Communicators

HIGHLIGHTS

-         Conventional reduction roasting and magnetic separation of gravity concentrates generates ilmenite for titanium pigment and a vanadium-rich magnetite for specialty steel production at high recoveries

-         Large scale concentrate products meet commercial specifications for both ilmenite and magnetite products

-         High quality ilmenite suitable for both chloride and sulphate pigment production, maximising marketability

-         Samples of gravity concentrates in transit to IMUMR in China for flowsheet validation and generation of concentrates to advance potential offtake discussions

-         Commenced early contractor engagement for a mining and gravity concentrate operation on site.

Innovative project development company, Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce excellent results from beneficiation test-work which has generated further concentrate samples for scale up validation work in China.

The largest-scale test work program was conducted on three bulk samples (20 tonnes) of Barrambie Eastern band (high titanium zone) mineralised material which generated 11 tonnes of heavy mineral concentrate (containing titanium, vanadium and iron) from traditional gravity spirals used by the mineral sands industry.  Low-temperature reduction roasting and subsequent magnetic separation produced a high quality ilmenite (> 52 % TiO2 content) at high recoveries (> 87% TiO2 recovery) and mass yield of 60%, and a marketable magnetite by-product concentrate (with grades equivalent to 58.7% Fe and 1.58% V2O5).

Historically, Neometals has evaluated the production of either vanadium or titanium in isolation using different flowsheets. Vanadium and titanium are industrial minerals which require significant proof of value-in-use when negotiating with potential off-takers. The Barrambie development strategy seeks to realise value from both the titanium and vanadium in the deposit via the generation of clean multi-metal concentrates from an initial capital-light mining and beneficiation operation for export to end-users.  The reductive roast-magnetic separation work is a breakthrough for the Company as we can with confidence produce two separate products that achieved market ready specifications, with high mass pulls towards the potential higher value ilmenite product.

Neometals’ Chinese partner, IMUMR*, is due to take delivery of a 1 tonne sample of the mixed concentrate material to allow replication of the Neometals reductive roast results and further downstream processing of the products. Validation of Australian test-work results using Chinese laboratories is standard practice in China and will support ongoing product offtake dialogues.

Neometals’ Managing Director Chris Reed commented:

“These test work results are a breakthrough in simplifying the development concept for Barrambie. Proving that a simple gravity concentrate can be roasted and separated into two high quality concentrates is ab significant step forward in realising our goal of developing Barrambie with strong partners. We are attracting strong interest from potential off-take partners and we look forward to continuing to work with IMUMR on advancing the project.”

*Institute of Multipurpose Utilization of Mineral Resources Chinese Academy of Geological Sciences (“IMUMR”). MOU was executed 4th October 2019 (see Neometals ASX announcement titled “Development Agreement for Barrambie” defining a co-funded evaluation pathway towards a 50:50 joint venture to develop Barrambie.

Background

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 (see image below).  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 1 Location of Barrambie Project

Test-work technical details

The Barrambie mineralisation contains high-grade ilmenite intergrown with a vanadium-bearing magnetite (iron) and, as demonstrated, the Neometals planned process flowsheet can produce a superior concentrate with high recoveries. The Barrambie development strategy revolves around extracting value from both the titanium and vanadium in the deposit. The high-level schematic flowsheet for this processing option involving mining, gravity beneficiation, reductive calcination and magnetic beneficiation into an ilmenite (TiO2 concentrate) and an Fe-V concentrate is shown in Figure 2. 

Beneficiation test work, including scaled up beneficiation on three bulk samples (20 tonnes of mineralised feed) of Barrambie Eastern mineralised material have found both gravity and magnetic beneficiation options work exceptionally well to produce a high-grade mixed concentrate.  A gravity circuit based on spirals was found to give a slightly improved grade for TiO2 and V2O5 grades and an improved recovery for TiO2 to the concentrate.  Overall mass pull to concentrate was typically around 58% with recoveries of TiO2 and V2O5 to gravity concentrate of around 77% and 63% respectively

Bench scale reductive calcination test work has previously been shown to produce a material susceptible to magnetic fractionation, enabling the production of a TiO2-rich concentrate and an iron-vanadium concentrate. Recent confirmatory test work has been performed at larger scale (22 kg) using syngas as the reductant in a fluidized bed contactor for reductive calcination and magnetic separation processing stages. Encouragingly mass pull and value metal deportment to product concentrate streams are improved over earlier test work outcomes. The flowsheet and overall mass pull to each fraction along with the elemental composition of these streams is depicted in Figure 3. 

Figure 2  - Schematic of potential flowsheet

The combined non-magnetic streams produce an ilmenite (TiO2 concentrate) with 52.02% TiO2, 0.40% V2O5 , 46.95% Fe2O3, 1.00% Al2O3 and 1.99% SiO2.  The recovery of titanium to the TiO2 concentrate is over 87% from concentrate feed. Due to the quality of the Barrambie ore and the deportment of other impurities these are low in both the TiO2 and Fe-V concentrates (See Table 1).  Similarly, the Fe-V concentrate produced with this flowsheet has both a high vanadium grade (1.58% V2O5) and high iron grade (84.20% Fe2O3), The recovery of iron and vanadium to the Fe-V concentrate are 49% and 67% respectively from concentrate feed.

Table 1 – Chemical composition data for Barrambie Concentrate, Ilmenite and Fe-V Concentrate

Figure 3  - Low Temperature Reductive Calcination and Beneficiation Flowsheet and Mass Balance and Stream Composition

Next Steps

Given the extensive geological, metallurgical and evaluation study data on Barrambie and management preference for capital-light build-own-operate-transfer arrangements, it is progressing discussions with specialist mining and processing contractors under an early contractor involvement model.  In parallel management is progressing discussions with potential offtake parties for both the ilmenite and magnetite products in China.

Authorised on behalf of Neometals by Christopher Reed, Managing Director

ENDS

For further information, please contact:

Chris Reed

Managing Director

Neometals Ltd

E: info@neometals.com.au

T: +61 8 9322 1182

Jeremy Mcmanus

General Manager - Commercial and IR

Neometals Ltd

E: jmcmanus@neometals.com.au

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 four core projects with large partners that span the battery value chain:

Recycling and Resource Recovery:

-          Lithium-ion Battery Recycling – a proprietary process for recovering cobalt and other valuable materials from spent and scrap lithium batteries. Pilot plant testing completed with plans well advanced to conduct demonstration scale trials with 50:50 JV partner SMS group, working towards a development decision in early 2022; and

-          Vanadium Recovery – sole funding the evaluation of a potential 50:50 joint venture with Critical Metals Ltd to recover vanadium from processing by-products (“Slag”) from leading Scandinavian Steel maker SSAB. Underpinned by a 10-year Slag supply agreement, a decision to develop sustainable European production of high-purity vanadium pentoxide is targeted for December 2022.

Downstream Advanced Materials:

-          Lithium Refinery Project – evaluating the development of India’s first lithium refinery to supply the battery cathode industry with potential 50:50 JV partner Manikaran Power, underpinned by a binding life-of-mine annual offtake option for 57,000 tonnes per annum of Mt Marion 6% spodumene concentrate, working towards a development decision in 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 mid-2021 with potential 50:50 JV partner IMUMR.

COMPETENT PERSONS ATTRIBUTION

Exploration and Sampling

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Mr Gregory Hudson, who is a member of the Australian Institute of Geoscientists.  Mr Hudson is a full-time employee of Neometals Ltd and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.  Mr Hudson has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.

Metallurgy

The information in this report that relates to metallurgical test work results is based on, and fairly represents, information compiled and / or reviewed by Dr David Robinson, who is a Member of The Australasian Institute of Mining and Metallurgy.

Dr Robinson is a full-time employee of Neometals Ltd and has sufficient experience relevant to the activity which he is undertaking, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Robinson has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.

COMPLIANCE STATEMENT

The information in this report that relates to Mineral Resource Estimates Barrambie Titanium Project are extracted from the ASX Announcement entitled “Updated Barrambie Mineral Resource Estimate” lodged 17 April 2018.  The Company confirms that it is not aware of any new information or data that materially affects the information included on the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the market announcement continue to apply and have not materially changed.  The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified form the original market announcement.