Mt Mulgine a serious option for Hazelwood
PERTH (miningweekly.com) – Tungsten miner Hazelwood Resources on Wednesday announced that a prefeasibility study (PFS) for a concentrator at its Mt Mulgine project, in the Mid West region, had delivered a self-sourced feed option for its ATC ferrotungsten operations, in Vietnam.
The PFS estimated that a capital investment of about A$31.5-milllion would be required to establish a concentrator at the Mt Mulgine project, with the project delivering 90 000 t/y of concentrate.
The concentrator would, conceptually, provide around one-third of the required yearly feedstock for the ATC ferrotungsten project, based on the projected 2015 production.
Hazelwood currently sources its tungsten feedstock from a range of third-party sources.
“Tungsten concentrate represents 90% of the operating costs of the ATC ferrotungsten project. We are looking at Mt Mulgine as an opportunity to vertically integrate and reduce our overall feedstock costs, improving the refining margins for the business,” said MD Terry Butler-Blaxell.
“The challenge is to develop a low lead-time mining project at the right scale but that can readily recover the capital.”
He noted that the results from the PFS moved Hazelwood closer to the potential to provide a strategic internal source of tungsten feedstock to its ferrotungsten processing business.
The Mt Mulgine project currently has a total mineral resource of 2.52-million tonnes, grading 0.34% tungsten.
The mine design and ore reserves would be fully defined during a full feasibility study.
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