Significant Improvement in Vanadium Grade in Phase 1 Sizing Metallurgical Testwork
1
TSX-V Announcement
25 April 2024
Significant Improvement in Vanadium Grade in
Phase 1 Sizing Metallurgical Testwork
Toronto, Ontario, April 25, 2024 – Velox Energy Materials Inc. (TSXV: VLX) (“Velox” or “the Company”)
is pleased to provide an update on results received from its Phase 1 metallurgical testwork program
completed on samples from the Cambridge Vanadium Deposit at the North Queensland Vanadium
Project (“NQVP” or “the Project”).
Highlights
• Sizing of three (3) composite samples completed.
• Findings indicate a significant improvement in V2O5 grade from within the -38μm fraction.
• Head grade results of 0.23% V2O5 from Composite 1 and 0.41% V2O5 from Composite 2 received.
• Pre-scrub results from the first two composites returned significant improvements to head grade
including:
o Composite 1 (-9.5mm sub split) within the -38μm fraction returning assays of 0.84% V2O5;
o Composite 2 (-9.5mm sub split) within the -38μm fraction returning assays of 0.98% V2O5.
Three composite samples were created from four diamond drillholes completed in September 2023 1
and submitted to Brisbane Met Labs (BML), an expert in the assessment of North Queensland vanadium
deposits, to assess mineral recovery within identified stratigraphic horizons of the prospective
Toolebuc Formation . Assay results of up to 0.98% V2O5 were achieved within the -38μm fraction
indicating a significant 2.4 to 3.65 times improvement in grade.
Velox’s President and CEO, Simon Coyle, commented:
“Our understanding of the stratigraphy and the various horizons within the mineralised zone has
improved considerably as a result of last year’s diamond drill ing program and this work has led the
direction of the current metallurgical testwork. Th ese initial results have confirmed that there is scope
to improve head grade through simple first pass sizing of selected horizons.
“To have a pre -float grade of 0.98% V2O5 is extremely pleasing and provides an excellent platform to
further increase the V 2O5 grade and consequently see an outcome in concentrate grades that may be
substantially higher.
“Mineralisation is near surface (which implies a low strip ratio), occurs in soft flat lying oxidised
sediments (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.”
1 VLX Announcement dated 24 January 2024: Velox drilling identifies high-grade vanadium zone within the Cambridge Deposit in Queensland, Australia
2
TSX-V Announcement
25 April 2024
Cambridge Mineral Resource – Toolebuc Formation
As per Figure 1, the separation of the Toolebuc can be seen, which has been derived by separating the
Toolebuc into a series of stratigraphic horizons based on lithological, mineralogy, and geochemical
variations observed. The horizons represent distinctive stages in the deposition of the Toolebuc
Formation and mineralisation. The horizon variation ha s material significance to understanding the
deposit and mineral processing.
Figure 1: NQVP Cambridge Vanadium Deposit Cross Section
TLBA:
• Represents correlative of the St Elmo Coquina;
• Limestone, shell tests typically exceed 50%, laminated with clay bands;
• Mineralogy dominated by coarse crystalline calcite; and
• Geochemically, typically moderate vanadium, high calcium, low silica content.
TLBB:
• Represents correlative of the Willats Crossing Shale;
• Shale-Limestone, shell tests typically 10-50%, laminated with clay bands and micrite;
• Mineralogy increasingly dominated by clay and micrite; and
• Geochemically, typically high vanadium, moderate calcium, moderate silica content.
TLBC:
• Represents correlative of the Manfred Coquina;
• Limestone, shell tests typically exceed 50%;
• Mineralogically dominated by coarse crystalline calcite, with apatite often abundant; and
• Geochemically, typically moderate vanadium, high calcium, low silica, often enriched P and TREO.
TLBD:
• Represents correlative of the Arrolla Shale;
• Shale, shell tests typically less than 10%;
• Mineralogy dominated by clay, micrite, and often increase pyrite; and
• Geochemically, typically high vanadium, low calcite, high silica, increased sulphur.
TLBE:
• Represents correlative of the Arrolla Shale Lower Transition to Wallumbilla Formation;
• Shale-Mudstone, shell tests generally absent;
• Mineralogy dominated by clay, limited micrite, minor pyrite; and
• Geochemically, typically low vanadium, low calcium, high silica.
3
TSX-V Announcement
25 April 2024
Metallurgical Testwork Program
Four diamond drill holes were selected to represent the Cambridge Vanadium Deposit (NQP23_002,
NQVP23_003, NQVP23_006 and NQVP23_008), with three geological horizons (A,B/C and D) within the
Toolebuc Formation being identified from drill logging and assays for testwork:
• Composite 1: Represents horizon A
• Composite 2: Represents horizon B/C
• Composite 3: Represents horizon D
Assays and quantitative XRD analyses of the head size were completed by BML as part of the testwork
program.
Metallurgical Testwork Results
The results of the testwork have been assessed by Velox metallurgical consultants , BHM Process
Consultants (BHM), with the following key observations identified :
• A strong correlation between the head assays and the drill assays was identified.
• Head grade results for of 0.23% V2O5 from Composite 1 and 0.41% V2O5 from Composite 2
received.
• Pre-scrub results proved very promising with results including:
o Composite 1 (-9.5mm sub split) within the -38μm fraction returning assays of 0.84% V2O5;
o Composite 2 (-9.5mm sub split) within the -38μm fraction returning assays of 0.98% V2O5.
These findings indicate a significant improvement of 2.4 - 3.65 times in V 2O5 grade from the original
sample to the mass within the -38μm fraction.
Next Steps
The positive findings from the Phase 1 metallurgical testwork program provide a solid foundation for the
next phase of testwork (Phase 2), which will include:
• Receipt of Composite 3 results;
• Bulk scrubbing of Composites 1 and 2; and
• Commencement of sighter flotation testing.
Velox anticipates results from Phase 2 testwork will be concluded by the end of Q2 CY24. Continued
updates will be provided as and when results are received.
4
TSX-V Announcement
25 April 2024
Sample Analysis and QA/QC Program
Velox uses a quality assurance/quality control (QA/QC) program that monitors the chain of custody of
samples and includes the insertion of blanks, duplicates, and reference standards in each batch of
samples sent for analysis. The drill core is photographe d, logged, and longitudinally cut, then ¼ core
sampled and shipped for analysis. The ¾ retained sample is held in a secured location for verification
purposes. Sample preparation (drying, crushing and pulverizing) is performed at Mitra PTS Laboratory,
an independent (NATA Accreditation No 14525) laboratory, in Gladstone, Queensland, Australia. The
entire sample is crushed to 70% passing -6 mm, and a riffle split of 250 grams is taken and pulverized
to 75 microns. Pulps are sent to Bureau Veritas, in Perth, Australia (and other independent Laboratories)
for analysis with the sample and pulp rejects stored as reserve.
Mitra PTS also complete density, moisture, carbon and sulfur testing on all samples.
Samples are analysed for vanadium and 50 other trace elements using Laser Ablation ICP -MS (LA101)
from a 30-gram pulp. All samples are also subject the assay by XRF (XF202), testing 13 major element
oxides with Umpire laboratory checks completed by ALS in Brisbane using lithium-borate fused digest
ICP-MS (ME-MS81) at 1:10 sample ratio.
Blind duplicates were included in the (LA101/XF202) at a 1:10 sample ratio and certified reference
standards (CRSs) and blanks were included in the assay program, including CRSs selected to represent
the expected vanadium assay grades.
No QA/QC issues were noted with the results reported herein.
About Velox Energy Materials
Velox Energy Materials is a publicly traded energy materials company developing and progressing high-
value assets in resource and research-friendly jurisdictions. The Company’s priority focus is the
advanced NQV Project in Queensland, Australia. The NQV Project hosts the Cambridge Deposit with an
CIM compliant Indicated Mineral Resource of 61.33 Mt @ 0.34% V 2O5 and 234.6 ppm MoO 3 along with
an Inferred Mineral Resource of 144.87 Mt @ 0.33% V 2O5 (cut-off grade of 0.25% V2O5) and 241.9 ppm
MoO3 (Dufresne et al., 2022). The Company is targeting shallow, high -grade mineralisation that can be
developed using low-cost mining and processing options.
The Company additionally owns Kotai Energy and the option to acquire 100% of the intellectual property
rights associated with the Solid -State Hydrogen Storage Project from Curtin University in Western
Australia. Kotai is focused on the commercialisation of technology that can produce high -pressure
hydrogen following transport as an inert powder.
In October 2023, the Company acquired a package of tenements that are prospective for lithium in
eastern Quebec.
Please visit our website at www.veloxenergymaterials.com.au for further information.
Approved by the Board of Velox Energy Materials Inc.
Investor Relations Contact
Andrew Rowell
Investor Relations – Australia
M: +61 400 466 226
Email: [email protected]
5
TSX-V Announcement
25 April 2024
Qualified Persons
The Velox Energy Materials technical information in this news release has been prepared in accordance with the Canadian
regulatory requirements set out in National Instrument 43 -101 (Standards of Disclosure for Mineral Projects) and
reviewed and approved on behalf Velox Energy Materials by Michael Griffiths, FAusIMM, Director & VP Exploration for
Velox Energy Materials, a Qualified Person.
Forward Looking Statements
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward -looking statements that are based on the Company’s expectations,
estimates and projections regarding its business and the economic environment in which it operates. Statements
about the closing of the transaction, expected terms of the transaction, the number of securities of Velox Energy
Materials that may be issued in connection with the transaction, and the parties' ability to satisfy closing
conditions and receive necessary approvals are all forward -looking informat ion. These statements are not
guarantees of future performance and involve risks and uncertainties that are difficult to control or predict.
Therefore, actual outcomes and results may differ materially from those expressed in these forward -looking
statements and readers should not place undue reliance on such statements. Statements speak only as of the
date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new
information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The figures noted in this announcement are in USD and sourced from the Future of Hydrogen Report prepared by
the IEA. They are not actual costs nor forward looking statements or financial forecasts and are not indicative of
the future performance of the Company.