Tungsten Mining NL (ASX: TGN) has confirmed the technical and financial viability of its world class Mt Mulgine Tungsten Project in Western Australia with the release of Pre-Feasibility Study (PFS) results and a maiden reserve.
CEO, Craig Ferrier, said the PFS confirms large scale, long life, low-cost tungsten concentrate production in the Murchison region of WA.
The delivery of the maiden Ore Reserve and the completion of the Pre-Feasibility Study are major milestones for Tungsten Mining, underpinning the case for establishing large scale, long life and low-cost mining and processing operations at the Mt Mulgine Tungsten Project,” Mr Ferrier said.
“Tungsten is recognised as a critical mineral by the US, the European Commission, Japan, China and Australia, a key driver of industrialisation with high economic importance.
“The substantial scale of the Mt Mulgine Tungsten Project, its long life, low production costs and its location in a safe mining jurisdiction justifies the commitment of resources to support its development.
“Our focus now is on engaging with offtake and development partners to ensure Mt Mulgine fulfills its potential as a major tungsten producer for many years.”
- Pre-Feasibility Study (PFS) confirms technical and financial viability of a 6Mtpa mining and processing operation
- Maiden Ore Reserve Estimate of 140 million tonnes@ 0.10% tungsten (WO3), 288ppm molybdenum (Mo), 0.12g/t gold (Au), 5.9g/t silver (Ag) and 0.03% copper (Cu).1
- Long life operation with 23.5 years of processing activities.
- Average annual production of approximately 460,000 MTU’s of WO3 in concentrateover the Life of Mine (LOM). Production of by-product concentrates of molybdenum and copper/gold/silver with contained metal of approximately 1,070t of molybdenum 1,265t of copper, 9,400 oz of gold and 525,000 oz of silver per annum.
- Low-cost tungsten concentrate production with LOM operating costs (net of by-product credits) of US$92 per MTU WO3 and all-in sustaining costs of US$111 per MTU WO3.
The PFS capital cost estimate to construct a 6 Mtpa ore processing plant and associated mine infrastructure at the Mt Mulgine Tungsten Project to produce tungsten and molybdenum concentrates and copper concentrate containing gold and silver is A$669 million to a level of accuracy of +/- 25%. This estimate includes a contingency determined by Tungsten Mining of 10% applied to all initial capital costs.
Power supply for the Project is proposed by way of a third party supplied and operated LNG power plant pursuant to a Build Own Operate Transfer (BOOT) model defraying the initial capital cost. An amount of $30 million has been included in sustaining capital at the end of year 7, for payment of the transfer sum.
The PFS also confirms a Project of substantial scale, long life and with by-products of molybdenum concentrate and copper concentrate containing gold and silver.
Consistent with industry practice and accounting convention, by-product revenues are offset against operating costs to report a unit operating cost for tungsten concentrate (the primary product). This has resulted in a PFS operating cost estimate of US$92 per MTU WO3 produced and, after accounting for sustaining capital, an all-in sustaining cost of US$111 per MTU WO3 over the life of the Project.
This cost of production forecasted by the PFS Financial Model places the Mt Mulgine Tungsten Project in the second quartile of tungsten producers in a global cost curve.