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.”
Highlights include:
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.