Aura Energy (ASX: AEE) reported a technical review and corporate work was progressing for its upcoming initial public offering for its spin-out Häggån Vanadium, as it plans test work at the Häggån project’s huge 13.1 billion pound vanadium resource.
The Victorian company intends to maintain a 78-80% stake in the battery metals spin-out once it is floated on the ASX.
As featured in Small Caps’ guide to vanadium stocks on the ASX, Aura’s polymetallic Häggån deposit in central Sweden is one of the largest undeveloped vanadium polymetallic projects in the world.
Today, the company said the project’s 13.1 billion pound inferred vanadium resource meant it was clear Häggån had the potential to be one of the world’s largest suppliers of vanadium.
“The recent dramatic rise in the price of vanadium has altered the principal focus for the Häggån project development, which is now mainly vanadium and other battery metals with lower emphasis on uranium. The Häggån deposit contains consistent mineralisation and has been well drilled,” Aura executive chairman Peter Reeve said.
“Aura will conduct a review of this significant database of vanadium mineralisation to identify the domains of highest-grade material in the deposit.”
The company highlighted the fact its vanadium grades were 18 times higher than its uranium grades at the project.
“With the vanadium grade of 0.28% vanadium pentoxide at a 100 parts per million triuranium octoxide cut-off and 0.33% vanadium pentoxide at a 180ppm triuranium octoxide cut-off grade, the vanadium grade is at least 18 times higher concentration than uranium highlighting the new relative importance of the vanadium in the resource and future project,” Aura stated.
Of the 3,041 resource samples reviewed, 20% had grades higher than 0.4% vanadium pentoxide.
Prices for the metal, which is used in high-strength specialty steel alloys, have been tracking upwards as investors find beauty in the battery ingredient’s promise in emerging clean energy sectors.
The ferro vanadium price added about US$13.20 per kilogram to US$35.20/kg in the 12 months to 31 January 2018.
Today the vanadium pentoxide-flake price for 98% purity held firm at US$15.1 per pound in China and US$15.65/lb in Europe.
Aura’s securities gained 33.3% to A$0.028 by late afternoon on volumes of more than 118 million shares traded.