Velox drilling identifies high-grade vanadium zone within the Cambridge Deposit in Queensland, Australia
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TSX-V Announcement
23 January 2024
Velox drilling identifies high-grade vanadium zone within
the Cambridge Deposit in Queensland, Australia
Toronto, Ontario, January 23, 2024 – Velox Energy Materials Inc. (TSXV: VLX) (“ Velox” or “the Company”) is
pleased to announce the drilling results from its Phase 1 diamond drill program at the Company’s flagship
Cambridge Vanadium deposit , its 100% owned North Queensland Vanadium Project (“NQVP”) located in
Queensland, Australia (Figure 1).
Highlights
• Assay results received are very encouraging, with the mineralized zone identified at shallow depths, uniform
thicknesses throughout the drilled area and consistent grades across the drilled area. Results include:
o Hole NQVP23_008 – 4.7 m @ 0.44% V 2O5 from 8.6 m (0.30%V 2O5 cut-off) including 1.1 m @ 0.84%
V2O5 from 10.5 m;
o Hole NQVP23_005 – 5.4 m @ 0.41% V2O5 from 19.5 m (0.30%V2O5 cut-off) including 0.8 m @ 0.77%
V2O5 from 12.9 m; and
o Hole NQVP23_004 – 4.7 m @ 0.47% V 2O5 from 9.5 m (0.30%V 2O5 cut-off) including1.1 m @ 0.72%
V2O5 from 20.5 m.
• The mineralized zone at a cut-off grade of 0.30 % V2O5 is typically 4.2 m thick at 0.41 % V2O5.
• Drilling indicates a laterally continuous high -grading layer within the mineralized zone, with V 2O5 grades
commonly exceeding 0.60 % V2O5 over a 1.5 m thick interval.
• Assay results have also identified a 0.5 m -1.0 m layer demonstrating a mild rare earth element enrichment
thought to be associated with the vanadium mineralized zone, with TREO grades commonly between 400 –
500 ppm.
• The overall Cambridge Deposit understanding has been enhanced due to:
o Improved lithological understanding;
o Improved stratigraphic correlation with the addition of downhole geophysics (Gamma and Density
plots);
o Identification of higher-grade units within the mineralized zone;
o Strong correlation to historical aircore assays; and
o Potential to apply new parameters across the entire deposit and regional targets.
Velox’s President and CEO, Simon Coyle, commented:
“The drill program completed last year has significantly increased our understanding of the Cambridge Deposit.
The latest diamond core assay results have exceeded our expectations and support our initial confidence in the
deposit. The recent assay results also suggest that we have a laterally continuous high-grading layer within the
mineralized zone, with V2O5 grades up to 0.60 % V2O5 over a 1.5 m thick interval.
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“As our understanding of the deposit develops, we are seeing signs Cambridge is shallower and thicker than
previous explorers had initially anticipated. Additionally, the potential in a newly identified high-grade zone and
a REE enrichment zone has provided a welcomed upside, that will be further investigated.
“These encouraging assay results validate our planned next steps for the NQVP , which include metallurgical
studies, a potential update to the existing resource and application of new geological knowledge over the entire
project area to prioritize our target generation and development. ”
.”
Figure 1: North Queensland Vanadium Project – Location
Exploration Summary
A total of ten (10) infill large diameter (100mm) 4C diamond core drill holes totaling 333 m were completed at
the Cambridge Vanadium deposit on EPM26494 located in central northern Queensland, Australia (Table 1).
The drilling was designed to increase overall stratigraphic knowledge for the deposit and provide ample
representative material for metallurgical testwork as well as additional data for future mineral resource
definition.
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The Cambridge Vanadium Deposit currently hosts a CIM compliant Mineral Resource Estimate (MRE)
consisting of an 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% V 2O5) and 241.9 ppm MoO 3
(Dufresne et al., 2022) and the recent program covered a representative portion of the currently defined deposit
(Figure 2).
Drilling was undertaken by J&S Drilling Pty Ltd (Queensland) using a Fraste FS400 drill rig . Downhole gamma
and density geophysical logs were completed by We atherford International PLC using equipment to the
American Petroleum Institute (API) standards Q1 and 14A, and logs recorded to international Logging Ascii
Standards (LAS).
A detailed geological assessment , sample selection and Toolebuc Formation correlation was completed by
John T Boyd Company. A total of 201 samples were selected for testing. Sample intervals were determined by
stratigraphic lithological changes with sample intervals ranging from 0.10 m to 2.7 m thick (averaging 1.0 m).
Drill cores were dispatched to Mitra PTS Laboratory in Gladstone, Queensland for sample preparation and
dispatched to Bureau Veritas, Perth, Australia, for analysis.
Table 1: 4C Core Holes Location
Hole ID Core Type Easting X Northing Y Depth (m) Dip (deg)
NQVP23_001 4C Core 692239 7734776 30 90
NQVP23_002 4C Core 692122 7733776 31 90
NQVP23_003 4C Core 693171 7734158 37 90
NQVP23_004 4C Core 693047 7733163 36 90
NQVP23_005 4C Core 694351 7735523 37 90
NQVP23_006 4C Core 694201 7734286 25 90
NQVP23_007 4C Core 695095 7733418 36 90
NQVP23_008 4C Core 695221 7734412 26 90
NQVP23_009 4C Core 692334 7735515 20 90
NQVP23_010 4C Core 693297 7735149 55 90
Total 333
EPSG: 7854 – GDA2020 / MGA zone 54
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Figure 2: Drill Hole Location Plan
Assay Results Summary
Assay results for 201 samples have been received from the 10 diamond core drillholes drilled within the
defined Cambridge deposit with the overburden depth ranging from 2.5 m to 21.0 m. Drillhole NQVP23_010
returned no significant vanadium results. The hole was collared in the basal section of the Toolebuc Formation
and drilled into the underlying (barren) Willumbimba Formation.
In summary, the results are very encouraging and analysis of grade cut-offs at 0.40% V2O5 (current MRE used
a 0.25% V2O5 cutoff) below demonstrates the potential for higher grade material to be selected from the overall
mineralized unit (Table 2) and as shown in the cross-section below (Figure 3).
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Table 2: Mineralized Zone with a 0.40% V2O5 cut-off grade
Hole ID From (m) To (m) Interval (m) V2O5%
NQVP23_001 17.4 19 1.6 0.43%
NQVP23_002 10.2 11.5 1.3 0.49%
NQVP23_003 14.9 17.4 2.5 0.49%
NQVP23_004 20.2 21.6 1.4 0.65%
NQVP23_005 10.6 13.2 2.6 0.60%
NQVP23_006 8.6 9.7 1.1 0.67%
NQVP23_007 21 22.6 1.6 0.52%
NQVP23_008 10 11.6 1.6 0.71%
NQVP23_009 4.4 5.6 1.2 0.48%
Figure 3: Cross Section
Distance 6.9km
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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 Lab oratories) 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 Pr oject 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 MoO 3 (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.
The Indicated Resource of 61.33 Mt @ 0.34% V2O5 and an Inferred Resource of 144.87 Mt @ 0.33% V2O5 for the Cambridge Deposit
was announced in November 2022 (see Currie Rose news release dated November 1, 2022 and the Technical Report by Dufresne et
al., 2022).
Please visit our website at www.veloxenergymaterials.com.au for further information.
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Approved by the Board of Velox Energy Materials Inc.
Simon Coyle
President & CEO
+1 416-214-7577
Investor Relations Contact
Andrew Rowell
Investor Relations – Australia
M: +61 400 466 226
Email: [email protected]
Qualified Persons
The Velox Energy Materials scientific and 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 information. 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.