Western Australia-based mining junior Tungsten Mining reports that it has started with the second- and third-phase drilling programmes at its flagship Kilba tungsten project, which are due for completion by the end of the first quarter.

Following positive final analysis of the first eight holes of its Phase 1 drilling programme, the company will now focus on the rapid evaluation and development of the Kilba project, which is located in the Ashburton district of Western Australia.

The project boasts a strong pipeline of other potential tungsten projects in both Western Australia and the Northern Territory.

“The positive results have provided us with significant momentum in exploration,” Tungsten Mining MD Paul Berndt notes, adding that the analysis confirmed the exploration work of chemical and polymers company Union Carbide, which was conducted in the late 1970s and early 1980s.

The ASX-listed company started with diamond drilling in November last year to confirm the presence of the high-grade tungsten mineralisation indicated by Union Carbide three decades ago.

The final analytical results from the first eight holes confirm the high-grade nature of course-grained scheelite mineralisation.

Berndt explains that tungsten mineral- isation is associated with a sedimentary package containing skarn, calc-silicate and sedimentary units. The mineralised horizon contains multiple skarns that are often high grade in nature, and enclosed in lower-grade scheelite mineralisation, and which are hosted by calc-silicate and sedimentary units.

Second Phase Drilling

The second phase involves reverse-circulation and diamond drilling on 80-m-spaced section lines over 800 m, while the third phase will feature further in-fill drilling on selected section lines, at 40 m intervals.

Subject to ongoing positive results, Tungsten Mining’s current activity is the first of, and a major component of, studies that are being conducted as the basis for a full feasibility study.

The minerals mining junior intends to carry out the feasibility study over the next eight to 12 months, to determine the commercial viability of a mine at Kilba.

ASX Listing

December saw Tungsten Mining’s successful listing on the Australian Securities Exchange under the code TGN.

Berndt told Australia-based multimedia platform BRR Media, at the time, that this was a significant move for the company, as it was now able to concentrate fully on the Kilba project, having acquired the funding required to go through to the mine commitment stage.

“We were able to raise just over $5.1-million in difficult market conditions, which is testimony to the fact that tungsten is a good market to be in,” he said, adding that Tungsten Mining has an effective model that will enable it to extract value out of the sector.

Berndt explains that the company’s model focuses on high-grade surface mines in appropriate jurisdictions, adding that China is now an importer of tungsten concentrate, which is a good opportunity for Tungsten Mining.

“We think this situation will prevail for two years, as there are no other major projects able to come on stream in that time, and because we are able to focus on a small high-grade project, we believe we will be up and running within that timeframe,” said Berndt.

Further, the fact that Tungsten Mining has acquired enough funding to advance to the mining-commitment stage means that the company will be spending between $3-million and $4-million by the end of the first quarter.

Currently, it is already carrying out all the engineering and development work needed to arrive at a definitive feasibility study (DFS).

“At some point in the year we will be going back to the marketplace to raise capital and, I hope, to develop the actual mine itself,” he told BRR Media.

Company Outlook

Berndt maintains that, while the initial Kilba mine alone will already be a significant tungsten mining operation, it is only the beginning for Tungsten Mining, as the company continues to apply its small high-grade mine model to other projects in its sights.

With strong demand, limited new supply on the immediate horizon and limited high-grade deposits in the global pipeline, he believes that exciting opportunities lie ahead for the company.

“We believe we hold the key to unlocking shareholder value in this prime sector,” he says. “We are not interested in exploration for exploration’s sake – we are a develop- ment company and in the business of building low-cost, short lead-time tungsten mines.”

Berndt says the funds raised through listing Tungsten Mining have allowed it to fully evaluate the Kilba project, including the eventual completion of a DFS, while allowing sufficient working capital to evaluate other projects.

“The company has a board of directors which is well-qualified and experienced and who possess the right mix of skills to ensure successful execution of our business and operational plans,” he concludes.