The Neometals Ltd (ASX: NMT) share price is soaring today following news of the company's vanadium recovery pilot plant.
Neometals reported that trials were complete and had resulted in excellent product purity with higher vanadium concentrates.
Right now, the Neometals share price is 80 cents, 6.67% higher than its previous close.
Let's take a closer look at today's news from the mineral exploration and development company.
Successful trials
The Neometals share price is gaining after the company advised it has completed pilot trials for its Vanadium Recovery Project.
During the trials, the project processed around 14 tonnes of vanadium-bearing steel by-product (slag) from 3 Scandinavian steel mills.
Neometals said the processed slag consistently had a purity of more than 99.5% vanadium pentoxide. As a result, the project's operational costs would be less than they would have otherwise been.
Additionally, the process was found to have recoveries of more than 75%.
According to today's release, the process in which Neometals recovered vanadium from slag uses carbon dioxide. The company plans to get future carbon dioxide from emissions sources. Therefore, it anticipates the final project may have net-zero carbon emissions.
Neometals managing director Chris Reed said the trial results had "significantly de-risked the project".
What next?
Neometals funded and managed the project's evaluation activities with the hopes of securing a 50% joint venture interest with Scandinavian mineral development company, Critical Metals. The Neometals share price gained 6% when the company announced the planned joint venture in April 2020.
Neometals now plans to select engineers for the project and begin a feasibility study. It will also work to provide larger samples for product evaluation and offtake discussions.
Potential off-take partners in Europe and Japan have already been sent samples of Neometals' ammonium metavanadate and vanadium pentoxide. They will now determine if the products are suitable for use in high tech and battery applications.
One of Neometals' by-products, stabilised slag material, may also be useful to concrete or building materials manufacturers. Potential customers will test samples of the by-product.
The company expects to complete the project's feasibility study by the end of June 2022.
Neometals share price snapshot
The Neometals share price is having a good run on the ASX.
It has gained 167% year to date. It is also currently 307% higher than it was this time last year.
The company has a market capitalisation of around $411 million, with approximately 548 million shares outstanding.
