Name of the Project
Mt Mulgine tungsten project.

Location
Murchison region of Western Australia.

Project Owner/s
ASX-listed Tungsten Mining.

Project Description
A prefeasibility study (PFS) has confirmed the technical and financial viability of a six-million-tonne-a-year mining and processing operation at Mt Mulgine.

The project has maiden mineral ore reserves of 140-million tonnes grading 0.10% tungsten, 288 parts per million molybdenum, 0.12 g/t gold, 5.9 g/t silver and 0.03% copper. The ore reserve estimate and mine plan are based entirely on indicated mineral resources.

The PFS envisages average production of about 460 000 t/y of tungsten in concentrate over the life-of-mine, with production of by-product concentrates of molybdenum and copper/gold/silver, with contained metal of about 1 070 t/y of molybdenum, 1 265 t/y of copper, 9 400 oz/y of gold and 525 000 oz/y of silver.

The project will be mined using conventional bulk drill-and-blast and load-and-haul methods.

The PFS estimates a long-life operation, with a life-of-mine of 24.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of A$422-million and an internal rate of return of 10.83%.

Capital Expenditure
The project has a total capital cost of A$669-million.

Planned Start/End Date
The execution strategy to deliver the project to operational status has yet to be formalised.

Ore production is expected 13 to 15 months after the start of site establishment.

Latest Developments
Tungsten Mining has conditionally agreed to acquire the assets of the project from Minjar Gold.

The acquisition gives the company rights to explore, and hopefully develop, all minerals on the Mt Mulgine tenements beyond tungsten and molybdenum.

Tungsten, through its wholly owned subsidiary Mid-West Tungsten (MWT), acquired 100% of the tungsten and molybdenum rights to the Mt Mulgine project in late 2015. 

Tungsten holds the rights to all by-products from the mining of tungsten and molybdenum, including gold, silver and copper. Minjar Gold, the registered holder of the Mt Mulgine tenements, holds all mineral rights other than tungsten and molybdenum.

The acquisition agreement outlines a purchase consideration of A$3.3-million, payable in cash, excluding stamp duty, with the assumption of any outstanding environmental liabilities pertaining to the assets. MWT paid a deposit of A$330 000 upon execution, with the balance payable upon completion. Completion is conditional upon receipt of Ministerial consent under the Mining Act 1978 (WA) for the transfer of the tenements and water licence. The agreement also includes provisions for the termination of the tungsten and molybdenum rights agreements held by MWT with Minjar.

No shareholder approvals are required for the transaction, and no changes will be made to Tungsten Mining's board or senior management. Tungsten Mining has also guaranteed the obligations of MWT under the agreement. 

Completion is expected on the last business day of November for which Ministerial consent is obtained, or the following month if consent is granted in the final days of the month. The agreement also contains provisions for termination if conditions are not met within four months of execution.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Tungsten Mining, tel +61 8 9486 8492 or email info@tungestenmining.com.