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The Green Giant Vanadium Project


Located just 15 kilometres within the same property claims, but completely separate from the Molo Graphite Project, is the Green Giant Vanadium Project. It is one of the largest known vanadium deposits in the world.

The Green Giant Vanadium Project is an advanced stage exploration project, hosting a National Instrument 43-101 compliant (NI 43-101) resource estimate of 60 million tonnes of vanadium pentoxide (V2O5) at an average grade of almost 0.7% at a 0.5% cut-off.

 

Classification
(at 0.5% V2O5 cut-off)

Tonnage
(million tonnes)

V2O5
(million pounds)

Grade
(%V2O5)

Indicated 49.5 756.3 0.693
Inferred 9.7 134.5 0.632

 

A Unique Deposit

Not only is the Green Giant a true giant in size, it is also a rare and unique deposit. Here’s why.

Ninety-five percent of vanadium deposits worldwide are magnetite-hosted, meaning that the vanadium is bonded with magnetic metals, such as iron and titanium, and commonly occur as thinly layered deposits. Magnetite-hosted vanadium deposits are well suited for the steel market, where vanadium is produced into ferrovanadium, the form in which steel producers buy vanadium in order to combine it with steel to make high-strength metal alloys. Just 2 pounds of vanadium added to a tonne of steel will double its strength.

What makes the Green Giant Vanadium Project particularly unique among the majority of vanadium deposits in the world is the fact that it is a sediment-hosted deposit. Since about only five percent of vanadium occurrences occur in sediments, the Green Giant Project is a rare type of vanadium deposit.

Being sediment-hosted, no magnetic metals are associated with Green Giant’s vanadium and this makes it ideally suited to produce high-purity vanadium pentoxide (V2O5), which is a key precursor material required to produce the liquid electrolyte that powers a vanadium redox battery (VRB). The VRB is currently recognized as a leading, large-scale energy storage system technology for the harnessing of coal-powered and renewable energy and as such, is forecasted by industry analysts to have high future demand growth.

Since high-purity V2O5 is essential in producing the clean electrolyte (99.5%) needed in VRBs, magnetite-hosted vanadium deposits are not well suited for VRB applications. This is because they contain impurities not found in sediment-hosted deposits and the impurities, which must be removed, are costly to extract.

 

A Strategic Asset

In 2010, NextSource put all vanadium development activities on hold to focus its efforts exclusively on developing its Feasibility-stage Molo Graphite Project. This was based on the high-growth demand forecasts for flake graphite and on the lower capital and operating costs required to bring a flake graphite mine into production as compared to a vanadium mine.

The global quest to efficiently harness renewable energy into a battery has been described as the “holy grail” of energy storage and the growth opportunities for efficient energy storage systems are substantial. Although the development of the Molo Graphite Project into a mine will remain the primary focus of the Company, it has always believed in the market demand for both graphite and vanadium, as these “energy” minerals are key materials in battery chemistries for large-scale energy storage systems. The Company continues to believe strongly in the market potential of VRBs as a leading technology for these applications, and in particular the off-take potential for a high-purity vanadium pentoxide (V2O5) concentrate from our Green Giant Project. Serendipitously, the two critical materials required to power a VRB are vanadium and flake graphite.

As such, NextSource considers its aptly named Green Giant Vanadium Project to be a strategic asset that compliments its ambitious goal of providing the next source of strategic battery materials that will change the world.

 

About the Green Giant Vanadium Project

The 100%-owned Green Giant Vanadium Project, located in south-central Madagascar, is one of the largest-known vanadium deposits in the world.

The Green Giant Vanadium project comprises claims located in the UTM zone 38S on the WGS 84 datum at coordinates 510,000 E 7,350,000 N, 145 km southeast of the city of Toliara, in the Tulear region near Fotadrevo, covering an area of 225 km2 situated in two separate blocks. The property is composed of two separate groups of four and two research permits respectively.

 

Exploration and Delineation of a NI 43-101 Resource Estimate

The 100%-owned Green Giant Vanadium Project, located in south-central Madagascar, is one of the largest-known vanadium deposits in the world.
The Green Giant Vanadium project comprises claims located in the UTM zone 38S on the WGS 84 datum at coordinates 510,000 E 7,350,000 N, 145 km southeast of the city of Toliara, in the Tulear region near Fotadrevo, covering an area of 225 km2 situated in two separate blocks. The property is composed of two separate groups of four and two research permits respectively.

Exploration and Delineation of a NI 43-101 Resource Estimate

Since acquiring the Green Giant Vanadium Project in August 2007, NextSource Materials (NextSource) has spent over US$10 million on exploration and development of the vanadium project, with an additional US$20 million spent on exploration and development of its Molo Graphite Project.

In 2008, an extensive exploration program was conducted on the property and consisted of the following:

  • 131 diamond drill holes (21,957 metres)

  • 140 trenches (17,105 metres)
  • 11,035 soil samples
  • Airborne - 7,843 line kilometres flown
  • Ground geophysics 
  • 281 line kilometres of EM surveys 
  • 589 line kilometres of MAG surveys

 

NI 43-101 Vanadium Resource Estimate

A comprehensive diamond-drill program undertaken by the Company confirmed the discovery of five extensive vanadium-bearing trends on the property and the potential for economic vanadium mineralization (deposits). These vanadiferous trends are theorized to have formed in a black shale or paleoroll-front environment before being subjected to regional granulite facies metamorphism.

NextSource selected the Jaky and Manga vanadium-bearing trends as the most prospective targets on the property and focused the late 2009-drill program at delineating mineralized material on these two deposits. Various metallurgical scoping test programs have been completed since Q4 2009, covering physical and chemical pre-concentration processes, acid and alkaline leaching (atmospheric and pressure), alkaline salt roasting and high definition mineralogical characterization. Mineralogical characterization of several silicate samples has revealed a unique deportment of vanadium at Green Giant. Vanadium bearing minerals include clays, micas, oxides, and sulphides.

The mineral deposits on this property have been divided into three separate zones, which are referred to as the Jaky, Manga, and Mainty deposits. The vanadium deposits on the Green Giant property are split into two separate categories: oxide and primary. The mineralization analysis utilized 18,832 m of diamond drill hole data from the 2008, 2009, and 2010 drill programs and was supplemented by approximately 5,928 m of trench data from the 2008 and 2009 exploration programs.

The exploration work resulted in the delineation of a National Instrument 43-101 compliant (NI 43-101) resource estimate with an indicated resource of 49.5 million tonnes at an average grade of 0.693% vanadium pentoxide (V2O5), containing 756.3 million pounds of V2O5 and an inferred resource of 9.7 million tonnes at an average grade of 0.632% V2O5, containing 134.5 million pounds of V2O5.

This NI 43-101 resource estimate ranks the Green Giant vanadium deposit as one of the largest known vanadium deposits in the world.

Based on the Company’s exploration efforts to date, a 21km (18 mile) continuous vanadium trend (at surface) was identified on the property, of which only 25% of the trend being drilled to date. The vanadium resource comprises of three main sections: Jaky, Manga, and Mainty.

Please refer to the Company’s Green Giant Technical Report dated X, available under the Company’s profile at www.sedar.com for a discussion in respect of certain key assumptions, parameters and methods in respect to the mineral resource disclosure.


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