Hardey seeks approvals to reopen Nelly Vanadium Mine
Hardey Resources Limited (ASX:HDY) today informed shareholders that it plans to move swiftly to secure the necessary regulatory approvals in order to bring Nelly Vanadium Mine (NVM) back into production as soon as possible.
One of the key reasons for acquiring Nelly Vanadium Mine (NVM), other than the significant potential upside as highlighted by SRK Consulting, is Argentina’s favourable regulations that enable a legacy mining right to be expedited for reactivation compared to other mining countries.
It typically takes three to five years to transform a greenfield project to a viable mining operation in Argentina, but when it comes to expediting the reactivation of a legacy mining right it can take less than 12-months.
To demonstrate HDY’s strategic imperative to re-open NVM, the company has sent a formal letter to the Director of San Luis’ Mining Department (SLMD) detailing the change of ownership and forward plans.
In addition, senior HDY representatives will be travelling to San Luis in early September to expedite the process to re-open NVM. During the visit they plan to meet the SLMD Director and key officials to establish a working rapport; set up a liaison office to manage ongoing activities directly with the SLMD, which includes exploration approval and accompanying Environmental Impact Assessment (EIA) the vendor already submitted; and fast-track the process to reactivate the mining right.
Once exploration approval is granted, the geology team can commence verifying the extent of mineralisation within NVM and bulk sample legacy stockpiles. This will involve quantifying the stockpiles’ mineral potential is the priority before prospective off-take partners undertake independent metallurgical testing.
Once the mining right reactivation is approved, then the stockpiles can potentially be monetised to facilitate generating early stage cashflow, while the technical team works on feasibility plans for optimal open pit mining operations, with forward planning to accommodate future underground mining operations.
Via the Nelly Vanadium Mine, HDY has the potential to jump-start vanadium pentoxide production faster relative to peers with predominantly greenfield assets.
However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.
Next steps post-exploration permit and mining right approval
HDY Executive Chairman, Terence Clee commented: “The Board’s immediate core objective is to capitalise on Argentina’s comparatively favourable mining laws to expedite re-opening Nelly Vanadium Mine. Our initial goal, pending the mining right being granted, is approval of the exploration permit. This will enable the geology team to commence work verifying the extent of vanadium mineralisation and potentially monetising the historic stockpiles.”