vanadium concept study high purity vanadium … · next steps to initially trial selective...
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ASX: KRC September 2017
NEW HORIZONS
Gold Copper and Silver Exploration in the Kimberley WA
and Tennant Creek NT
VANADIUM CONCEPT STUDY
High Purity Vanadium Pentoxide and Titanium
Dioxide for Vanadium Electrolyte Battery Market
CORPORATE OVERVIEW
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Board of Directors
Anthony Barton – Chairman
Greg MacMillan – Non-Executive Director
Leonid Charucky – Non-Executive Director
ASX code KRC
Share price (4 Sep 2017) $0.01
Issued shares 867.7 million
Listed Options 124.4 million
Unlisted Options 5.55 million
Market capitalisation ~ $9.0 million
Cash (30 June 2017) $716,000
Top Shareholders Interest
Anthony Barton & Associates 14.17%
Sesna Pty Ltd 5.20%
Lawrence Crowe Consulting Pty Ltd 2.77%
BNP Paribas Nominees Pty Ltd 2.57%
VANADIUM CONCEPT STUDY
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A Vanadium Concept Study is underway to investigate the potential of producing a high purity
vanadium pentoxide (V2O5) and titanium dioxide (TiO2) from the Central vanadium deposit at
Speewah (refer KRC ASX announcement 21 April 2017).
• The major objective being to identify the parameters to be applied towards a new Scoping Study
• The following activities have been completed:
❖ Vanadium resource estimate updated in accordance with JORC Code (2012) by CSA Global Pty Ltd
(refer KRC ASX announcement 26 May 2017).
• Measured, Indicated and Inferred Mineral Resource, reported at a 0.23% V2O5 cut-off grade from the
Central, Buckman and Red Hill deposits, comprises:
4,712 million tonnes at 0.3% V2O5, 2% Ti and 14.7% Fe
• Measured, Indicated and Inferred Mineral Resource, reported at a 0.23% V2O5 cut-off grade from the
high grade zone of the Central deposit, comprises:
520 million tonnes at 0.36% V2O5, 2% Ti and 14.8% Fe.
• This is the largest titanomagnetite vanadium resource in Australia.
❖ Metallurgical testwork by Nagrom (refer KRC ASC announcement 21 August 2017):
• A vanadiferous titano-magnetite concentrate was produced from the high grade zone of the Central
deposit.
• A concentrate assaying 2.15% V2O5, 12.72% TiO2 and 71.42% Fe2O3 was produced using the low
magnetic intensity separation (LIMS) technique. The V2O5 grade of the magnetite concentrate is
higher than other Australian vanadium deposits.
• Initial hydrometallurgical acid leaching tests on the magnetite concentrate obtained recoveries of up
to 99% Vanadium and 85% Titanium.
Next Steps will be trialing selective precipitation, solvent extraction and thermal hydrolysis methods to
precipitate vanadium pentoxide and titanium dioxide out of the pregnant acid solution.
HIGH GRADE CONCENTRATE
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❖ Vanadium occurs in magnetite disseminated in gabbro along with ilmenite which contains most of
the titanium.
❖ Magnetite and ilmenite are separated from the host gabbro by crushing and grinding to P80 45
microns (0.045mm) by the low intensity magnetic separation (LIMS) technique.
❖ Concentrate variability tests in the 3 deposits ranged from 2.15 to 2.64% V2O5 (mass yields up to
14.18% and up to 77.73% V recoveries). (KRC ASX announcements 1 April 2010 and 15 July 2010)
❖ In 2011 a 6 tonne RC sample batch produced a magnetite concentrate for hydrometallurgical
testwork assayed 2.37% V2O5 and 14.94% TiO2 (12.76% mass yield for 73.9% V recovery).
❖ In 2013 coarse crushing of core to 1mm followed by MIMS magnetic separation then grinding to
P80 75 microns and Davis Tube Wash produced a concentrate assaying 2.07% V2O5 and 16.12%
TiO2 (13.14% mass yield for 71.15% V recovery) (KRC ASX 21 April 2017). This method requires
further investigation as it may reduce costs to produce a magnetite-ilmenite concentrate.
HYDROMETALLURGICAL TESTWORK
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❖ Hydrometallurgical testwork commenced in 2017 aiming to produce high
purity vanadium pentoxide (V2O5) and titanium dioxide (TiO2) products.
o Initial HCl acid leaching of a magnetite concentrate reported:
• V recovery of up to 99.1%
• Ti recovery of up to 85%.
• Optimization tests are required to increase metal recoveries, shorten
leach times and reduce acid consumption.(refer KRC ASX announcement 21 August 2017)
❖ Next steps to initially trial selective precipitation, solvent extraction and
thermal hydrolysis methods to precipitate vanadium pentoxide and titanium
dioxide.
❖ Initial results expected late September 2017.
• Speewah Dome
• Flagship project area
• All granted tenements, including Mining
Leases
• 694 km2 in area
• 110 km SW of Kununurra
• Significant regional dome structure with
major regional faults (King River and
Pentecost)
• Mt Remarkable
• Recent acquisition, granted tenement
• 80 km south of Speewah
• Similar domal structure and regional
fault structures (Greenvale)
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PROJECT LOCATIONS IN WA
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• KRC plan of action is to test appropriate geological models, and apply
cost effective geochemical and geophysical field methods, and new
laboratory research techniques, to direct our drilling programmes.
• Minimising costs to maximise field activity
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EXPLORATION STRATEGY
8
Quad helicopter drone takes very high
resolution photographs for mapping and terrain
Tornado XRF element mapping and
isotope studies of diamond coreHigh resolution ground
magnetometer surveysHand-held XRF analyser
RC drill chips showing quartz vein intervalPetrographic, mineralogy and SEM studies
RC drill rig
MT REMARKABLE
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• Significant historical drill
intersections in the Trudi Vein:
• 5m @ 15.36g/t Gold (Au)
and 35g/t Silver (Ag),
including 1m @ 35.55g/t Au
and 41.8g/t Ag
• 4m @ 15.1g/t Au including
1m @ 57.2g/t Au
(KRC ASX announcement 5 April 2016)
• Initial field surveys completed
over main drilled areas:
• Ground magnetometer
• Rock chip sampling
• Maximum 30.8g/t Au rock
sample located about 700m
NW of previous high grade
intersections
• Further ground magnetic and
rock chip sampling
programmes planned
• Reverse circulation drill
programme planned in coming
month
(KRC ASX announcement 30 August 2017)
Targeting high grade gold-silver-copper
quartz ± adularia epithermal veins
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GEOLOGICAL MODELS
10
Iron Oxide Copper Gold
(IOCG) Model Tennant
Creek
Source: Large 1991
IOCG alteration at Bartons
• Priority drill targets
• Gold-Arsenic Quartz Chlorite Veins in Shears• New discovery of gold-bearing arsenic quartz chlorite veins in both
multiple E-W flat dipping thrusts and N-S vertical shears associated
with gold-base metal epithermal quartz veins, dolerite dykes and
chloritic shears
• Chapman Thrust – targets at intersections with NS structures,
bends, changes in lithology:
• Chapman – high grade gold-silver-antimony-copper-arsenic in outcrop
• Y Junction - 11m @ 0.56g/t Au with arsenic drill intersection
• Chapman West - 1m @ 9g/t Au drill intersection
• Bartons West - 8.3g/t Au surface sample with arsenic
• Hidden Valley - 0.66g/t Au surface sample with arsenic
• Catto and Greys Thrusts - high grade silver-gold-copper in shallow
dipping EW quartz veins near N-S structures
• Bartons Trend – possible IOCG association• 8km Main Zone along northern Pentecost Fault Zone, including 1m
@ 0.35g/t Au in quartz veined silica-hematite-muscovite alteration
• Planned deep diamond core hole across Bartons Shear Zone into
coincident magnetic-gravity high and Chapman Thrust at depth
• Other drill targets• Windsor - King River Fault Zone - copper including 200m @ 0.12% Cu
• Splays-Horseshoe-Central North trend – N-S Central Fault Zone
(copper silver gold) and E-W gold-arsenic-chlorite vein association
• Copper Cliff - EW and NS gold-copper trends (including 21g/t Au in
surface sample)
• JoeFisher - copper breccia (copper, silver), VTEM conductors, soil
anomalies in Antrim Plateau Volcanics
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PRIORITY DRILL TARGETS AT SPEEWAH
11
• New discovery of gold-bearing arsenic-
chlorite quartz veins (yellow lines) in both
flat dipping and sub-vertical structures
• More of the flat dipping veins are found
throughout the Speewah Dome (Vaux,
Bartons West, Hidden Valley, Gap, Catto,
Haydens, Greys, Calamondah, Splays)
• More of the N-S trending structures with
quartz-adularia also have arsenic-chlorite
quartz veins
• Numerous new targets to drill, especially
on intersections, bends, rock changes
• High grade gold rock chips at Chapman
and 1m @ 9g/t Au intersection at
Chapman West are part of this system
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CHAPMAN-BARTONS TARGETS
12
Landsat TM image in the Chapman-Bartons area of the northern Speewah Dome
Arsenic quartz chlorite vein
TENNANT CREEK COPPER GOLD
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• 12 Exploration
Licences applications
• Treasure Creek Pty
Ltd - wholly owned
subsidiary of KRC
• 6,634 km2
• Tennant Creek
copper-gold belt NT
• Prospective for
Tennant Creek/Rover
Style Iron Oxide
Copper Gold
deposits (IOCG)
Refer KRC ASX announcement 8
August 2017.
Q3 2017
Initial vanadium metallurgical test work completed and reported on
21 August 2017.
Mt Remarkable ground magnetic and rock sampling surveys
completed and reported on 30 August 2017.
Follow up vanadium metallurgy underway and to be reported.
Q4 2017
Mt Remarkable RC drilling pending Programme of Works approval,
track up-grade and fund raising.
Speewah Phase 2 RC/DC drill hole pending fund raising.
Follow up vanadium metallurgy planned.
Q1 2018 Vanadium Scoping Study underway
INDICATIVE PROJECT TIMINGS
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MINERAL RESOURCE ESTIMATES
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FLUORITE
VANADIUM-TITANIUMNote: Vanadium Resources estimated under JORC 2012
Note: Fluorite Resources
estimated under JORC 2004Massive fluorite core
Zone JORC Classification Tonnage (Mt) V (%) V2O5 (%) Fe (%) Ti (%)
High Grade
Measured 181 0.21 0.37 15.1 2.1
Indicated 404 0.20 0.35 15.0 2.0
Inferred 1,139 0.19 0.34 14.9 2.0
Total High Grade 1,725 0.20 0.35 15.0 2.0
Low Grade
Measured 141 0.15 0.27 14.6 2.0
Indicated 650 0.15 0.27 14.5 1.9
Inferred 2,196 0.15 0.27 14.4 1.9
Total Low Grade 2,987 0.15 0.27 14.5 1.9
Combined Zones
Measured 322 0.18 0.32 14.9 2.0
Indicated 1,054 0.18 0.33 14.9 2.0
Inferred 3,335 0.16 0.29 14.6 2.0
Grand Total 4,712 0.17 0.30 14.7 2.0
Zone JORC Classification Tonnage (Mt) V (%) V2O5 (%) Fe (%) Ti (%)
High Grade
Measured 139 0.21 0.37 15.1 2.1
Indicated 135 0.21 0.37 14.8 2.0
Inferred 247 0.20 0.36 14.7 2.0
Total High Grade 520 0.20 0.36 14.8 2.0
Low Grade
Measured 91 0.15 0.26 14.6 2.0
Indicated 167 0.15 0.27 14.8 2.0
Inferred 462 0.15 0.27 14.3 1.9
Total Low Grade 720 0.15 0.27 14.5 2.0
Combined Zones
Measured 230 0.18 0.33 14.9 2.0
Indicated 301 0.17 0.31 14.8 2.0
Inferred 709 0.17 0.30 14.5 2.0
Grand Total 1,240 0.17 0.31 14.6 2.0
Table 2: Speewah Project Global Mineral Resource estimate
(0.23% V2O5 cut-off grade)
Table 3: Central Mineral Resource estimate
0.23% V2O5 cut-off grade
Table 1: Fluorite Mineral Resource estimate
(10% CaF2 cut-off grade)
IMPORTANT NOTICES
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Note 1: Competent Persons Statement
The information in this report that relates to Exploration, Mineral Resources and Metallurgical Results is based on
information compiled by Ken Rogers and Andrew Chapman and fairly represents this information. Mr. Rogers is
the Chief Geologist and an employee of King River Copper Ltd and a Member of the Australian Institute of
Geoscientists (AIG) and a Member of The Institute of Materials Minerals and Mining (IMMM). Mr. Chapman is a
Consulting Geologist contracted with the Company. Mr. Rogers has sufficient experience of relevance to the
styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify
as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Rogers and Mr. Chapman
consent to the inclusion in this report of the matters based on information in the form and context in which it
appears.
Note 2: Resource Statements
The information in this Report that relates to Mineral Resources is based on previous KRC ASX announcements:
The Fluorite Resources reported in Table1 in the previous slide has been sourced from a Resource Estimate
Report which was last reported in KRC ASX announcement dated 25 August 2009. This information was
prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC
Code 2012 on the basis that the information has not materially changed since it was last reported. KRC confirms
it is not aware of any new information or data that materially affects the resource information referenced in this
announcement.
The Vanadium Resources reported in Tables 2 and 3 in the previous slide has been sourced from a Resource
Estimate Report which was reported in KRC ASX announcement dated 26 May 2017. These Vanadium
Resources were estimated in terms of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’ (JORC Code 2012 Edition).
Note 3: This presentation contains forward looking statements concerning the projects owned by KRC. Statements
concerning mineral resources may also be deemed to be forward looking statements in that they involve
elements based on specific assumptions.
Forward looking statements are not statements of historical fact, and actual events or results may differ materially
from those described in the forward looking statements as a result of a variety of risks, uncertainties and other
factors. Forward looking statements are based on KRC’s beliefs, opinions and estimates as of the date they are
made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates
should change or reflect other future developments.