Tungsten Mining Completes Pre-Feasibility Study for Mt Mulgine Tungsten Project

en.Wedoany.com Reported - On September 1, Tungsten Mining completed the Pre-Feasibility Study (PFS) for the Mt Mulgine tungsten project in Western Australia and plans to advance to the Definitive Feasibility Study (DFS). The PFS base case is designed around an ore processing rate of 8 million tonnes per annum, with initial development capital of approximately A$870 million. Based on the forecast prices adopted in the study, the project has a pre-tax net present value (NPV8) of A$6.823 billion and a pre-tax internal rate of return of 55%, with first production targeted for the second quarter of 2029.

The base case has a mine life of approximately 21.9 years, with the open-pit mining plan involving approximately 173 million tonnes of ore at a tungsten grade of approximately 0.11% WO₃, with associated molybdenum, copper, gold, and silver. The latest Indicated Mineral Resource is 144 million tonnes at 0.10% WO₃, an increase of approximately 9 million tonnes compared with the resource first announced in 2021. Over the full life of the project, average annual production is expected to be approximately 5,653 tonnes of WO₃, with concurrent recovery of by-products including molybdenum, copper, gold, and silver.

The planned processing plant will produce a tungsten concentrate grading approximately 50% WO₃, a molybdenum concentrate containing approximately 50% molybdenum, and a copper concentrate with gold and silver by-product credits. The PFS estimates a C1 cash cost of approximately US$53 per metric tonne unit of WO₃ and an all-in sustaining cost of approximately US$127 per metric tonne unit of WO₃, after by-product credits. Tungsten Mining stated that, based on its global project cost comparison, the project has the potential to position within the low-cost quartile of non-Chinese tungsten projects.

The PFS also includes a subsequent expansion scenario, with ore processing capacity planned to progressively increase from 8 million tonnes per annum to 16 million tonnes per annum from 2034, with an estimated additional capital expenditure of approximately A$420 million for the expansion stage. Under this scenario, the project's pre-tax net present value is estimated to increase to approximately A$8.2 billion. Compared with the Scoping Study completed in November 2025, this PFS has increased the base-case processing capacity from 6 million tonnes per annum to 8 million tonnes per annum, with further refinement of capital expenditure, mine plan, production costs, and product mix.

Tungsten Mining is currently also undertaking approximately 40,000 metres of reverse circulation drilling at Mt Mulgine, with 130 holes planned, primarily targeting an exploration target of 165 million to 200 million tonnes at 0.10% to 0.12% WO₃. The drilling program is scheduled for completion in the first quarter of 2027. This exploration target remains conceptual in nature and cannot be used as a Mineral Resource. The company plans to commence the DFS in September 2026, with a target completion in the third quarter of 2027, followed by a final investment decision in the first quarter of 2028, while first production remains targeted for the second quarter of 2029.