- 01CMG starts 55-hole, 1,320m Lindfield drilling.
- 02Permit change brings the full mine plan within EPM 27872.
- 03Up to $2.05m sought to fund feasibility work.
Critical Minerals Group (ASX: CMG) has begun its first drilling at the Lindfield vanadium project since 2023 as it moves into definitive feasibility work on the Queensland development.
The initial program comprises approximately 55 core holes totalling 1,320 metres, with drilling starting on 27 October following site preparations earlier that month.
The campaign follows regulatory approval adding previously excluded land to the Lindfield exploration permit, bringing the entire proposed mine plan within its permitted area.
The company is also pursuing up to $2.05 million through a placement and share purchase plan to fund the opening feasibility workstreams, although part of the fundraising remains conditional.
Permit Resolution Reached
Queensland authorities approved the inclusion of the land in exploration permit EPM 27872 on 19 October, without changing the established mineral resource estimate of 713 million tonnes at 0.32% vanadium pentoxide.
The change addresses a risk rated high in Lindfield’s pre-feasibility study, which had identified an exclusion affecting up to approximately 20% of mineralised material in the proposed mine plan.
The July PFS identified a preferred processing rate of 3Mt a year, with a pre-tax net present value of $821m and an internal rate of return of 26.6%.
Its corresponding post-tax value was $458m, with initial capital estimated at $981m and a projected mine life of 31 years.
First Drilling Phase
The first drilling stage is designed to improve geological confidence around the mine development area, collect metallurgical material and provide groundwater and geotechnical information.
Up to three holes will become groundwater monitoring bores, while eight additional shallow auger holes are planned to inform engineering design.
A second resource drilling stage is proposed for the 2027 dry season to assess whether the initial mining area can be upgraded to a Measured classification and support a maiden ore reserve.
Core from the current campaign will feed bench-scale testing and a proposed pilot plant program focused on vanadium recovery, reagent consumption and processing performance.
Critical Minerals Group aims to lodge its coordinated project application and federal environmental referral before year-end, with subsequent assessment and engineering activities proceeding as funding allows.
Recent Capital Raising
The company ended September with $245,710 cash after net operating outflows of approximately $814,000 during the quarter, making additional capital central to the feasibility timetable.
It subsequently issued 9,341,214 shares at $0.06 each to raise $560,473 as the unconditional component of its October placement.
A further $689,527 of subscriptions remains subject to shareholder approval on 30 November, while the share purchase plan is seeking up to $800,000 and closes on 4 November.
Management has reduced annualised fixed executive remuneration by approximately $800,000 following leadership and finance staffing changes, with Pat Kelly taking over as interim chief executive officer in September.
Later feasibility stages, including the pilot plant and broader engineering work, will not proceed until the necessary funding is secured.
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