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[Ferro-Alloys.com]：Australian Vanadium (ASX: AVL) has further de-risked its flagship namesake project in Western Australia after revealing today it has signed a letter of intent with China’s Hebei Yanshan Vanadium and Titanium Industry Technology Research Co Ltd.

A subsidiary of the world’s third largest vanadium producer HBIS Group Chengsteel, Yanshan Vanadium Titanium plans to negotiate and sign a binding technical services and purchase agreement for Australian Vanadium’s proposed products from the project.

As part of the initial agreement, Australian Vanadium will provide product samples to Yanshan Vanadium Titanium for testing, with specifications, price and volume to be determine through ongoing discussions.

Additionally, Australian Vanadium’s managing director Vincent Algar and chief operating officer Todd Richardson will travel to Chengde in Hebei to advance the negotiations.

“We were invited by Yanshan Vanadium Titanium to attend a conference in Hebei last year and to meet with the company,” Mr Algar explained.

“Discussions were productive and highlighted a desire by Yanshan Vanadium Titanium to become more involved in Australian Vanadium’s project.”

“We are now visiting Chengde this month to further these discussions and move towards a formal agreement,” Mr Algar added.

Australian Vanadium also pointed out that Yanshan Vanadium Titanium was “keen” assist with the processing design for the project, with Mr Richardson to engage in technical discussions regarding potential improvements that could result in cost reductions.

Australian Vanadium project

Australian Vanadium’s flagship project hosts one of the highest-grade vanadium resources under development worldwide.

The resource currently sits at 183.6 million tonnes at 0.76% vanadium pentoxide, including a high-grade zone of 96.7Mt at 1% vanadium pentoxide.

In addition to the resource, a reserve has been firmed up of 18.24Mt at 1.04% vanadium pentoxide.

The project’s importance to Australia was recognised in September this year, when the Australian Federal Government awarded it Major Project Status.

According to Australian Vanadium, the award of this status is formal recognition of the project’s capacity to contribute to economic growth and employment as well as acknowledging the value of its contribution to regional WA.

The status also affords Australian Vanadium a more streamlined approach to navigating regulatory hurdles.

Today’s news spurred Australian Vanadium’s share price up 20% to trade at $0.012 late morning.

• [Editor:tianyawei]