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King River Resources Ltd

King River Resources remains focused on world-class Speewah vanadium development

Snapshot

The company is progressing a pre-feasibility study which will help determine the best commercialisation strategy for development of the Speewah Specialty Metals Project.

Speewah rocks

Quick facts: King River Resources Ltd

Price: $0.04

Market: ASX
Market Cap: $46.2 m
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  • High purity alumina (HPA) product of 99.9% was produced in May at the Speewah Specialty Metals Project from sulphuric leach solutions
  • The Speewah resource has been measured by independent resource consultancy CSA at 4.7 billion tonnes, assaying an average of 0.3% vanadium, 2% titanium, and 14.7% iron.
  • The best commercialisation strategy is being formulated for development of the project
  • The company was recently granted an additional exploration licence at its Mt Remarkable project
  • Field programs started in May with drilling planned for the September quarter of 2019 at Mt Remarkable

What does King River do?

King River Resources Ltd (ASX:KRR) is progressing development of its global scale and class vanadium resource at the Speewah Specialty Metals (SSM) Project in the east Kimberley region of Western Australia.

As the company transforms from exploration to development, its objective is to delineate a development scenario and process route for SSM with respect to achieving the highest market value from a suite of in-demand products.

It also aims to tighten exploration costs to focus only on areas with compelling geological models supported by positive exploration results.

The company recently produced HPA assaying of more than 99.99% aluminium oxide from metallurgical precipitation test work at SSM.

It is investigating both vat leach of lump material and agitated tank leach of concentrates using sulphuric acid.

Other targeted high value speciality commodities such as magnesium oxide and vanadyl sulphate will be examined with a prefeasibility study underway.

In addition, the company is also exploring for gold, silver and copper at the Mt Remarkable Project 200 kilometres southwest of Kununurra, which comprises more than 3,000 square kilometres of exploration leases under application.

Chairman Anthony Barton has been involved in founding and growing several successful listed public companies with extensive knowledge in capital markets, corporate finance, funds management and venture capital.

Barton is the founding executive chairman of boutique investment bank Australia Heritage Group and has 34 years’ commercial experience having acted in senior executive and director capacities for two leading stockbroking firms.

What does King River own?

The company owns the Speewah project, which has evolved over the last decade to a world-class deposit with respect to strongly supported development.

SSM is the largest vanadium-in-magnetite deposit in Australia with the highest vanadium grade in magnetite concentrate.

The vanadium deposits comprise a measured, indicated and inferred mineral resource of 4.712 billion tonnes at 0.3% V205, 2% titanium and 14.7% iron.

King River owns 785 square kilometres of mineral leases covering a unique geological feature in the eastern Kimberley of WA called the Speewah Dome.

On completion of the PFS later in 2019 the company plans to use the technical and financial information to identify partners in jointly funding a definitive feasibility study (DFS).

The DFS will include scaled up pilot plant programs, alternative production scale scenarios and pre-development applications.

A 31-hole reverse circulation drilling program at the Junction prospect near to existing vanadium resources has begun with samples sent to the assay laboratory and to be reported on in due course.

Additionally, in 2015 King River identified the presence of high-grade gold, silver and copper at what is now the Mt Remarkable project in the east Kimberley region of WA.

These surface discoveries of up to 4 metres at 113.26 g/t gold including 1 metre at 346 g/t led geologists to establish a new geological model and apply contemporary tools and methodology for exploration work.

The next phase of drilling will test the Trudi Main, Trudi East Extension, Trudi Main Deeper, new veins and targets generated by 2019 reconnaissance activities.

Inflection points

  • The company plans to spend a total of $1.1 million this quarter with $450,000 allocated to the scoping study and PFS work
  • King River expects some of its application licenses to be granted this year opening exploration opportunities for new high-grade gold deposits
  • On completion of the PFS later in 2019 the company plans to identify partners in jointly funding a definitive feasibility study (DFS)

Identifying commercialisation strategy

The board is pleased with the progress of the SSM PFS and is formulating the best commercialisation strategy for development of the project.

After the both the PFS and DFS is completed, the study partners will jointly share ownership of all technical information surrounding the project and will have earned an option to acquire a majority direct equity in the project by providing future funding. 

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