Sparton Resources’ subsidiary VStar Industries has signed a memorandum of understanding (MoU) for the advanced evaluation and possible acquisition of a 70% interest in the Yao Wan (YW) polymetallic exploration licence in the Zhen’an area of Shaanxi Province, China.
The agreement for the 16km² licence was signed with Warwick Mining Development Company (WMD).
Under the MoU, VStar is required to provide funding for the expenditures related to advanced exploration and evaluation up to the point of a China compliant feasibility study suitable and accepted for application for a vanadium mining licence at Yao Wan.
Thereafter, funding for further development of a mining operation would be met by V Star and WMD on 70:30 basis.
In a statement, Sparton Resourcessaid: “The Vanadium mineralisation is strata-bound and similar to other ‘stone coal’ carbonaceous shale type vanadium deposits in China.
“In this particular area, host rocks have been weakly metamorphosed and both the vanadium horizon and host wall rocks appear more competent than those in other areas evaluated by the company subsidiaries.”
Between 2006 and 2015, WMD completed work including surface and underground core drilling, surface trenching, and tunnelling at the YW licence.
According to the company, six vanadium zones have been identified along an 11km strike length within a 9km² section of the licence.
Based on historical estimates under Chinese categories 332 and 333, the six zones contain a total of 37,280,900t of vanadium mineralisation, grading an average of 0.85% V2O5.
The zones are estimated to contain 316,096t of V2O5.