JOHANNESBURG (miningweekly.com) – Australian resources company TNG has concluded the initial scoping study of its Mount Peake vanadium project, in the Northern Territory, and was now undertaking optimisation work on the study to assess project viability.

The initial study considered the viability of an open pit mining operation study using a marginal cut-off of 0,22 % vanadium pentoxide (V₂O₅) conservative V₂O₅ price of $8/lb, and processing of five-million tons a year, with an estimated capital cost of between A$400-millin and A$500-million.

Despite the high capital cost the results demonstrated viable project economics given the parameters and assumptions of this initial study, TNG said in a statement.

The capital cost has been estimated based on information supplied by METS, which is undertaking the metallurgical test work. This work is ongoing and the final processing route not yet been established.

“TNG is encouraged by the results of the initial scoping study, particularly as this optimisation has been based on TNG’s maiden inferred mineral resource of 107-million tons at a grade of 0,32% V₂O₅, 5,9% titanium dioxide, 29% iron, estimated from its first round of drilling on the project,” the company said.

A significant portion of the Mount Peake magnetic anomaly remains untested and offers the potential to increase the initial resource and further enhance the project’s economics.

“The board of TNG is pleased with the results and will now consider the optimum route to progress the Mount Peake project to the next phase, including the possibility of introducing a joint venture partner to fund ongoing resource drilling and project feasibility work.”