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American Vanadium – Permitting America’s Only Vanadium Mine

American Vanadium

OVERVIEW

American Vanadium Corp. (TSXV:AVC, OTCQX:AVCFV) is transitioning from a resource development company to an integrated and micro-grid energy storage solutions provider. The Company has entered into a master sales agreement with Gildemeister to market and sell the CellCube vanadium redox flow batteries in North America. American Vanadium is developing the only vanadium mine in the United States.

INVESTMENT HIGHLIGHTS

  • Focused on becoming a leading provider of long duration energy storage and micro-grid systems in North America
  • Master Sales Agreement with Gildemeister, a German battery system manufacturer with a $1.43 billion market capitalization, to market and sell the CellCube vanadium redox flow batteries in North America
  • Long-lasting, stable vanadium flow batteries provide solution to problems associated with large-capacity energy storage and intermittent energy sources such as wind and solar
  • Developing the only vanadium mine in the United States

ENERGY STORAGE SOLUTION

American Vanadium Corp. has partnered with Germany’s Gildemeister AG to create a new energy storage industry in North America. The partnership plans to combine Gildemeister’s world-class vanadium redox flow battery technology with vanadium electrolyte produced from American Vanadium’s Gibellini Project in Nevada.

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Gildemeister’s fully commercialized CellCube energy storage system is used in a wide range of applications including recharging electric vehicles, storing wind, solar, hybrid  and grid power for smart grid integration and large-capacity storage for micro grids.

cellcube

As an Energy Solution Provider, American Vanadium will focus on addressing grid scale energy distribution management in North America including: electric vehicle charging station demand; integrating energy from intermittent sources such as wind and solar on to the grid and peak demand.

Vanadium flow batteries provide the solution to these and other energy problems because of their ability to capture energy as it is generated, store it and then release it at the optimum time. The unique properties of vanadium allow for the manufacture of a long-lasting, stable battery system—without the risk of fire associated with lithium-based batteries. These are good for mission critical sites such as government buildings, first response, airports, and hospitals.

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In February 2013, management of the two companies met with New York state, municipal and transit officials to discuss providing vanadium flow battery technology to help the State manage peak demand on the grid and meet its executive order requiring the reduction of greenhouse gas emissions by 80 percent by 2050.

American Vanadium plans to construct a battery fabrication facility in the U.S. and production from the Company’s Gibellini project, the only vanadium mine in the U.S. will provide at least 10 years of supply with four additional deposits on site to be explored.

RESOURCE PROJECT

Gibellini Vanadium Project, Nevada, United States

gibellini_map

The Gibellini Project is located in Eureka County, Nevada, about 27.5 miles south of the town of Eureka. The property is situated on the east flank of the Fish Creek Range in the Fish Creek Mining District and is easily accessed by dirt road extending westward from US Highway 50.

The Gibellini Project delivered a feasibility study September 2011 and is solidly tracking towards production (subject to permitting), which would make American Vanadium the only primary vanadium mine in the U.S.

According to the feasibility study, American Vanadium could potentially become the lowest cost primary vanadium producer in the world with a strip ratio of 0.22 and a unit operating cost of $4.10/lb.

Feasibility study highlights include:

  • Internal Rate of Return (IRR) 43%
  • Net present value $170.1 million at 7% discount rate
  • Payback 2.4 years
  • Average grade 0.302% vanadium pentoxide (V2O5 )
  • Strip ratio 0.22 to 1 (waste:ore)
  • Mining Operating Rate 3.5 million tons per year (ore and waste)
  • Average V2O5 recovery 65.9%
  • Average annual production 11.4 million pounds V2O5
  • Operating cost $4.10 per pound V2O5
  • Capital cost $95.5 million (incl. $10.7 million contingency)
  • Average V2O5 selling price $10.95 per pound (Roskill Consulting Group)
  • V2O5 selling price range $7.68 – $13.63 per pound (Roskill Consulting Group)

SUMMARY

The Company’s Gibellini Project, located in Nevada, is being designed to economically produce vanadium electrolyte for the energy storage industry, as well as vanadium products for the steel and alloying industries. A positive Feasibility Study and updated NI 43-101 Technical Report on the Gibellini Project were completed by AMEC E&C Services, Inc. in 2011.

In February 2013, American Vanadium and Gildemeister met with New York State officials to discuss providing energy storage technology to help meet the State’s executive order to reduce greenhouse gas emissions by 80 percent by 2050.

MANAGEMENT

Ron MacDonald – Executive Chairman
Mr. Ron MacDonald is the former Senior Assistant to the Canadian Minister of Foreign Affairs, Deputy Prime Minister, Chief of Staff to the Leader of the Government in the Senate of Canada, Parliamentary Secretary of International Trade and elected Member of Parliament. While President of the Council of Forest Industries, Mr. MacDonald championed industry wide developments including the establishment of the softwood lumber industry in Asia. He was also a contributing member of the OECD Committee on ethical minerals, a contributor to the EU Commission Framework 7 policy paper on ‘Scarcity of Strategic Minerals’ and a presenter at conferences in the USA, Canada and Asia on critical and strategic markets.

Bill Radvak, BASc – President, CEO, and Director
Mr. Radvak received a Mining and Mineral Process Engineering Degree (1986) from the University of British Columbia. Mr. Radvak is a co-founder and past Chief Executive Officer of Response Biomedical Corporation, a publicly listed medical device company that commercializes rapid immunoassay diagnostic tests for its marketing partners, 3M and Roche Diagnostics. Mr. Radvak led the Response Biomedical from its evolution to a 90-employee company and raised in excess of $50 million in public offerings.

Michael Doyle – Executive VP, Operations
Mr. Doyle has more than 30 years of domestic and international mining experience in surface and underground operations, most recently as Executive Vice President of Allied Nevada Gold Corp. Prior to joining Allied Nevada Gold Mr. Doyle held positions of Senior Vice President of Operations for Kinross Gold Corporation, Vice president and General Manager of Round Mountain Gold Corp, (Kinross-Barrick joint venture), General Manager of Gold Bar operations for Atlas Gold Corp.. He graduated in 1977 from the University of California at Santa Barbara with a degree in geology and was the past chairman of the Nevada Mining Association.

Ron Espell, BSc – VP Environmental
Mr. Espell, has more than 30 years of domestic and international mining experience, primarily, most recently with Barrick Gold as Corporate Environmental Director with responsibilities for new project development, permitting and financing, environmental oversight of operating mines, and the development and implementation of Environmental Management Systems. Mr. Espell held roles within Barrick as Environmental Manager at Barrick’s Goldstrike Mine and Environmental Director for the Barrick Australia Pacific and African Regions. Before joining Barrick, Mr. Espell was with the Nevada Division of Environmental Protection, where he helped develop and implement Nevada mining environmental regulatory programs.

Mike Hyslop – Director, Corporate Development
Mr. Hyslop has worked as a licensed stock broker where he focused on venture capital financing in the resource sector. He has consulted for several resource company’s since leaving the brokerage community providing advice and support in financings.

John Downes – Chief Financial Officer
John Downes joined American Vanadium as CFO in August 2011 and has over 10 years of management and accounting experience in the natural resource and financial services sectors. Mr. Downes also serves as the CFO for Canadian Phoenix Resources Corp. and the VP Finance for Ionic Management Corp. Previously, he was the Manager of Financial Reporting for Sprott Resource Lending Corp. as well as Quest Capital Corp. and was a manager for Price Waterhouse Coopers in Dublin, Ireland and Vancouver. He is a member of the Institute of Chartered Accountants of British Columbia and holds a Bachelor of Commerce degree from the University of Victoria.