vanadium concept study high purity vanadium … · next steps to initially trial selective...

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

ASX:KRC - EXPLORING NEW HORIZONS 2

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


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.

LOCATION OF VANADIUM RESOURCES


HIGH GRADE CONCENTRATE


❖ 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


❖ 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)

ASX:KRC - EXPLORING NEW HORIZONS

PROJECT LOCATIONS IN WA

7

• 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


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


• 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


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


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


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


• 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


MINERAL RESOURCE ESTIMATES


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


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.

THANK YOU


vanadium concept study high purity vanadium … · next steps to initially trial selective...

Documents