PERTH (miningweekly.com) – Junior minerals developer Thor Mining has scooped up a letter of intent from US-based Global Tungsten & Powders Corporation for up to 75% of the yearly production from its Molyhil tungsten mine, in the Northern Territory.
Thor said on Wednesday that the letter of intent provided terms for a future offtake agreement, subject to a successful technical and legal due diligence, as well as Thor securing the necessary funding to develop the Molyhil mine.
Global Tungsten & Powders would take between 70% and 75% of Molyhil’s yearly production of scheelite concentrate, with the offtake contract stretching over the four-year life-of-mine. The US firm would also have first right of refusal over a two-year extension term.
“This is both a milestone and a major forward step for the Molyhil project, and we welcome the participation of Global Tungsten & Powders, which is a significant player in the global tungsten industry,” said Thor executive chairperson Mick Billing.
He added that the agreement remained subject to due diligence requirements and financing being met, but had significantly enhanced the near-term development potential of the Molyhil project.
The project was estimated to host some 4.7-million tonnes of resource, grading 0.22% molybdenum and 0.28% tungsten, for 10 400 t of molybdenum and 13 100 t of tungsten.
A 2012 definitive feasibility study estimated that the project would require a capital investment of some A$69-million and would deliver yearly throughput of 400 000 t, to deliver some 2 200 t/y of scheelite product and 1 250 t/y of molybdenum concentrate.