(TheNewswire)
Vancouver, B.C. - TheNewswire – April 29, 2021? Crest Resources Inc. (CSE:CRES) (CNSX:CRES.CN) (OTC:CRSTF)(“Crest” or the “Company”) is pleased to announce thatdrilling has started on the Allaru Vanadium project (“Allaru” orthe “Project”). Crest holds a 60% interest in Allaru throughit’s 60% owned Australian subsidiary, AusVan Battery Metals Pty Ltd.(“AusVan”). The Project is a resource stage Vanadium Deposit withadditional potential for High Purity Alumina (“HPA”) located incentral Queensland, Australia.
The Allaru Vanadium Deposit is hosted in the shallow dipping vanadiumshale of the Toolebuc Formation. The Toolebuc Formation is projectedto break surface on a N-NW trending arch that crosses the claimpackage. The current drilling is focused on the extension of knownvanadium enriched shales where it is expected to encounter oxidizedvanadium shale (see map below). The current drill program haspermitted 32 drill holes for 900m of 10.2cm diameter core recoverydrilling on seven lines with a 1 km spacing between drill holes.
Project Highlights:
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- Large Scale and High-GradeDeposit
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- Historic JORC Inferred Resource (2018) of 618 Mt at0.45% V 2 O 5 * with an exploration target of 880 -1,100 Mt with the potential for an additional high value HPAco-product
- Drilling is focused on developingoxide resources extending from existingfresh Vanadium enriched shales
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- Includes potential to improve project economics basedon reduced potential strip ratios
- Unoxidized material may not require roasting, whichwill potentially reduc e capital and operationalexpenses associated with development scenarios
- Standard Processing Flowsheet forToolebuc Formation Vanadium shale returns up to 95% vanadium recoverywith atmospheric leach technology
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- Detailed processing flow sheet supports a clearpathway to full V 2 O 5 production
- AusVan has commissioned Brisbane Met Lab to conductbench scale metallurgical work seeking to optimize the process forrecovery of vanadium from Allaru Vanadium shale
- Current metallurgical work seeks to optimize thisprocess with Allaru material
- Moving forward to clear path todefinition of a near surface oxide resources and definition of PEAlevel economics
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*The JORC resource was completed forVecco Group in 2018 by John T. Boyd Company and is historic innature.
Neither AusVan nor Crest hasindependently validated the estimates and therefore is not to beregarded as reporting, adopting or endorsing those estimates. Further work will be required to bring the resource into compliance.
Nothing has come to the attention ofAusVan that causes it to question the accuracy or reliability of theestimate.
President Michael Collins comments, “The last year has seen a strongbuild out of vanadium flow battery installation amid projections ofvanadium shortages in the near term. The public market is seeing theviability and value of vanadium battery systems and the value ofvanadium focused developers has benefited from this up swing in themarket.”
“The economic advantage is increasingly evident in the large and thesmall scale electricity back up and flow optimization applications.The fall of 2020 saw significant up ticks in contract for anddeployment of Vanadium flow batteries, and the related increase invaluations of public Vanadium resource and battery developmentcompanies. Vanadium is a key part of the renewable energy future byproviding a low cost battery energy storage solution on large gridsand sole site power systems. We see a clear pathway to make theProject a significant part of the clean energy storage market.”
Allaru Vanadium Project
Covering 1,088 km 2 , the AllaruVanadium Project is located 80km north of Julia Creek in centralQueensland, Australia. The base metals mining center of Mt. Isa, andregional airport is located 230km to the west. The Mt. Isa railnetwork passes through Julia Creek with connections to Charters Towersand Townsville and Port Abbot at Bowen allowing for low cost shipping.The area has a hot dry climate with flat lying topography and iseasily accessible by road and near existing power.
As part of it’s purchase, AusVan also holds rights to an advancedmetallurgical process flow sheet designed for an adjacent PFS levelVanadium/HPA project which also targets Toolebuc Formation VanadiumShale and is located 40 km south west of the Project. The chemistry ofthe vanadium shale of these two projects is very similar in major andminor elements. AusVan has commissioned Brisbane Met Lab to conductbench scale metallurgical work seeking to optimize the process forrecovery of vanadium from Allaru Vanadium shale.
Geology
Centered on the Euroka Ridge separating the Carpentaria and EromangaSedimentary Basin in northwest Queensland, the Project displays manysimilar characteristics to the nearby advanced Debella Vanadium + HPAProject owned by Vecco Group; a near surface, flat lying and locallyoxidized vanadium enriched shale. The Project is hosted by Cretaceoussedimentary rocks of the Toolebuc Formation. The Toolebuc Formation iscomposed primarily of banded limestone and shales, is widelydistributed and laterally stable across the Project. The Vanadiummineralization is concentrated in the Toolebuc Upper and Lower beds. The Toolebuc Upper bed ranges in thickness from 0.3m to 3.0m inthickness, averaging 2.8m, and the Toolebuc Lower bed ranges inthickness from 1.3m to 4.1m in thickness, averaging 2.8m.
Drill Rig on site at Allaru
Map of Allaru Tenements, QueenslandAustralia with historic and planned drilling
Crest's partner in AuVan and the Allaru Vanadium Project, VeccoIndustrial, will maintain an 40% undiluted interest in AusVan untilcertain conditions are satisfied, including public listing of AusVanand incurring expenditures of at least CAD $1,000,000 on the Project.
The technical portion of this news release was reviewed and approvedby Mr. Nicholas Rodway, P.Geo. and VP Corporate Development, aqualified person as defined under definition of NI 43-101.
About Crest Resources Inc.
Crest Resources Inc. is a British Columbia companylisted on the Canadian Securities Exchange under the symbol CRES. TheCompany’s principal business activity is the acquisition,exploration and evaluation of mineral property assets in Canada,Australia and Peru and the investment in mineral exploration companiesand related mining technologies of merit. The Company’s Canadianassets include various land and corporate ownership positions withinthe Exploits Subzone, the newest emerging district-scale goldexploration and mining district in the province of Newfoundland andLabrador, mineral recovery systems with 3RC/Ecomine/Gemina Labs,copper and gold exploration in the Toodoggone with Volatus Capital,and Vanadium projects in northwestern Australia with AusVanBattery Metals Pty .
FOR FURTHER INFORMATIONCONTACT:
Michael Collins
President and CEO
Crest Resources Inc.
Telephone: 778 - 819 - 2709
Neither the Canadian SecuritiesExchange nor its Regulation Service Provider (as the term is definedin the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy of accuracy of this newsrelease.
Forward-Looking Statements
This news release contains certain forward-lookingstatements, which relate to future events or future performance andreflect management’s current expectations and assumptions. Suchforward-looking statements reflect management’s current beliefs andare based on assumptions made by and information currently availableto the Company. Readers are cautioned that these forward-lookingstatements are neither promises nor guarantees, and are subject torisks and uncertainties that may cause future results to differmaterially from those expected including, but not limited to, marketconditions, availability of financing, actual results of theCompany’s exploration and other activities, environmental risks,future metal prices, operating risks, accidents, labor issues, delaysin obtaining governmental approvals and permits, and other risks inthe mining industry. All the forward-looking statements made in thisnews release are qualified by these cautionary statements and those inour continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof andthe Company does not assume any obligation to update or revise them toreflect new events or circumstances save as required by applicablelaw.
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