The combined operation has a capital cost of US$399 million and an NPV of A$909 million.
The IRR of the new development scenario has increased from 12.4% to 17.5%.
Australian Vanadium's original PFS for Gabanintha was completed two years ago.
The rationale behind the move of the processing plant to Tenindewa near Geraldton includes access to cheaper competitive natural gas, a local workforce and iron-titanium coproduct sales opportunities for 900,000 dry tonnes per annum over the mine life.
The project will produce 24.3 million pounds of vanadium annually, with C1 operating costs of US$3.66/lb placing Australian Vanadium "firmly in the bottom quartile of current vanadium producers".
Annual earnings are put at A$144 million on an EBITDA basis.
The current project development timeline estimates completion of a bankable feasibility study by mid-2021, construction to begin in the second quarter 2022 and production to start in late 2023.
Risks to that timeframe include funding constraints, environmental permitting, and construction delays.
Australian Vanadium currently has about $7.5 million cash.
Shares in Australian Vanadium were unchanged at 1.4c in early trade, capitalising the company at $41 million.