SHE makes waves with JV for South Korea uranium and vanadium projects
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Stonehenge Metals Limited (ASX:SHE) has signed formal documents relating to a Joint Venture on its South Korean assets.
SHE owns the rights to three mineral projects in South Korea focussed on vanadium and uranium, including the flagship Daejon Project, which holds the nation’s largest uranium resource and significant vanadium resource potential.
SHE will receive $2.5M in consideration for the purchase of 50% of shares in SHE’s Korean subsidiary by KOSDAQ listed Korea Resources Investment and Development Inc. (KORID). Key terms of the Transaction can be found here.
The JV with KORID will allow SHE to dramatically progress the development of these projects.
The move means SHE is progressing on two commercial fronts, the other being its entry into the renewable energy market through its acquisition of the ProteanTM Wave Energy Converter Technology.
The technology is a unique type of wave buoy or point absorber, which floats at the water surface and extracts energy from waves by the extension and retraction of a tether to its anchoring weight on the sea bed.
SHE says the final detailed pre-fabrication design for a pre-commercial demonstration unit is nearing completion and construction is on track to commence in Q2 of 2015.
SHE’s JV deal to target Pre-Feasibility Study
The JV between SHE and KORID will see both companies jointly pursue a range of goals to bring the South Korean uranium and vanadium assets into production.
The first will be to collaborate on the testing of relevant sections of 36,000m of historic drill core taken from the Daejon Project.
The Daejon Project contains South Korea’s largest uranium resource measured at 66.7Mlbs grading 329ppm U3O8 at a cut off of 200ppm U3O8 (JORC 2004 compliant). Vanadium is present within the same rocks as the uranium resource and the maiden vanadium resource of 17.3Mlbs has the potential to enjoy a major size upgrade.
Analysis of the drill cores could lead to a significant vanadium resource size upgrade and a material uranium resource confidence upgrade for the Daejon Project, paving the way to the next step of the JV, which will be to prepare a Pre-Feasibility Study for moving into production.
This will be followed by the preparation of work programmes and budgets for a Bankable or Definitive Feasibility Study for the Daejon Project. SHE is working to finalise the details of the drill core analysis programme.
Wave technology pre-fabrication nearing completion
News of the Korean JV comes as SHE accelerates the development of its renewable energy business, focussed around the Protean Wave Energy Converter Technology.
In 2014, SHE acquired a 24-month global licence (with a renewal right for another 24 months) over the technology from its owner, Protean Energy Australia Pty Ltd, with an option to acquire 100% of the company’s equity.
Successful test of 1st generation prototype
SHE and Protean aim to commercialise the Protean wave energy technology as quickly as possible, and to do that the companies are working to deploy a 30 unit wave farm of 1m diameter Protean units in the ocean.
SHE and Protean plan to use this wave farm of pre-commercial units to demonstrate the technology to potential customers, who could deploy multi-unit wave farms or arrays in large power producing fields.
SHE and Protean are finalising the design of the demonstration units and fabrication is due to commence in Q2 of 2015.
It’s also commenced a site selection process to determine where the demonstration units will be deployed to show the wave farm’s capabilities to potential customers.
These steps are all part of SHE’s greater strategy to maximise its investment in the Protean technology, in order to realise the significant global market opportunities in wave energy.
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