Neometals Ltd.: Barrambie - Pilot Plant and Offtake Updat
HIGHLIGHTS
- Neometals has successfully commissioned its pilot plant and commenced production of a titanium-rich gravity concentrate sample for offtake evaluation trials;
- Approximately 150 tonnes of gravity concentrates will be produced and shipped in Q1 2022 with the majority going to titanium slag producer Jiuxing for commercial scale trials as part of their offtake evaluation process;
- Pre-feasibility studies are on schedule for completion in Q1 2022; and
- Jiuxing commercial smelting trials scheduled for completion Q2 2022 to advance negotiations for formal offtake agreements which are a prerequisite for any future investment decision.
Innovative project development company, Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to provide an update on its 100% owned Barrambie Titanium and Vanadium Project (“Barrambie”). The Company, in conjunction with its consultants Allied Mineral Laboratories, Primero Group and Roxbury Trading Pty Ltd have successfully commissioned a gravity beneficiation plant at Menzies in Western Australia to generate bulk concentrate samples for evaluation by potential Chinese offtake counterparties.
Neometals has a memorandum of understanding with Jiuxing Titanium Materials (Liaonging) Co. Ltd (“Jiuxing MoU”) (“Jiuxing”) (for full details refer to ASX announcement entitled “Barrambie - MOU for Cornerstone Concentrate Offtake” released on 16th April 2021). The Jiuxing MoU outlines the technical and commercial pathway to a formal, binding take-or-pay offtake agreement, with Neometals supplying approximately 100 tonnes of mixed gravity concentrate for evaluation trials using Jiuxing’s commercial titanium smelter (“Offtake Trials”). The Offtake Trials represent the final stage of Jiuxing Barrambie offtake due diligence.
Neometals excavated through costean mineralization to enable the production of approximately 150 tonnes of mixed gravity concentrate bulk sample for Jiuxing and other potential offtakers. Contract crushing and grinding of the mined material is largely complete, and the gravity (spirals) circuit has been commissioned. The bulk gravity concentrates sample is expected to be dispatched to China prior to the end of Q1 2022.
Jiuxing is a leading chloride-grade titanium slag producer, located in north-eastern China it produces approximately 12% of the total Chinese chloride slag supply. Jiuxing has been operating since 2008 and is the strategic partner and feedstock supplier to leading chloride titanium pigment producers including CITIC Titanium Industry Co., Ltd and titanium metal/alloy producer China BaoTi Huashen Titanium Industry Co., Ltd.
Jiuxing and Neometals have extended the term of the Jiuxing MOU and key milestone dates to reflect a more conservative and achievable timeline and are targeting execution of binding formal offtake agreements in October 2022. In parallel, evaluation activities are focussed on the completion of an Association for the Advancement of Cost Engineering (“AACE”) Class 4 Preliminary Feasibility Study which is on schedule for completion in Q1 2022. These studies will provide a basis for the evaluation and negotiation of proposals for a complete mine-to-port solution under a ‘build-own-operate’ style arrangement for a mining and gravity concentration operation at Barrambie for export out of Geraldton. This model was used successfully in the development by Neometals and its partners to develop the Mt Marion Lithium Project in 2015.
Figure 1 – Indicative Barrambie Project Timeline
Figure 2 – Location of the Barrambie Project.
Barrambie is the most advanced, undeveloped hard-rock titanium Mineral Resource in Australia, located adjacent to existing transport infrastructure giving access to open user port facilities. Additionally, Barrambie has a granted Mining Proposal for a 1.2 Mtpa mining operation and Ministerial Approval for construction of a processing plant with a throughput of 3.2Mtpa.
Figure 3 – Overview of the Beneficiation Plant.
Crushed Barrambie mineralisation is de-slimed and gravity beneficiated through rougher and middling spirals (see Figure 3) to produce a mixed gravity concentrate (see Figure 4).
Figure 4 – First Product from Gravity Beneficiation Plant – mixed mineral concentrate
Authorised on behalf of Neometals by Christopher Reed, Managing Director
ENDS
For further information, please contact:
Chris Reed
Managing Director
Neometals Ltd
T: +61 8 9322 1182
Jeremy Mcmanus
General Manager - Commercial and IR
Neometals Ltd
T: +61 8 9322 1182
About Neometals Ltd
Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. With a focus on the energy storage megatrend, the strategy focuses on de-risking and developing long life projects with strong partners and integrating down the value chain to increase margins and return value to shareholders.
Neometals has three core projects that support the global transition to clean energy and span the battery value chain:
Recycling and Resource Recovery:
- Lithium-ion Battery Recycling – commercialising a proprietary process for recovering nickel, cobalt and other valuable materials from spent and scrap lithium batteries. In a 50:50 incorporates JV with SMS group called Primobius GmbH. Targeting commencement of commercial operations in 10tpd plant in Germany in the MarQ 22 and a development decision on larger 50tpd plant in July 2022; and
- Vanadium Recovery – sole funding evaluation studies to form a 50:50 joint venture with Critical Metals Ltd to recover high-purity vanadium pentoxide from processing by-products (“Slag”) from leading Scandinavian steelmaker SSAB. Underpinned by a 10-year Slag supply agreement, Neometals is targeting an investment decision to develop a 200,000tpa processing plant in DecQ 2022.
Upstream Industrial Minerals:
- Barrambie Titanium and Vanadium Project - one of the world's highest-grade hard-rock titanium-vanadium deposits, working towards a development decision in 2022 with potential operating JV partner IMUMR and potential cornerstone product off-taker, Jiuxing Titanium Materials Co.
