Yellow Rock Resources has appointed experienced mining executive Vincent Algar as chief executive officer to advance the high grade Gabanintha Vanadium Project in Western Australia.

The current CEO Lorry Hughes has resigned from the company after effectively establishing a growth strategy.

Vince Algar is a geologist with over 24 years’ experience in the mining industry spanning underground and open cut mining operations, as well as project development and mining services in Western Australia and Southern Africa.

Algar was managing director of Shaw River Manganese (ASX:SRR) from December 2006 – March 2012 and was responsible for successful capital raisings, which raised more than $40 million for the Company’s exploration and acquisition programs.

He was instrumental in the $20 million acquisition of a 75.5% stake in the Otjo Manganese Project in Namibia, in 2011, which is currently being brought into production.

Algar has worked on a wide range of commodities most recently in base metals, and uranium in Southern Africa as a consultant and analyst. His mining background, technical focus and ferro-metals experience will be used to good effect the project at Gabanintha is advanced in the coming months.

His appointment will be effective from the 19th November 2014.

Yellow Rock executive director, Leslie Ingraham said: “The Board is extremely pleased to be in a strong position to advance the Gabanintha Vanadium Project and the addition of Mr Algar to the team will help the Company achieve the next steps efficiently.

"His prior experience in resource consulting, listed Companies and with ferro-metals will be invaluable to help move the project towards feasibility."

Gabanintha Vanadium Project progress

The wholly-owned Gabanintha Vanadium Project is located in Western Australia’s Murchison District about 600 kilometres from the port of Geraldton and 200 kilometres from the Windimurra Vanadium Mine.

Gabanintha has one of the highest grade vanadium deposits in the world with an Indicated and Inferred Resource of 60.4 million tonnes grading 0.98% V2O5, 11.4% TiO2 and 42.15% iron.

It is also located just 40 kilometres form the mining town of Meekatharra.

In August, the company completed a concept engineering study (CES) that indicated that Gabanintha had significant production capability and competitive costs.

This included estimated C1 cash operating cost of A$7.26/kg vanadium pentoxide that could position Yellow Rock as a competitive open pit producer.

The estimated C1 cash operating cost compares favourably with the average operating cost of vanadium mining producers globally, which is estimated at A$9.72/kg.

Yellow Rock was looking to deliver a Pre-feasibility Study (PFS) by mid-2015 for Gabanintha.

The company is also well funded to complete exploration and development in the near term with $3.8 million in cash as at 30 September 2014.

Recent developments in vanadium redox battery technology for grid-scale energy storage coincide with improved vanadium demand fundamentals.

• [Editor:Sophie]