Hardey Resources de-risks Queensland vanadium projects

Published at Aug 13, 2018, in Small Caps

Hardey Resources (ASX:HDY) has revealed preliminary findings from its pre-acquisition due diligence on Vanadium Mining’s (VanMin) four Queensland projects — Sharptooth, Spike, Cera and Petrie.

Encouragingly, these findings confirm that all four projects are situated within an enriched vanadium mineralised zone, with considerable exploration upside. They also suggest potential for modelling a JORC (2012)-compliant Inferred vanadium Resource.

This is a key positive at this early stage of the due diligence review, materially de-risking the four Queensland projects.

Within each project area are significant occurrences of the Toolebuc Formation, which is an oil shale highly prospective for vanadium mineralisation and secondary oil-bearing potential. Common to all four projects is outcropping and below surface occurrences of the Toolebuc Formation.

Notably, the Toolebuc Formation has a shallow, favourable dip and occurs from surface to 5 metres below. Typically, the Toolebuc Formation’s thickness below surface averages 12 metres but this can reach 25 metres in places.

Historic surface sampling and drill-hole assay results within the region confirm this finding. Moreover, HDY’s peers, Intermin Resources (ASX:IRC) and Liontown Resources (ASX:LTR), have confirmed Resources along strike that align with the Sharptooth Project and within the Toolebuc Formation.

Notably, illustrating the extent of mineralisation, IRC has reported a JORC (2012)-compliant total resource for its Richmond Project of 2,579Mt at 0.32% vanadium oxide (0.29% cut-off), while LTR has announced a maiden Inferred Resource of 83.7Mt at 0.30% vanadium oxide (0.29% cut-off).

The Sharptooth Project has five historical drill-holes with vanadium oxide assay values up to 0.32% — this exceeds LTR’s average grade but is in line with IRC’s reading.

Of course, as with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

The Sharptooth Project’s location in relation to nearby peers:

There are some 170 air-core drill-holes, averaging 30 metres in depth, across the north-south trending Spike, Cera and Petrie Projects (completed in 2010), which have a combined 150 kilometre strike length, with widespread elevated vanadium oxide assay results.

Importantly, the Cera Project has numerous intercepts exhibiting elevated assay results up to 0.58% vanadium oxide.

Having assessed these Queensland projects holistically, HDY’s geology team believes there is adequate historic drilling and sampling data to potentially geologically model a JORC (2012)-compliant Inferred Resource.

This brings HDY one step closer to its aim to emerge as a vanadium supplier to the renewable energy sector.

Moving forward, HDY’s focus will be expanding the area of historic drill-hole interpretation to extrapolate the data across the projects, which have a strike length of 150 kilometres, with the aim of defining an exploration target.

HDY will complete further work to ascertain if a JORC-compliant Resource can be determined from historic data — the company will then progress due diligence on its Northern Territory assets.

Spike, Cera and Petrie projects, with vanadium oxide grades

HDY Executive Chairman, Terence Clee, said that these early due diligence findings are “highly encouraging” — especially the confirmed prevalence of the Toolebuc Formation across the projects.

“More significantly, the Board is delighted with the prospect of being able to model a JORC compliant inferred vanadium pentoxide resource, as this materially de-risks this Queensland projects,” said Clee.

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