Critical Minerals Group Reaches Pre-Feasibility Milestone at Lindfield Vanadium Project

Critical Minerals Group (ASX: CMG) has completed a pre-feasibility study (PFS) that supports advancing its integrated Lindfield vanadium project towards a definitive feasibility study (DFS).

The preferred development combines a 3 million tonnes per annum open cut mine near Julia Creek in Queensland with a Vanadium Electrolyte (VE) manufacturing facility at Parkes in New South Wales.

The PFS returned a pre-tax net present value (NPV) of $821 million and a pre-tax internal rate of return (IRR) of 26.6% for the preferred 3Mtpa case.

Critical is targeting a final investment decision in calendar 2027, subject to funding, approvals, offtake and completion of further technical work.

Lower Entry Point

The preferred pathway would commission the VE facility ahead of the Lindfield mine using third-party vanadium pentoxide (V₂O₅) feedstock, bringing forward targeted first revenue to 2028 and reducing peak funding exposure.

The PFS estimated a total capital cost of $981m, a peak funding requirement of $736m, a seven-year payback period, and a 31-year mine life.

Average annual V₂O₅ production is forecast at 10,577t during years one to 16, while the post-tax NPV was assessed at $458m and the post-tax IRR at 18%.

The project is underpinned by a mineral resource estimate (MRE) of 713 million tonnes (Mt) at 0.32% V₂O₅, comprising 491Mt in the Indicated category and 222Mt in the Inferred category, although no ore reserve has been declared pending further DFS drilling.

Three Priority Workstreams

Critical has identified three priority workstreams covering a metallurgical pilot plant program, long-term supply arrangements for sulphuric acid and sodium hydroxide, and government concessional finance alongside binding offtake negotiations.

The pilot plant work is intended to confirm or improve vanadium recovery and support consistent production of at least 99.5% purity V₂O₅, with reagent costs identified as a significant processing expense.

Planning over the next six months will extend across geology, metallurgy, engineering, approvals, and procurement.

It will include preparations for the next Lindfield drilling program and additional bench-scale and pilot-scale testing.

The company is also assessing demand for vanadium flow battery applications and is discussing VE offtake that could support battery installations associated with data centre developments.

Funding Position Reinforced

Critical Minerals Group secured commitments for a two-tranche placement to raise $1.5m before costs, with $1.13m received during the quarter and a further $369,000 subject to shareholder approval at a General Meeting on 12 August.

Cash and cash equivalents stood at $823,000 at 30 June after exploration and evaluation expenditure of $522,000 and net operating cash outflows of $539,000 during the quarter.

Available funding was estimated at 0.8 quarters based on relevant quarterly outgoings of $1.061m, with the company planning to continue exploring capital options while progressing its near-term development objectives.

Further work will include government funding engagement, product qualification, and offtake negotiations as the company continues discussions with regulators, landholders, local government, and suppliers.