The share price for Australian-owned Pursuit Minerals Ltd [ASX:PUR] has managed to fall 9.67% to almost $0.030 a share, despite today’s announcement that high-grade vanadium deposits have been confirmed at a major Scandinavian project.
The current share price is $0.028 at time of writing.
The vanadium obsession continues after ‘stunning’ news
Like many new energy miners, Pursuit Minerals are primarily focused on the exploration and development of vanadium (as well as zinc and copper).
The latest news comes from the Airijoki project in Northern Sweden, where the company confirmed that their latest drill results indicate substantially thick levels of vanadium mineralisation.
Pursuit is not the only mineral exploration company to benefit from the ‘next mining boom’. Local and international names — such as TNG Ltd [ASX:TNG], Venus Ltd [ASX:VMC] and New Energy Minerals Ltd [ASX:NXE] — have also joined a long list of companies looking to profit off the popular resource.
Managing Director, Jeremy Read, said that this was a stunning result:
‘Following such a positive start to the results coming in from the recently completed drilling program, we are now eagerly awaiting the geochemical results from the vanadium magnetite concentrates produced from the whole rock vanadium.’
The full geochemical results of levels of vanadium magnetite concentration are expected to be delivered in January.
2019 Pursuit’s year for vanadium exploration
Despite this morning’s downturn, Pursuit Minerals have clearly timed their foray into vanadium exploration well. Vanadium has been the standout energy metal for months — with its price of continuing to grow strongly.
While this has been largely offset by the growing demand from China (thanks to their new rebar rules), several companies have setup shop throughout Europe, Asia and Australia in readiness for the expected growth in battery applications, as well as large-scale energy storage solutions.
Demand for vanadium resources is set to triple over the next 5–6 years, necessitating that several new projects will be needed in several areas.
Assuming the expected growth outlook doesn’t change, perhaps the only thing investors need to worry about is internal competition in the months ahead.
Editor, Money Morning
PS: If you’re unclear about which mining and exploration stocks are best for you, then you’ll want to have a look at our free report: 10 ASX Resource Stocks you should be watching. Download now.