RES
TSX-V:VLX
YEAR 24
KEYMILESTONES
Dual listing, resource growth high on Velox’s agenda
Velox Energy Materials (TSX-V:VLX) is gearing up for a transformative2025,markedbyplansforaduallistingand advancementsatitsflagshipNorthQueenslandVanadium Project(NQVP).
2024 has been a year of preparation for Velox as it works towards expanding its resource base, strengthening its portfolio, and listing on the Australian Securities Exchange (ASX)
The NQVP, situated approximately 500km southwest of Townsville in Australia’s North West Minerals Province, has beenthefocalpointofVelox’sactivitiesthisyear
The region, an emerging major critical minerals hub, has proventobeanideallocationforvanadiumexploration
Velox’s efforts have included detailed exploration and metallurgical testing, all aimed at advancing the project towardproductionreadiness
CEOSimonCoylesaysmetallurgytestworkwillbeongoing on the Cambridge mineralisation as the company continues to move forward with study work and the developmentpipeline
The Cambridge prospect, a key component of the NQVP, hosts a resource of 206 million tonnes at 033% vanadium pentoxide
Notably, the prospect hosts a higher-grade middle layer, with drill intercepts such as 2m at 1% vanadium pentoxide from10mand3mat062%vanadiumpentoxidefrom10m
As Velox’s understanding of the Cambridge deposit develops, the company is seeing that the mineralisation is shallower and thicker than prior explorers had initially anticipated.
Velox has prioritised optimising a mine development plan thatleveragesthelowstripratioandhigheraveragegrade of the Cambridge deposit This strategy aims to reduce mining costs while maximising the economic potential of theresource
While the Cambridge prospect has been a major focus, Velox’s 1,246km2 landholding offers further exploration upside from multiple other prospects To date, only 15% of the NQVP area has been explored, providing additional opportunitiesforresourceexpansion
Expanding resource potential
The company is targeting high-grade mineralisation at prospects such as Flinders River, Runnymede, and Silver Hills, all of which lie within the Toolebuc Formation the primaryhostrockforvanadiumintheregion
Over 76km of this structure has been mapped and more than 300km2 is outcropping, while 100km2 is undrilled withintheRunnymedeprospect
In mid-May, Velox defined an exploration target for the prospect, estimating 1443 to 21646 million tonnes at an average grade of 022% to 033% vanadium pentoxide, along with 147 to 2208 parts per million molybdenum trioxide
Preliminary metallurgical test work has already demonstrated a 2-365 times improvement in vanadium pentoxide grade, with results reaching up to 098% These outcomes underscore the potential for further enhancing resourcegradesandimprovingeconomicviability
“Mineralisation is near surface (which implies a low strip ratio),occursinsoftflatlyingoxidisedsediments(implying low-cost mining) and coupled with the sizing results and the identification of vanadium in the -38μm fraction, we have increased confidence in the successful economic and technical extraction of vanadium,” Coyle said earlier thisyear.
Vanadium’sroleinrenewableenergystoragesolutionshas madeitasought-aftercommodity.
Vanadium redox flow batteries (VRFBs), in particular, offer several advantages over traditional lithium-ion batteries, includingalongerlifespan,higherdischargecapacity,and scalability
These attributes make VRFBs ideal for grid-scale energy storage, a critical component of the global transition to renewableenergy
Global vanadium production in 2023 was approximately 100,000 tonnes However, the International Energy Agency projectsthatdemandwillsurgeto670,000tonnesannually by2040tosupportthegrowingenergystoragemarket
This translates to the need for over 50 new mines, each producing12,500tonnesofvanadiumpentoxideannually
Velox is progressing its strategy to develop vanadium products that can be transformed into vanadium electrolyte–thekeyingredientinVRFBs
“Mineralisation is near surface (which implies a low strip ratio), occurs in soft flat lying oxidised sediments (implying lowcost mining) and coupled with the sizing results and the identification of vanadium in the -38μm fraction, we have increased confidence in the successful economic and technical extraction of vanadium
Vanadium: A key to the renewable energy revolution
At the same time, the company is positioning itself to potentially take advantage of further opportunities in the sector
“There is also the potential for additional projects to be added to the company which will be complementary to ourcurrentNQVP,”Coylenotes
A significant milestone for Velox in 2025 will be its dual listing on the ASX This move is expected to broaden the company’s investor base, enhance market visibility, and providegreateraccesstocapital
In August 2024, Velox secured a conditional commitment foracornerstoneinvestmentofbetween$4millionand$5 million from the QIC Critical Minerals and Battery Technology Fund (QCMBTF), a fund managed and administeredbyQIC
Brisbane-headquartered QIC is owned by the Queensland Government and has over $100 billion in assets under management – making it one of the largest institutional investmentmanagersinAustralia
TheinvestmentisintendedtosupportVelox’slistingonthe ASX,whichaimstoraisebetween$8millionand$10million OncompletionofthecapitalraisingandlistingontheASX, QCMBTFwouldbepositionedwithapotentialstakeinVelox ofbetween15%and19%.Theadditionalfundsraisedwillgo towards feasibility and pre-production activities at the NQVP.
Velox now anticipates its proposed listing on the ASX will occuraroundtheendofMarch2025,withQCMBTFrecently agreeing to extend the long stop date of the executed subscriptionagreement
“2025 will be an exciting year for Velox as we finalise our ASX listing, further explore our tenements in the vanadium hub of Richmond/Julia Creek to expand and improve our currentresource,”Coylesaid
Thisareahostsseverallarge-scaleresources,includingthe 1752-million-tonne Debella deposit, which has attracted the likes of Japanese giant Idemitsu via a more than $75 million investment in the project’s owner Vecco Group to takeamajority51%stake
Velox’s efforts in 2024 have laid a strong foundation for future growth The company’s focus on high-grade vanadium mineralisation, ongoing metallurgical advancements, and a low-cost mining strategy position it welltomeetrisingglobaldemand
“2025 will be an exciting year for Velox as we finalise our ASX listing, further explore our tenements in the vanadium hub of Richmond/Julia Creek to expand and improve our current resource
SimonCoyle CEO VELOXENERGYMATERIALS
