- Technology Metals (TMT) extends the mine life of its Murchison Technology Metals project (MTMP) to 25 years following an integration study for the project
- The study has merged the Yarrabbuba deposit into the MTMP mine plan and grown its ore reserves by 69 per cent while delivering a maiden Yarrabbuba ilmenite ore reserve
- With the addition of ilmenite, the MTMP has two revenue streams, further de-risking the development of the project
- Following an economic evaluation, Technology Metals is pursuing the implementation phase and expects to reach a development decision by the end of 2022
- TMT shares are down 8.86 per cent to trade at 36 cents at 2:35 pm AEST
Technology Metals (TMT) has completed an integration study for the Murchison Technology Metals project (MTMP) in Meekatharra, Western Australia.
The MTMP comprises the Gabanintha and Yarrabubba projects, which are set to be long-term, low-cost producers of vanadium and titanium by-products.
The study merged the high-grade Yarrabubba deposit into the MTMP mine plan.
Through the study, TMT increased the Yarrabubba ore reserves by 69 per cent to 15.88 million tonnes at 0.87 per cent vanadium pentoxide and 10.03 titanium dioxide.
This takes the MTMP’s global ore reserve estimate to 44.48 million tonnes at 0.89 per cent vanadium pentoxide.
The updated Yarrabubba ore reserve included a maiden ilmenite (tiO2) ore reserve estimate of 15.88 million tonnes at 10.03 per cent ilmenite, which reportedly delivers an additional revenue stream for the project.
The expanded ore reserve estimate extends the potential MTMP mine life to 25 years, with the dual revenue streams of vanadium and ilmenite further de-risking the development of the MTMP.
Technology Metals said it expected to produce an average of around 12,500 tonnes of vanadium pentoxide per annum from the project, and the majority of the ilmenite would be produced in the first nine years of the operation.
Managing Director Ian Prentice said the updated Yarrabubba Ore Reserve “significantly boosts” the MTMP with the addition of the maiden ilmenite ore reserve estimate and mine life extension.
“The ilmenite production is expected to deliver a significant revenue stream to the MTMP, particularly in the initial 10 years, further derisking the development of the project,” Mr Prentice said.
TZ Minerals International (TZMI) completed a product and customer assessment program for the ilmenite, and potential customers confirmed the product was suitable for use as a blend feed in their sulphate pigment processes.
TZMI also estimated that the planned Yarrabubba ilmenite would achieve a price of between US$250 and $270 (A$359 and A$531) per tonne FOB in the current spot market.
Technology Metals said the economic evaluation suggested the integrated MTMP met the investment criteria for the company to pursue the implementation phase.
“Activities now being advanced, including the commercial tendering process to update the economics of the project, are expected to optimise the MTMP and lead to a development decision, which is expected by the end of 2022,” Mr Prentice said.
TMT shares were down 8.86 per cent to trade at 36 cents at 2:35 pm AEST.