JORC Mineral Resource of 116.9Mt @ 0.39% V2O5 (61.8Mt @ 0.39% V2O5 Indicated and 55Mt @ 0.39% V2O5 Inferred) with less than 2% of the licence explored to date.
220km2 in the Skåne Province of Southern Sweden
Potential to host Europe’s largest vanadium deposit
The Skåne Project offers exposure to Vanadium and the battery metals sector with a deposit in the heart of Europe. Sweden has long history of mining together with a well-established process of law, beneficial economics and proximity to terminal markets.
The Skåne Vanadium Project is located on the southern-most tip of Sweden, about 1 hour’s drive from Malmö and 90 minutes’ drive from Copenhagen. The project is comprised of 11 granted licences totalling ~220km2.
Drilling at the Hörby in 2019 has estimated an indicated and inferred resource of 116.9Mt @ 0.39%V2O5 (1,005 million pounds of contained V2O5), with less than 2% of the project area explored.
The presence of unusually high concentrations of vanadium in the Dictyonema Formation in Skåne was first identified in 1940 when mining and production of V2O5 was conducted near to the hamlet of Flagabro. Vanadium is clay hosted and concentrated primarily by biological processes under basin-wide anoxic conditions.
Vanadium is amenable to recovery via Pressure Oxidation Leaching (POX), a closed circuit process which minimises environmental impact of metal production. ScandiVanadium is conducting Phase One testwork through a Swedish Mining Innovation funded project focussed on ore characterisation and POX testwork to develop a process flow sheet capable of environmentally acceptable recovery of vanadium from the Dictyonema Formation. This work is being undertaken in partnership with Research Institutes of Sweden (RISE), Processum and Clay Tech.
Initial testwork on the application of Pressure Oxygenation Leaching (POL) for extracting vanadium from shale at the Skåne Project was lower than expected and chemical analyses of the test results, together with a comparison of geological parameters, have resulted in the conclusion that the geological development in Skåne has led to the POL method not being very efficient.
Additional metallurgical studies are required to test different approaches to improve vanadium recovery.
The study resulted in a clearer understanding of the metallurgical reactions and constraints in extracting vanadium from the DSF. Specifically, that vanadium contained in the mineral chlorite and smectite, as well as on the surfaces of the mineral grains was able to be extracted, whereas vanadium contained within the mineral illite was not. This is because the clay mineral illite, which dominates the mineralogy in the DFS samples, is very stable under the test conditions used and that the chemical structure of the illite does not breakdown. The vanadium is therefore not able to be recovered using the POL method. The samples from the DSF proved to be very resistant to the selected POL metallurgical method and only a modest extraction of vanadium occurred of 30%, Table 1, Figure 1. However, it also became clear that vanadium that was extracted remained in solution and was not reabsorbed, which was a positive observation.
Data on the mineralogy of the DSF, the regional geological development and the impact of these factors on the extraction results have been compared with other relevant exploration projects globally and the conclusion is that there are successful shale vanadium projects with comparable geology. It is thus more a question of finding the right metallurgical extraction method that will optimize vanadium recovery at the Skåne project.
Sweden is an established and highly regarded mining jurisdiction, a member of the European Union and has excellent human capital and infrastructure. The 2017 Fraser Institute Policy Perception Index, rated Sweden as the 4th most attractive jurisdiction in the world on ease and certainty of conducting mining and exploration activities. Sweden has amongst the lowest mining royalties globally at 0.2% and a corporate income tax rate of 22%.