PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Mt Mulgine tungsten project, in Western Australia, has estimated that the project would have a mine life of more than 23 years.
Based on a maiden ore reserve of 140-million tonnes, ASX-listed Tungsten Mining on Friday said that the project was expected to have average yearly production of some 460 000 t of tungsten in concentrate.
The project is also expected to produce by-product concentrates of molybdenum and copper/gold/silver with contained metal of some 1 070 t of molybdenum, 1 265 t of copper, 9 400 oz of gold and 525 000 oz of silver a year.
Capital costs for the project have been estimated at A$669-million, while all-in sustaining costs have been estimated at A$12.2/t of ore.
The PFS estimated a net present value before tax of A$422-million and an internal rate of return of 10.83%.
“The delivery of the maiden ore reserve and the completion of the PFS are major milestones for Tungsten Mining, underpinning the case for establishing a large scale, long life and low cost mining and processing operation at Mt Mulgine,” said Tungsten Mining CEO Craig Ferrier.
“The substantial scale of the Mt Mulgine tungsten project, its long life, low production cost and its location in a safe mining jurisdiction justifies the commitment of resources to support its development. Our focus is now on engaging with offtake and development partners to ensure Mt Mulgine fulfills its potential as a major tungsten producer for many years.”