American Vanadium has completed a feasibility study on its Gibellini vanadium project located in Eureka County, Nevada, US.

The feasibility study, prepared by AMEC E&C Services, has reported an after tax cash flow of $275.7m, an internal rate of return of 43%, net present value of $170.1m at a 7% discount rate and a 2.4 year payback on investment from start-up.

The project has a capital cost of $95.5m including $10.7m contingency, with an operating cost of $4.10 per pound of vanadium (V2O5).

The mining operating rate of the project is 3.5 million tons a year, with average V2O5 recovery at 65.9% and average annual production of 11.4 million pounds V2O5.

American Vanadium president and CEO Bill Radvak said the firm will move forward with finalising the plan of operations for review and comment by both the Bureau of Land Management and the State of Nevada.