors, Dr Jennifer Purdie and Mr Leslie Guthrie, as Non‐Executives to the Neometals Board. Both Dr Purdie and Mr Guthrie are well‐credentialled professionals who bring extensive experience and skills to Neometals ahead of its plan to demerge the Barrambie Titanium‐Vanadium Project (“Barrambie”) into a new ASX‐listed company (“NewCo”) (refer to NMT ASX announcement dated 16th August 2018).

You can view the latest investor presentation here, or read "Neometals Managing Director Chris Reed talks with Matt Bohlsen of Trend Investing."

Australian Vanadium [ASX:AVL] [GR:JT71] (OTC:ATVVF)

Australian Vanadium is an emerging vanadium producer focused on the Gabanintha deposit in Western Australia.

On September 26 Australian Vanadium announced:

Gabanintha presents robust base case for Pre-Feasibility Study. The NPV is estimated at US$1.1B using a Life of Mine V2O5 commodity price forecast of US$13/lb. At current V2O5 market prices of US$20/lb, project NPV is US$2.4B, highlighting the project’s upside potential. At a US$8/lb V2O5 price, the NPV is US$191 M, indicating a robust project. 22.5Mlb V2O5 (10,100t) per annum over an initial mine life of 17 years. Average operating expenses estimated at US$4.13/lb V2O5 equivalent (±35%), competitive with the world’s lowest quartile producers. Capital costs of approximately US$360M (±35%). This includes owner’s costs, contingencies and gas pipeline investment.

Pre-Feasibility Study summary and sensitivities

Source

You can view the latest investor presentation here, or read "Australian Vanadium Managing Director Vincent Algar Talks With Matt Bohlsen Of Trend Investing."

Technology Metals Australia [ASX:TMT]

The company's primary exploration focus is on the 100% owned Gabanintha Vanadium Project located 40km south east of Meekatharra in the mid-west region of Western Australia.

On October 5 Technology Metals Australia announced: "Gabanintha stage 1 drilling completed." Highlights include:

  • "Stage 1 project enhancement drilling completed.
  • All resource infill and extension holes intersected broad zones of massive magnetite mineralisation.
  • Initial assay results from RC Drilling expected in mid to late October 2018."

Catalysts include a DFS by April 2019, and a possible 13ktpa producer by 2021. You can view the latest investor presentation here, or read "Technology Metals Australia Executive Director Ian Prentice Talks With Matt Bohlsen Of Trend Investing."

TNG Ltd [ASX:TNG] [GR:HJI] (TNGZF)

TNG is an Australian resources company focused on the evaluation and development of its Mount Peake Vanadium-Titanium-Iron project. The Mount Peake Project is located 235km north-northwest of Alice Springs in the Northern Territory of Australia. TNG Ltd is well advanced with a massive $4.7b NPV8%, but relies on titanium and iron with a lower grade vanadium by-product.

On October 11 TNG Ltd. announced:

TNG confirms execution of the landmark native title agreement for its Mount Peake vanadium-titanium iron mine. Major step towards securing grant of the Mineral Lease and the development of a major new resource project for Northern Australia....Both Northern Territory and Federal Government environmental assessments were finalized earlier this year.

You can view the latest investor presentation here.

Aura Energy [ASX:AEE] [GR:VU1] (OTC:AUEEF)

Aura Energy is an Australian-based minerals company that 100% owns polymetallic and uranium projects with large resources in Sweden (Häggån Project) and Mauritania (Tiris project). Aura’s focus is on the Häggån Project, located in Sweden’s Alum Shale Province, one of the largest depositories of vanadium in the world.

On October 17 Aura Energy announced: "Investigation initiated for recovery of vanadium at Tiris Uranium Project. Vanadium occurs in uranium host mineral carnotite. Vanadium extracted in leaching circuit with uranium."

On October 25 Aura Energy announced: "Häggån Vanadium Project study progressing well. Häggån capital and operating estimates complete. Vanadium price now at US$30.70/lb. Separate listing options remain active."

You can view the latest investor presentation here.

Prophecy Development Corp. [TSX:PCY] (OTCQX:PRPCF) (NYSEARCA:PCY)

Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock Exchange. Prophecy's objective is to advance the Gibellini Black Shale primary vanadium project in the Battle Mountain region in northeastern Nevada to production. Gibellini aims to be the first active primary vanadium mine in North America.

On October 2 Prophecy Development Corp. announced: "Prophecy signs Gibellini Memorandum of Agreement with the Bureau of Land Management."

On October 4 Prophecy Development Corp. announced: "Prophecy’s Form 20-F filing declared effective by SEC. Registering with the SEC is a prerequisite for listing equity securities on a national stock exchange in the United States."

On October 10 Prophecy Development Corp. announced: "Gerald Panneton appointed as Prophecy’s President and CEO."

On October 16 Prophecy Development Corp. announced: "Prophecy received US$100,000 of advance royalty payment from Ulaan Ovoo mine lease, Lessee eyeing mine start."

You can view the latest investor presentation here.

Tando Resources [ASX:TNO]

Tando Resources is a junior exploration company established with the purpose of exploring and developing gold zinc, lead, copper and other mineral opportunities. Tando signed a HoA to acquire 74% of a globally significant vanadium project, the SPD Project, in Gauteng Province, South Africa.

On October 12 Tando Resources announced: "High grade results from first assays at SPD Vanadium Project." Highlights include:

  • "First assay results received from VRC001: 7m at 0.84% V2O5 from 3m. 9m at 1.12% V2O5 from 73m incl. 2m at 1.61% V2O5 (within a wider interval of 35m at 0.66% V2O5 from 47m).
  • Drilling continues on site with three rigs currently operating.
  • Phase 1 anticipated to be completed by next week.
  • Drilling at the surrounding shallow vanadium pipes, which have the potential to host a low-cost DSO operation, set to start next week."

On October 18 Tando Resources announced: "SPD vanadium project update. All 16 holes in Phase One program intersect mineralised unit. Every hole contains visible magnetite, which is confirmed to host vanadium."

On October 25 Tando Resources announced: "More shallow, high-grade assays at SPD Vanadium Project. Latest results will form part of imminent maiden JORC Resource." The maiden JORC Resource is expected to be published next month.

You can view the latest investor presentation here.

King River Copper [ASX:KRC] [GR:34N] (OTCPK:KRCLF) (planning to change to King River Resources Limited)

King River holds 785 square kilometres of mineral leases covering a unique geological feature in the Eastern Kimberley of Western Australia, called the Speewah Dome. The company state on their website: "The focus of King River Copper Limited is the exploration for gold, silver and copper." However their deposits also contain vanadium.

On October 15 King River Copper announced:

Vanadium update. King River Copper Limited is pleased to provide this update on its 100% owned Vanadium-Titanium-Iron Project at Speewah, located in the East Kimberley of Western Australia. Vanadium Scoping Study due for release in October. Vanadium metallurgical testwork has continued on several fronts to identify the most optimum and commercially practical process routes to pursue.

On October 24 King River Copper announced: "Quarterly activities report 30 September 2018. TSW Analytical produced high purity Vanadium Pentoxide (99.51% V2O5)."

You can view the latest investor presentation here.

Syrah Resources [ASX:SYR] (OTC:OTCPK:SYAAF) (OTC:SRHYY)

Syrah Resources is primarily a graphite producer recently commencing graphite production from their massive Balama mine in Mozambique. The company also has discussed plans to produce vanadium.

On October 11 Syrah Resources announced: "Q3 2018 quarterly activities report." Highlights include:

  • Q3 production 38.7kt, up 83% versus Q2 with 71.1kt 9M YTD
  • BAM site purchase and environmental processes completed, major supply terms finalized.
  • Cash as at 30 September 2018 US$100.3 million (exclusive of Share Purchase Plan (SPP) proceeds).
  • Completed institutional Placement with gross proceeds of A$94 million (US$ 67.4 million).
  • SPP completed 9 October 2018, estimated total subscription ~A$9 million (US$6.4 million).
  • Q4 2018 net cash outflow forecast US$23.6 million (inclusive SPP proceeds and BAM capex)."

On October 22 Syrah Resources announced: "Syrah return to full production remains on track. Syrah Resources Limited provides an update on the Primary Classifier Unit (“Unit”) repair progress, with the schedule to return to full production remaining on track (refer to ASX announcement 4 October 2018)." There was a fire.

You can view the latest investor presentation here.

Triton Minerals [ASX:TON] [GR:1TG]

Triton Minerals plans to be a graphite producer with their flagship Ancuabe Graphite Project in Mozambique by H2 2019. They also have the Nicanda Hill project which the company states is the "world's largest graphite resource" and also contains plenty of vanadium. Their third graphite project is Nicanda West. Triton is primarily a graphite play, but with significant vanadium potential.

No news for the month.

You can view the latest investor presentation here.

Battery Minerals [ASX:BAT]

Battery Minerals is a multi-commodity battery materials provider focused on the development and integration of minerals critical to the battery market and energy storage sector. The company is maintaining a focus on its two graphite development assets Montepuez and Balama which are located in Mozambique, and also has vanadium.

On September 28 4-traders reported: "Battery Minerals hits construction milestones at Montepuez project. Australias Battery Minerals (ASX:BAT) said Thursday development of its $51-million Montepuez graphite project, in Mozambique, has achieved key construction milestones."

You can view the latest investor presentation here.

VanadiumCorp Resource Inc. [TSXV:VRB][GR:NWN] (OTCPK:APAFF)

VanadiumCorp Resources Inc. 100% owns the Lac Dore Vanadium-Iron-Titanium project in Quebec Canada. The company also has another smaller project known as the Iron-T Vanadium Project also in Quebec, and royalties on the Raglan Nickel-PGM mine. The company is looking to take a vertically integrated approach and are also developing leading process technologies ‘VanadiumCorp-Electrochem Processing Technology’ and "Electrochem globally patented Electrowinning" technology.

On October 23 VanadiumCorp Resources Inc. announced: "Vanadiumcorp warrant extensions."

You can view the latest investor presentation here.

BlackRock Metals (Private)

Established in 2008, BlackRock Metals is a privately-owned Canadian company developing a fully integrated, environmentally enhanced, metals and materials manufacturing business from its wholly-owned, world-class vanadium and titanium bearing magnetite (“VTM”) and ilmenite deposit in Quebec, Canada.

No news for the month.

First Vanadium Corp. (formerly Cornerstone Metals Inc.) (TSXV: CCC) (OTCQB:CCCCF)

Cornerstone’s Carlin Vanadium project hosts one of North America’s largest richest primary Vanadium deposits, located in Nevada. Its West Jerome project targets a large- scale, high-grade copper and zinc deposit in Arizona. Carlin has a historic Inferred Resource 28Mst at 0.525% V2O5 (2010 SRK).

On October 2 First Vanadium Corp. announced: "First Vanadium completes drilling at the Carlin Vanadium Project. First Vanadium Corp. is pleased to announce that it has completed the Phase 2 drilling program on its Carlin Vanadium Project, located 6 miles south of Carlin, Nevada."

On October 10 First Vanadium Corp. announced: "First Vanadium reports initial phase 2 drill results from its Carlin Vanadium Project. First Vanadium Corp. is pleased to announce the results from the first six of 69 reverse circulation drill holes from its Phase 2 drilling on the Carlin Vanadium Project, located six miles south of Carlin, Nevada. The objectives of this drill program were to infill and expand the Carlin Vanadium deposit."

news10

Source

Investors can read the latest company presentation here.

Other vanadium juniors

  • NextSource Materials [TSX:NEXT]
  • Cellcube Energy Storage [TSXV:CUBE] (STNUF) (formerly) Stina Resources
  • Golden Deeps [ASX:GED]
  • Sabre Resources [ASX:SBR]
  • Trigon Metals Inc. [TSXV:TM] (OTC:PNTZF)
  • Venus Metals [ASX:VMC]
  • Intermin Resources [ASX:IRC]
  • Vanadium One Energy Corp. [TSXV:VONE] [GR:9VR1] (OTC:VDMRF)
  • Mustang Resources [ASX:MUS] [GR:GGY] (OTCPK:MTTGF)
  • Protean Energy [ASX:POW] [GR:SHE1]
  • Maxtech Ventures (CSE:MVT)
  • Western Uranium and Vanadium Corp (OTCQX:WSTRF)

Conclusion

Vanadium spot prices skyrocketed in October, vanadium producers saw significant stock price gains, and vanadium juniors made strong progress.

Highlights for the month include:

  • Vanadium China spot prices rise dramatically from ~USD 20/lb to above USD 33/lb.
  • "Vanadium is the new super-metal."
  • Bushveld Minerals Ltd. intends allocating as much as $170 million over the next three years expanding its capacity to produce and process vanadium.
  • Largo Resources announces record Q3 production results.
  • Energy Fuels plans to recommence vanadium production in mid-November 2018.
  • Australian Vanadium Gabanintha PFS resulted in a NPV8% of US$1.1B, IRR 39.5%, and a CapEx of ~US$360M.
  • TNG confirms execution of the landmark native title agreement for its Mount Peake vanadium-titanium iron mine.

As usual all comments are welcome.

Disclosure: I am/we are long SYRAH RESOURCES [ASX:SYR], TRITON MINERALS [ASX:TON], NEOMETALS [ASX:NMT], LARGO RESOURCES [TSX:LGO], TECHNOLOGY METALS AUSTRALIA [ASX:TMT], AUSTRALIAN VANADIUM [ASX:AVL].

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information in this article is general in nature and should not be relied upon as personal financial advice.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.