[Ferro-Alloys.com] 39% INCREASE IN HIGH GRADE MEASURED AND INDICATED MINERAL RESOURCE

 Resource update confirms Australian Vanadium Project as a Tier-1 high grade vanadium deposit

KEY POINTS

? Updated Mineral Resource Estimate (‘MRE’) consolidating the AVL and TMT projects into one project on the contiguous orebody.

? Increase in MRE for high grade (‘HG’) domain in Measured and Indicated categories by 39% on previous estimates.

? Global vanadium MRE for combined project is 395.4Mt at 0.77% V2O5 of which 61% of updated HG domain is now classified as Measured or Indicated.

? Vanadium MRE for HG domain is 173.2Mt at 1.09% V2O5 including 105.4Mt at 1.12% V2O5 classified as Measured or Indicated.

? Updated MRE of combined project underpins ongoing work on the Optimised Feasibility Study (‘OFS’), targeting improved early mine life cash flow derived from 1.6% V2O5 and 60% Fe concentrate grades.

Australian Vanadium Limited (ASX: AVL, ‘the Company’ or ‘AVL’) is pleased to announce an updated Mineral Resource Estimate (‘MRE’) for its vanadium project near Meekatharra, Western Australia (see Figure 1). This resource update continues to build on AVL’s aspirations to be the next primary producer of high purity vanadium underpinned by a quality, long life, Tier-1 asset.

On 1 February 2024, AVL completed its merger with Technology Metals Australia Limited (‘TMT’), integrating AVL and TMT’s two projects into the combined Australian Vanadium Project (‘Project’),1 located on one contiguous vanadium orebody with a unified 18km strike length. AVL has commenced work on an OFS focused on realising the potential economic benefits of the merger. As part of the ongoing OFS work, AVL assessed the high-grade areas of the orebody, previously straddling the two projects, which shows 1.6% vanadium pentoxide (V2O5) and 60% iron (Fe) concentrate grades.2

This updated MRE consolidated AVL and TMT’s previous MREs3 and includes additional reverse circulation drilling, diamond core drilling and down hole density data conducted during 2022. The updated MRE also unifies the model domaining and interpretation at the Project, a necessary step to progress the OFS.

On the resource update, AVL’s CEO, Graham Arvidson, comments:

“AVL is pleased to provide this updated MRE for the Project with significant improvements in resource category. We are particularly pleased with the significant 39% increase in classification within the HG domain of the deposit.

“This MRE update strengthens our conviction that we will be able to define a ‘stronger for longer’ project capable of producing high grades of vanadium and iron in the magnetic concentrate with positive economic implications. Increased accuracy of the MRE from additional drilling by AVL during 2022, coupled with consolidation of the MRE over the whole deposit will be pivotal in moving the Optimised Feasibility Study forward, targeting improved early mine-life cash flow.

“AVL continues to make great progress on project development activities and approvals towards mining and vanadium oxide production while also continuing to hit key milestones in the production of electrolyte suitable for vanadium flow batteries at our electrolyte facility. The advanced stage of our Project positions us well as use of vanadium in batteries continues to grow exponentially.”

AVL is progressing the Project at a key time in global markets for vanadium, with growth in the vanadium flow battery (‘VFB’) market expected to continue its rapid growth.

The Project is supported by a well-defined Mineral Resource base with the updated MRE encompassing the previous MREs for Blocks 15 to 70 of the former AVL project,4 and the Gabanintha North and Yarrabubba (now Block 80) deposits of the former TMT project.5 The Company has updated the Measured, Indicated and Inferred MRE contained within a massive magnetite high-grade domain (‘HG domain’ or ‘HG’) and overlying low-grade (‘LG’) disseminated magnetite domains for a total of 395.4 million tonnes (‘Mt’) at 0.77% V2O5.

This updated estimate includes a 107% increase in the Indicated category HG within southern Blocks 50 to 70. Also included is a Maiden Measured category mineral resource of 7.8Mt at 1.16% V2O5 within Blocks 50 to 62 in the HG, significantly improving the category of resources in those blocks to that previously reported in November 2021.4 Table 1 includes an updated MRE table for the Project and Appendix 2 includes a table of the MRE by the major blocks, plus in a separate table by oxidation, a key criterion for recovery through magnetic separation beneficiation.

The MRE includes a vanadium-bearing massive magnetite HG domain. The Measured, Indicated and Inferred MRE for this HG domain is 173.2Mt at 1.09% V2O5, which includes:

? Measured: 30.6Mt at 1.13% V2O5;

? Indicated: 74.8Mt at 1.11% V2O5; and

? Inferred: 67.9Mt at 1.06% V2O5.

• [Editor:tianyawei]