en.Wedoany.com Reported - Against the backdrop of a significant surge in tungsten prices, tightening Chinese export policies, and Western governments seeking to diversify critical minerals supplies, Fox Tungsten is advancing its Fox project in southern British Columbia, Canada, aiming to establish it as one of the few tungsten mines in North America. Company CEO Stephen Gray recently provided an update on the project's exploration progress, this year's drilling plan, and the path toward a preliminary economic assessment.
The core advantage of the Fox project lies in its ore grade. According to Gray, the deposit averages approximately 1% tungsten, which, at spot prices, is equivalent to about 20 grams per tonne of gold or 25% copper. However, the company's currently confirmed resource stands at just over 1 million tonnes of ore, a relatively limited scale, with mineralization distributed unevenly, similar to a "high-nugget" gold deposit. Historically, some drill holes have returned exceptionally high grades of 6-7%, while others have shown no significant mineralization. Management believes this variability is a known characteristic of the deposit, and existing results still support the reported average grade of 1%.
In 2026, Fox Tungsten launched the largest drilling program in the company's history, totaling 20,000 meters with two drill rigs deployed. Approximately 60% of the meterage is allocated to resource growth, focusing on infill drilling in three along-strike zones that were previously not fully connected. These infill holes, ranging from 150 to 200 meters in depth with spacings of about 80 to 90 meters, are considered efficient and low-risk. Additionally, the project is testing the down-dip direction of the deposit for the first time, though drilling costs are higher due to terrain factors. Management has positioned this as a long-term exploration target, with deeper mineralization potentially requiring underground development, estimated to be around a decade away.
In terms of metallurgical processing, historical test work has focused on gravity recovery, leveraging tungsten's high density, similar to gravity circuits in gold processing. Tests indicate a recovery rate of approximately 75%, producing a high-grade concentrate with over 60% tungsten trioxide. The deposit is described as metallurgically "clean," free of mercury, arsenic, and selenium, and hosted in carbonate rock, which does not generate acid mine drainage. Upcoming preliminary economic assessment-level tests will investigate flotation as a secondary recovery step, aiming to improve overall recovery, potentially at the expense of some concentrate grade.
The Fox project benefits from relatively favorable infrastructure. The site is accessible via a forest road network connecting to 100 Mile House, and a power line crosses the mining area, previously serving the nearby closed Boss Mountain mine. Personnel and equipment are transported by truck, with staff rotating through Williams Lake Airport. However, site facilities such as tailings storage, power transformers, a permanent camp, and a processing plant have yet to be constructed. Regarding mining methods, management anticipates primarily underground operations, though the option of an initial small open pit is still being evaluated, with high snowfall potentially impacting open-pit operations. Comparable reference deposits include the closed Cantung mine in Yukon and Fireweed Metals' Mactung deposit.
On the financial front, Fox Tungsten recently raised C$12.7 million through flow-through shares, increasing working capital to approximately C$15 million, sufficient to support the 2026 drilling program and complete the preliminary economic assessment. The company's shareholder register includes two cornerstone institutional investors, holding approximately 19.9% and 9% of shares respectively, both of which participated in this financing round. Additionally, the company holds shares in Metal Energy valued at about C$2 million and is due to receive C$6 million over four years from a previously sold copper deposit, which management views as a reserve to cover general and administrative expenses. Beyond the Fox project, the company also controls land near the historic Boss Mountain molybdenum mine, with plans for early-stage drilling this summer.
Regarding the market backdrop, management noted that tungsten prices have risen approximately tenfold since early 2025, driven both by Chinese export restrictions and global supply shortages. China produces about 80% of the world's tungsten, and its domestic prices are also high, suggesting the trend is not purely geopolitical. Currently, there are no producing tungsten mines in North America, and government support for critical mineral supply chains provides a favorable environment for project development. Gray stated that the company's core focus now is advancing the project toward a preliminary economic assessment to clarify its economics, rather than simply pursuing resource scale.
