Tungsten Scr

8/22/2019 Tungsten Scr

1/16A supplement to Mining Journal


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sc ee teconcentrate

wolframiteconcentrate

pr mary tungstenconcentrates

secon ary tungstenconcentrates

loss throughdissipation & discard scrap from used parts

nalproduct

TOTAL TUNGSTEN DEMAND

Industry schematic

CONTENTS

Overview 2-4Exploration 5-6Map 8-9

Profiles:Amanta Resources 7Geodex Minerals 10Malaga 11North American Tungsten 12Oriental Resources 13Ormonde Mining 14Queensland Ores 15

Cover: montage of cheelite and tungsten images,

with w the chemical symbol for wolfram

Photo: North Amer ican Tungsten

Published in June 2008 by:Mining Communications LtdA ert ouse, inger treeton on A 4e : +44 ( 6 6 6 ax: +44 ( 6 6-ma : e itoria mining-journa .come s te: www.mining-journa .com

Supplement editor: Chris Hindees gn an pro uct on: im eters,aren everington, ic ie o nstonerinte y atimer ren , ymout ,

ining ommunications tAn Aspermont company

Although not isolated until 225 years

ago, tungsten has a history dating

ac to e ore eorg Agricoa, w o is

t oug t to ave escri e t e ore in

1546. Tin miners extracting cassiterite

in the Erz Mountains of Saxony in the 17th century

noted that certain ores reduced the amount of tin re-

covered like a wolf devours a sheep (the effect of the

ore being likened to wolfs froth, volf rahm in German).

In 1758, the Swedish chemist and mineralogist,

Axel Fredrik Cronstedt, discovered and described an

unusually heavy mineral that he called tung sten. Al-

though he was convinced that this mineral contained

a new and as yet undiscovered element, it was not

until 1781 that a fellow Swede, Carl Wilhelm Scheele

(w o wor e as a p armacist an private tutor in

Uppsala and Kping) succeeded in isolating the oxide

(tungsten trioxide).

Torbern Bergman, working at Uppsala, predicted

that the acid isolated by Mr Scheele contained a new

metal, which should be possible to prepare by coal

reduction. One year later, a Spanish nobleman,

Don Juan Jos de Elhuyar, studied at the University of

Uppsala under Bergman. Back in Spain in 1783, Juan

Jos and his brother, Fausto de Elhuyar de Suvisa,

were the first to prepare tungsten metal by the

method suggested by Bergman. They named it wol-

fram. Jns Jacob Berzelius (1816), and later Friedrich

er ( 4 , escri e t e oxi es an ronzes o

tungsten, and also proposed the name wolfram.

In 1821, KC von Leonhard proposed the name

cheelite for the mineral CaWO4. In 1847, R Oxland

took out a patent for the manufacture of sodium

tungstate and tungstic acid. This forms the starting

point of the metallurgy of tungsten.

eavy stoneThe name tungsten is taken from the Swedish foreavy stone (tung sten), but the element is also

wi e y re erre to as wo ram a ter one o its ores

The brothers Jos and Fausto Elhuyar are credited

with the discovery of the element in Spain

during 1783. They had found an acid made from

wolframite that was identical to an acid made

from scheelite (tungstic acid), and subsequently

succeeded in isolating tungsten through reduction

of this acid with charcoal.

Carl Wilhelm Scheele had ascertained two

years earlier that a new acid (at the time namedtungstenite cou e ma e rom sc eeite. r

Scheele and Torbern Bergman suggested that

it cou e possi e to o tain a new meta y

reducing this acid.

he International Tungsten Industry Association

was inaugurate in russe s in e ruary , an

is registered as an association with scientific

purposes under Belgian law. The members of ITIA,

rom 17 countries, include mining companies,

processors/consumers, trading companies and

assayers. Website: www.itia.org.uk

ungsten conversion measurements

W 1.2616 WO

Ton 2,000lb

Ton 0.907t

Tonne 2,204.6lb

Tonne 100MTU (metric tonne units)

Short ton unit 20lb (1% short ton)

MTU 1.1023STU

MTU 10kg (1% metric tonne)

MTU 22.04lb

HISTORY LESSON

ITIA

CONVERSION

e rst attempts to pro uce tungsten stee

were made in 1855 by J Jacob and F Koeller at the

Reichraming steel works in Austria. Further improve-

ments in alloying and hardening of steels by tungsten

were made late in the 19th century, and rapid growth

and widespread application followed. The launch of

high-speed steels by Bethlehem Steel took place in

1900 at the World Exhibition in Paris.

The second important breakthrough in tungsten

applications was made by WD Coolidge in 1908

and 1909. Mr Coolidge succeeded in preparing aductile tungsten wire by thermo-mechanical

processing. Metal powder (WC) was pressed to

ars, sintere an orge to t in ro s. ery t in

wire was then drawn from these rods. This was the

beginning of tungsten-powder metallurgy, which was

instrumental in the rapid development of the lamp

industry.

The next important milestone in the chronology

of tungsten is 1923, which marks the invention of

hard-metal (combining WC and cobalt by liquid-phase

intering) by K Schrter. The corresponding

application for a patent was granted to Osram

Studiengesellschaft in Berlin, and licensed to Krupp in

Essen in 1926. Hard-metal (cemented carbide) is nowthe main application for tungsten.

June 2008 Mining Journal special publication Tungsten

OVERVIEW

2

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ar ness: econ ony to iamon , an

tungsten carbide is used in a range of industrial

app ications, inc u ing ig -spee cutting, eavy

machinery and specialty alloys.

Heat resistance: Highest melting point and

lowest coefficient of expansion of all metals.

Industrial applications include jet turbine engines

and light-bulb filaments.

Density: Greater than lead and uranium, and

industrial applications include ballast and sporting

goods (golf clubs, tennis racquets and darts).

Benign: Tungsten does not break down or

decompose. Its industrial applications includes ing weig ts an s otgun s ot.

uorescence: ure sc ee ite is ue-w ite in

u travio et ig t, a property t at is utiise in

prospecting.

A 1mm tungsten bead helps this fishing fly sink more quickly

UNIQUE PROPERTIESTungsten (given the chemical symbol W, from

wolfram) has an atomic number of 74, and is an

extreme y ar , an very ense, grey to w ite meta ic

element. Of the metals, it has the highest melting

point (3,422C, which is second only to carbon

among all elements), the lowest coefficient of

expansion, the highest tensile strength (at tempera-

tures above 1,650C) and the lowest vapour pressure.

It is also corrosion resistant and does not break down

or decompose.

Due to these unique attributes, tungsten has few

replacements in a majority of its industrial applica-

tions. Although tungsten is often brittle and hard towork in its raw state, it can be cut with a hacksaw in

its pure state.

e pure orm o tungsten is use main y in

e ectrica app ications, ut its many compoun s an

alloys are used in a wide range of applications. For

example, because of its ability to produce hardness at

high temperatures and its high melting point, tungsten

is used in many high-temperature applications. These

include light bulb, cathode-ray tube and vacuum tube

filaments, as well as heating elements and nozzles on

rocket engines.

e ig me ting point

a so ma es tungsten suit-

able for aerospace and

high temperature uses,

including electrical, heating

and welding applications,

notably in the gas-tungsten

arc-welding process (alsocalled TIG welding). It is

also used in electrodes, and

in the emitter tips of field

emission electron-beam

instruments, such as focused

ion eam ( an e ectron

microscopes. e meta is

a so use in -ray targets.

Tungsten chemical

compounds are used in

catalysts, inorganic pigments

and tungsten disulphide

high-temperature lubricants

which are stable to 500C.

Tungsten carbide (W2C or

WC) is produced by heating powdered tungsten with

carbon, and is one of the hardest carbides (with a melt-

ing point of 2,770C for WC, and 2,780C for W2C).

is an e cient e ectrica con uctor ( 2 ess

o) and tungsten carbide behaves in a manner very

imilar to that of unalloyed tungsten and is resistant

to chemical attack, although it reacts strongly with

chlorine to form tungsten hexachloride (WCl6).

Tungsten carbide is used to make wear-resistant

abrasives and cutters and knives for drills, circular

aws, milling and turning tools. In these applications,

tungsten carbide may be combined with cobalt, or

coated with titanium nitride or titanium carbide.

Because of the hardness and density of the ele-ment, tungsten finds use in heavy metal alloys that

are used in armament, heat sinks and high-density

app ications, suc as weig ts, counterweig ts, a ast

keels for yachts, tail ballast for commercial aircraft

and ballast in racing cars (including NASCAR and

Formula 1). In armaments, tungsten (usually alloyed

with nickel and iron or cobalt to form heavy alloys) is

used in kinetic energy penetrators as an alternative to

depleted uranium.

Tungsten may be used in cannon shells, grenades

and missiles to create supersonic shrapnel. Darts may

contain a high proportion of tungsten, allowing their

diameter to be smaller than those made of other

metals, and permitting tighter groupings. Fishing lures

an many s ing ies use tungsten ea ea s to

ink the fly rapidly. Some types of strings for musical

instruments are woun wit tungsten wire.

Tungsten, which has a similar density to gold, is

ometimes used in jewellery as an alternative to gold

or platinum (its hardness makes it ideal for rings that

will resist scratching, are hypoallergenic and will not

need polishing). This property is especially useful in

designs with a brushed finish.

In metal alloys, high-speed steel contains tungsten

(some tungsten steels contain as much as 18% W).

Superalloys containing tungsten are used in turbine

blades and wear-resistant parts and coatings.

ungsten pow er is use as a er materia in

p astic composites, w ic are use as a non-toxic

ubstitute for lead in bullets, shot and radiation

hields.

Since the elements thermal expansion is similar

to borosilicate glass, it can also be used for making

glass-to-metal seals. In electronics, tungsten is used as

an interconnect material in integrated circuits.

The oxides are used in ceramic glazes, and calcium/

magnesium tungstates are used widely in fluorescent

lighting. Crystal tungstates are used as scintillationdetectors in nuclear physics and nuclear medicine.

Other salts that contain tungsten are used in the

c emica an tanning in ustries. ungsten ronzes

(so-called due to the colour of the tungsten oxides)

are use in paints.

Source: Metal Bulletin

uropean free market prices ( o ars per

Presentation of WIDIA (hard-metal) at the 1927 Leipzig

fair by Friedrich Krupp AG. A new material was born which

revolutionised the tool industry. (This picture, published in

1944 in Engineering & Mining Journal, illustrates the many

applications of tungsten at that time.)

OVERVIEW

June 2008 Mining Journal special publication Tungsten 3

PROPERTY SUMMARY


4/16

DEPOSITSAll tungsten deposits are of magma

or y rot erma origin. A t oug

more than 30 tungsten-bearing

minerals are known, only two of

them are important for extraction:

wolframite (Fe, MnWO4) and

scheelite (CaWO4 . The concentra-

tion of these minerals in workable

ores is usually 0.3-1% WO3Wolframite is a general term

for iron and manganese tungstates

where the iron/manganese ratio ca

vary. A mineral with more than 80%

FeWO4 is called Ferberite and a

minera wit more t an n

is ca e nerite.

During cooling of the magma,

differential crystallisation occurs, an

scheelite and wolframite are often

found in veins where the magma

has penetrated cracks in the earths

crust. Most of the tungsten deposit

are in younger mountain belts, for

example the Alps, Himalayas and the

Pacific rim.

World tungsten resources have been estimated at

7Mt W, including deposits that have so far not been

proven to e economica y wor a e. t is suggeste

that 30% of the resources are wolframite and 70%

are scheelite ores. The former mineral contains

76.5% WO3, while the latter contains 80.5% WO

There are major deposits of these minerals in China

(with about 57% of the world total), Russia, Austria

and Portugal.

PRODUCTIONChina is today by far the largest supplier of primary

tungsten. The other principal producing countries are

Austria, Bolivia, Canada, Portugal and Thailand. Mineshave closed in recent decades in Australia, Brazil,

rance, apan, out orea, we en an t e .

The extraction of tungsten has several stages,

the ore being converted to tungsten oxide (WO2),

which is heated with hydrogen or carbon, producing

powdered tungsten. It can be used in that state or

converted into solid bars.

Ammonium Paratungstate (APT) is usually

calcined to yellow (WO ) or blue oxide (WO3-X, a

slightly substoichimetric trioxide with varying oxygen

content). The yellow or blue oxide can be reduced to

Canada

US

ChinaCIS

57%

12%

4%

17%

South

America

Other 6%

4%

Estimated world tungstenreserves 7Mt (W content)

China

CIS11%

83%

Other

6%

Supply in 2004: 56,700t(W content)

Non-ferrous alloys

ungsten was an important meta

during the Second World War

(as a raw material for the

weaponry industry) and, as the

main European source of the

element, Portugal was put underpolitical pressure from both sides.

WANTED

Ammonium aratungstate is t e main interme iate

pro uct an t e main tungsten raw materia tra e

in the market. (NH ) 0(H2W12O42 .4H2O

APT

tungsten-metal powder

in either pusher

urnaces (in w ic t e

pow er passes t roug

the furnace in boats) or

in rotary furnaces, at

00-1,000C.

Most of the tung-

ten-metal powder is

converted to tungsten

carbide (WC) by reac-

tion with pure carbon

powder (eg carbon black) at 900-2,200C in pusher

or batch furnaces, a process called carburisation.Tungsten carbide is, quantitatively, the most impor-

tant tungsten compoun . ecause o its ar ness, it is

t e main constituent in cemente car i e.

Scrap recycling is an important factor in the worlds

tungsten supply. It is estimated that some 30% is

recycled, and the tungsten-processing industry is ableto treat almost every kind of tungsten-containing

crap an waste to recover tungsten.

Sources: North American Tungsten Corp, ITIA

e ungsten ree, published in 1944 by Wah Chang

Compounds

Steel branch


OVERVIEW

4


5/16

LAST month, Geodex Minerals Ltdupgraded the resource estimate at its

Sisson Brook bulk-tonnage tungsten-

molybdenum-copper deposit in western

New Brunswick, Canada. The firms recent

exploration efforts in the area have been divided

etween isson roo an a more po ymeta ic group

of targets surrounding the former Mount Pleasant

mine. Measured and indicated resources at Sisson

Brook now consist of 328Mlb tungsten and 108Mlb

molybdenum at 0.025% W03 equivalent. Geodex is

working towards the completion of a pre-feasibility study

in September using these new resource numbers.

In May, Ormonde Mining plc announced that it

was focusing on bringing the Barruecopardo tungsten

project in Spain into production as soon as possible,

while it works on reducing costs at the Zarza

polymetallic project, also in Spain.

Initial studies at the Barruecopardo

mine in icate t e potentia to revive

operations wit an un ergroun project

from the existing open pit. Inferred

resources are estimated at 1.0Mt at an

average grade of 0.7% WO3, and the study

outlined a project producing 900t/y of

tungsten at a capital cost of 10-15 million.

The company hopes to complete evaluatio

of Barruecopardo by the end of this year and begin

production in the second half of 2009.

Also in May, AIM-listed Polo Resources Ltd

announced that it was chasing GCM Resources plc

with an offer valued at 60 million (US$118 million).

o o, w ic current y o s . o , sai t e

offer is consistent with Polos strategy of building a

significant and diversified portfolio. The companys

main assets are coal, tungsten and uranium holdings

in Mongolia.

Queensland Ores Ltd (QOL) owns 85% of

Wolfram Camp, Australias most historic producer of

significant quantities of tungsten, molybdenum and

bismuth. The mine is due to commence concentrate

shipments in July, marking Australias return as a

producer of tungsten concentrate.

QOL listed on the Australian Stock Exchange in2005, and redevelopment and construction work at

o ram amp egan in ovem er . it an ore-

feed rate of 150,000t/y, QOL is expected to produce

an annual average of 600t WO3 in a 65% wolframite

concentrate, and 250,000lb Mo in a 50% molybdenum

concentrate. In May, QOL announced a A$12 million

capital raising that would leave the company debt free

and with additional exploration funds to conduct

near-mine definition drilling to increase the size of the

current Wolfram Camp resource.

In March, Oriental Minerals Inc upgraded its

resource estimate for the Sangdong historical

tungsten-molybdenum mine in South Korea. The firm

had already released a resource estimate by consultantar rop ngineering, ut t e up ate inc u es urt er

drilling results and a different cut-off grade.

The previous cut-off grade was 0.15% WO3, ut

for the latest estimate it is 0.10% WO -equivalent.

Oriental Minerals said this cut-off grade represented a

recoverable grade, with recoveries of 70% for tungsten

and 80% for molybdenum.

Sangdong, about 170km southeast of Seoul, was

mined by underground means from 1940-92 at annual

rates of up to 600,000t of ore, and Oriental is

investigating the potential for an open-pit operation

to exploit the remaining resources.

The estimate included drilling results from 42 holescompete y rienta, p us un ergroun o es

y previous operators. ar rop is preparing a pre imi-

nary economic assessment of the development of an

open-pit operation at Sangdong, which is due for

completion in the September quarter.

At the time of the original resource estimate,

chief executive Willie McLucas said: This first report

illustrates the long-term potential of Sangdong as

one of the largest known tungsten deposits in the

world. Oriental also noted that the drilling results

contained notable base-metal grades in the

limestone sequence overlying the west part of the

Sangdong deposit.o nera s t announce a mai en

resource estimate in March for its Hemerdon Ball

tungsten-tin deposit in Devon, UK. The Perth-based firm

reported that SRK Consulting had estimated inferred

resources of 82Mt at 0.22% WO3 and 0.02% Sn (at a

Activity reportExploration and development of tungsten projects is taking place around the world

North American Tungstens Century mine in Canada

Clockwise from top left: Vital Metals; Tyhee Development Corps Giant mine; Paradigms White Rock project; Amantas Doi Ngom mine

5June 2008Mining Journal special publicationTungsten

EXPLORATION


6/16

.1 cut o . n 1 1, Amax a

outlined reserves of 0.183% WO

e atest resource ca cu ation was

based on the relogging of core and

re-assaying samples from 2,688m of

drilling (303 holes were drilled, totalling

21,846m). The mineralisation is hosted by

sheeted greisen veins and stockworks infresh and weathered granites, and

surrounding killas (shale) units.

At the end of last year, Wolf announced

that it hoped to bring the historical mine

back into production, saying the project

wou orm an exce ent p at orm or t e

company to ecome a major tungsten an

tin producer. Wolf acquired the property

at a cost of A$1 million and will pay an

annual rent of A$145,000 as well as a net

smelter royalty of 2%.

Wolf expects mining to begin at the site in three

years time, although the local authorities will

undertake a full review of the project to reassess its

environmental standards. The relevant planning

permissions were passed in 1986 and are still valid,

but will be revised in line with modern mining

practices. The mine, once operational, is expected

to pro uce , t y o tungsten over a mine i e

of 15-19 years.

Thor Mining plc entered into an off-take

agreement in March with CITIC Group for its Molyhil

tungsten-molybdenum project in Australias Northern

Territory. Under the terms of the deal, CITIC will take

100% of the life-of-mine production from Molyhil.

Thor said the agreement allowed the company to

move forward with finalising funding for the project,

for which final development deals are expected in the

current quarter.

In November 2007, Thor confirmed plans to

increase the planned scope of Molyhil, but admitted

that the new project would cost more. The review

confirmed a new reserve estimate (Thor had

published the new JORC-compliant resource of 3.7Mt

in September 2007) and increased the scale of the

project from a throughput of 300,000t/y to 400,000t/y

over a five-year period. But, estimated capital costs

were increased from the A$45.5 million outlined in a

feasibility study at the end of 2006 to A$63.3 million.

Thor noted that the higher capital costs includet e outrig t purc ase o mining equipment an

power-generation plant, and the purchase of the

processing p ant an equipment, an vi age an

infrastructure, rather than contracted services used

for the previous estimate. As a result, cash operating

costs for the new project were estimated at A$78/t,

compared with the previous A$94/t.

Amanta Resources Ltd is focused on

outheast Asia, and the Canadian companys assets

include three former tungsten mines near Chiang Mai

in northern Thailand. It is now over a year since the

mi itary coup in ai an , w ic was t e wor s

fourth-largest producer of tungsten prior to the

collapse of the tungsten market in the early 1980s

(with output peaking at 7,500t/y). Current production

is barely 100t/y, but Amanta is convinced of the

countrys potential. Drilling on the Mae Lama

property has shown significant mineralisation to a

depth of over 200m, according to the company, with a

trike length of over 700m at a typical width of 1.5m.

Malaga Inc has discovered new mineralisation at

its Pasto Bueno tungsten mine in northern Peru. The

mine is the only operating tungsten mine in South

America and the second largest in the Americas. Two

minera ise vein structures ave een i enti e ; one

on either side of the Consuelo vein that is currently

being mined. The new veins have been called Sauco

(on the west side) and Paraiso (east side). Near-term

exploration will focus on the Santa Marta vein, said

the company earlier this year.

In February, Largo Resources Ltd reported

wide zones of tungsten and molybdenum mineralisa-

tion from ten drill holes, totalling 1,875 samples, at its

Northern Dancer tungsten-molybdenum project in

the Yukon. Drilling is focused on upgrading and

expanding the resource of 242Mt grading 0.10% WO ,0.047% MoS2, including 36.8Mt grading 0.085% MoS .

n August , y ee eve opment orp

announced additional gold and tungsten results from

the Nicholas Lake main zone at its 100%-owned

Yellowknife gold project in Canada. Tyhee had

resampled all previously completed drill holes from

the Nicholas project to assess the potential for a

bulk-mineable resource.

The flagship project for Vital Metals Ltd is the

Watershed scheelite deposit in north Queensland,

150km northwest of Cairns. The project is at the

pre-feasibility stage, with a programme of in-fill drilling,

bulk sampling and metallurgical development in

progress. A resource estimate by RSG Global Pty foraters e in icate . t at an average gra e o

0.26% WO3 (based on a cut-off grade of 0.1% WO )

for a contained WO content of 56,300t. The

mineralisation at Watershed is open at depth and

along strike in both directions.

The company announced a year ago that it was

also drilling a target to the south of the main

deposit which identified four potential new zones of

cheelite mineralisation that could extend the limits

of the resource by 200m. In addition to Watershed,

ita eta s as t e rig ts to two ot er tungsten

occurrences at advanced stages of exploration:

Mt Alexander (100%-owned) and Mt Mulgine (where

Vital Metals is earning a 70% stake).

Also in Australia, Paradigm Gold Ltd owns the

White Rock tungsten and tin project in Orange, New

South Wales. The company announced assay results

one year ago, confirming a tin-rich halo surrounding

tungsten mineralisation at the project. At that time

Paradigm reported an estimated indicated and

inferred resource of 150,000t at an average grade of

.9% WO , based on historical drill results.

The wholly-owned Mactung deposit ofNorth

mer can ungsten orporat on

confirmed in March 2007 as the largest, undeveloped,

ig -gra e, tungsten s arn eposit in t e wor . e

deposit lies on the border between the Yukon and

Northwest Territories in Canada. A NI 43-101-

compliant evaluation by Scott Wilson Roscoe Postle

Associates had given an indicated resource of 33.0Mt

at an average grade of 0.88% WO3, and an inferred

resource of 11.3Mt at 0.78% WO .

These figures included 22.2Mt and 4.6Mt, respect-

ively, of ore with average grades of over 1% WO .

Based on these figures, which used data from 168 drillholes and a cut-off of 0.5% WO , the deposit contained

a com ine . mtu 3

North American Tungsten Corporation is already in

production at the Cantung mine in Canadas

Northwest Territories. The firm is expanding a newly

discovered zone down-dip of the West Extension

workings, where additional high-grade intersections

were announced earlier this month.

Galway Resources Ltd filed a NI 43-101

report by SRK Consulting one year ago for its

Victorio molybdenum-tungsten project near Deming,

New Mexico. Based on data from 71 holes (some

50,000m of drilling), the deposit contains over 65Mlb

of molybdenum and 57Mlb of WO3 in the indicatedcategory, an mo y enum an in

the inferred category. The cut-off grade was based on

molybdenum valued at US$12/lb, combined with

tungsten (WO3) valued at US$8/lb (yielding a rock

value cut-off of US$40/t).

Operations of North American Tungsten Corporation (above)

and Geodex (right)

EXPLORATION

June 2008Mining Journal special publication ungsten6


7/16

Amanta revives hai tungsten

Amanta Resources Ltd

1080-789 West Pender Street,

Vancouver, BC, Canada V6C 1H2

Tel: +1 604-730-9505

Fax: +1 604-648-8096

Email: [email protected] : www.aman aresources.com

xc ange: TSXV

Symbol: AMH

CONTACTS

A A esources, a pu ic y -tra e

Canadian company, focuses on the

acquisition and development of strategic

minerals in southeast Asia. Amanta

selects known, high-quality mineral dep-

osits with recognised potential as successful producers.

Prior to the collapse of the tungsten market in the

early 1980s, Thailand was the worlds fourth-largest

producer of the metal with peak production of

7,500t/y. Today, the country produces about 100t/y.

Thailands rich potential is directly linked to the

widespread occurrence of granitic intrusives of the

sout east Asian tin-tungsten e t. n t e s an

early 1980s tungsten concentrate was produced from

a large number of small mines and a few larger ones.

Recognising Thailands potential for tungsten

production, Amanta acquired a 100% working interest

in three former tungsten mines near Chiang Mai in

northern Thailand. The companys tungsten prospects

at Mae Lama, Mae Chedi and Doi Ngom were among

the larger producers of the 1980s, each outputting

several hundred tonnes of concentrate per year, with

peak production at Doi Ngom surpassing 1,000t/y.

MAE LAMA TUNGSTEN PROJECTt e t ree prospects, t e ae ama property,

southwest of Chiang Mai, offers the most immediate

opportunity for fast-tracking into production.

Mae Lama is a simple, wolframite-in-greisen-quartz-

vein eposit. e principa tungsten minera is

wolframite with associated minor scheelite. One main

vein and dozens of minor ones are known in the

licence area, many of which are mineralised, and the

reported head grade for previous mining operations

was 2% WO3Drilling has demonstrated that the Mae Lama vein

contains significant tungsten mi

of over 200m, and traced it alo

at a typical width of up to 1.5m

the exploration programme, thcompany uncovered a number

adits from the former mining

operations at ae ama, w ic

provi e irect access to t e tw

ignificant, mineralised vein

ystems found on the property.

Amanta geologists have

observed high-grade

mineralisation in situ. Based on

these observations, photograph

observed wolframite crystals in

Lama tungsten deposits are now considered to be

classic, high-grade, narrow vein deposits.

The firm is rehabilitating the former productionopenings to take channel and bulk samples from the

pro uction vein. Amanta p ans an eary resumption o

tungsten production, with the objective of developing

up to one million tonnes of ore and verifying the

reported production grade of 2% WO3. Production at

the mine could resume as early as mid-2009.

Assuming grade and tonnage are verified, Amanta

anticipates a production level of up to 2,500t/y of

high-grade tungsten concentrate, providing the

company with a significant revenue stream for up to

ten years. Producing a concentrate rather than a

finished product will ensure that both capital and

ongoing production costs are minimised.

OTHER TUNGSTEN PROJECTSThe Mae Chedi property is located northeast of

Chiang Mai. Tungsten ore (scheelite), associated with

tin (cassiterite), occurs in quartz veins and stockworks

in granitic rocks, and also in the contact zone

between these and carboniferous mafic intrusives.

isseminate minera isation occurs as ne patc es o

c ee ite-cassiterite in t e granite, an as veins an

veinlets up to 1m thick in the contact zone. A

reconnaissance programme has yielded grab samples

of up to 7% WO3At Doi Ngom, southeast of Chiang Mai, tungsten

ore is confined to silicified breccia zones in Permian

ent. The main tungsten mineral is ferberite,

s breccia fill and cement, and in fractures

. Ferberite is associated with fluorite and

allow reconnaissance drilling has yieldedades of up to 1.8% WO over a 1m

one drill hole plus a number of lower-

sections o up to m in ot er o es.

R PROJECTShe past four years, Amanta Resources has

ed an active exploration programme at

angu gold project in southern Thailand,

luding 4,500m of reconnaissance drilling,

h results of 1.4g/t Au to 3g/t Au. Amanta

ns to drill an additional 25,000m and has

commenced negotiations with a potential

joint-venture partner.

Amanta Resources recently received a 200km2

copper-exploration concession from the Lao Peoples

emocratic epu ic. Amanta wi o a

wor ing interest in t e uang amt a copper project,

ocate in uang amt a province.

Massive wolframite crystals in

Mae Lama production vein

Drilling at Mae Lama, December 2007 (above); massive wolframite crystals in Mae Lama drill core and grab sample (below)

Amanta Resources has a versatile, international

team of engineers and geologists from Canada, the

Netherlands, Thailand, Vietnam and the Philippines.

President and CEO Dr Gerald Wrightis co-founder of the Crew group of companies.

As ormer o Asia aci c esources, e was

responsible for developing that companys major

potash project in Thailand. Dr Wright holds a BSc

and a PhD (engineering) from Queens University,

Belfast, Northern Ireland, and he has been a PEng in

British Columbia since 1980.

Executive vice-president and chief

geologist Pieter Bakker holds an MSc in

mining and geology from the University of Delft,

Netherlands. He is a member of the Australian

Institute of Mining and Metallurgy and is a

chartered geologist in Thailand. He has also heldt e posts o c ie , minera resources section,

nite ations ESCA , ang o , executive vice-

president, Indochina Goldfields, and senior vice-

president and director of Bong Mieu Holdings.

PEOPLE

PROFILE



8/16

GEOLOGICAL MAP

8 June 2008 Mining Journal special publication Tungsten

Number of Projects

71 - 75 (1)

21 - 70 (1)

11 - 20 (2)

2 - 10 (8)

1 (12)

Nil

Tungsten projects reported to global nancial markets as of June 2008

This map has been complied in good faith by intierra from internal and external published

sources, but no representation is made nor warranty given (either express or implied) as tothe completeness or accuracy of the materials that it contains.

For continuously updated, more detailed information go to www.intierra.com.Intierra's copyright remains on all reproduction of materials from the map.

Copyright Intierra Ltd 2008

Map depicts the number of tungsten projects

reported to the North American, Australian,

South African and London markets as of June 2008.

Projects range from grass-roots exploration

plays through to operating mines.


9/16


GEOLOGICAL MAP

COUNTRYCanadaAustraliaUnited StatesMexicoThailandPortugalSpainVietnamBrazilChinaMongoliaPeru

TOTAL7463181573332222

BoliviaIndonesiaKyrgyzstanNamibiaNew ZealandPolandRussiaSerbiaSlovakiaSouth KoreaTanzaniaUnited Kingdom

1111111

11111

Note: China is the worlds largest

producer of tungsten, followed by Russia.


10/16

GEODEX Minerals Ltd has focused onthe tungsten-molybdenum-zinc-indium

uite of metals in western New

Brunswick, Canada, for the past three

years, almost alone in that regard.

Work has been divided between Sisson Brook, a

u -tonnage tungsten-mo y enum-copper eposit,

and a more polymetallic group of targets surround-

ing the former Mount Pleasant mine. The companys

management consists of a knowledgeable team of

geologists with extensive experience of mine develop-

ment from working with such companies as Kennecott,

Kamad Silver, Esso Minerals and Teck Corp.

The companys flagship project, Sisson Brook, is a

large, open-pittable deposit, located in the central part

of the New Brunswick. The deposit was drilled by

Kidd Creek from 1978-82, but the discovery was

abandoned due to severe metal price setbacks in the

mid-1980s. The deposit has been expanded by

eo ex since . e minera ise area exten s or

over 2km, encompassing at this point two northern

zones wit tungsten an copper, an a centra, more

significant zone of tungsten and molybdenum of over

300m wide. This Zone III has been the subject of

three resource estimates and a preliminary, economic

evaluation by Wardrop Engineering in November 2007.

The most recent NI 43-101-compliant resource

estimate (in June) upgraded Sisson Brooks resources

to measured and indicated status. The overall tonnage

increase ranged from 37% at the lowest thresholdlevel (0.025% WO equivalent) to 134% at the highest

(0.225% WO . The measured and indicated resources

now consist o tungsten an moy -

denum at 0.025% WO3 equiva ent. e company is

working towards completion of a pre-feasibility study

in September using these new resource numbers.

The project is currently on track to become the

lowest-cost tungsten mine in North America. The

deposit will have the benefit of low-cost, open-pit

mining in an easily accessible area and a willing labour

force. Concentrate will be trucked to the port of

Saint John, about two hours away on the Bay of Fundy

coast. The largest mine in the nearby Bathurst mining

district is due to close in mid-2010 after a 60-year life.This may have a positive impact on the supply of

equipment an a our or t e isson roo , an

encourage t e ew runswic government to

fast-track its development.

Sisson Brook has the advantage of unsurpassed

ogistics: it ies on crown an , w ic is a major

advantage for resource development; the area has

been partially logged; there is ready access from a

network of logging roads; a power line crosses the

property, and it is located close to several small

towns, which are serviced by a rail line and provincial

highway 107.

Construction and production would

create many needed employment

opportunities in New Brunswick. The

company estimates about 750 jobs for local

people during construction and 300 during

full operation of the mine, ranging from

truc ing to o ce a ministration. ree

ri s are present y on t e property

exp oring extensions to various zones.

Earlier this year, Geodex began

metallurgical, geotechnical and environ-

mental programmes to fast-track the

deposit into production. Wardrop

Engineering will be carrying out mine

design and grade-optimisation studies over the course

of the next few months on the project. In addition, the

firm will also be aggressively exploring seven other

properties in the area of the Sisson Brook mine site.Geodexs second major project is Mount Pleasant

est, a arge property ocate a jacent to t e ount

Pleasant mine, south of Fredericton in New Brunswick.

This mine, presently owned by Adex Mining Inc, was

operated briefly by Billiton in the mid-1980s, and it

contains deposits of molybdenum-tungsten and

tin-indium. Geodexs focus is on the indium potential

in the Mount Pleasant West camp and the companys

land holdings cover what is probably the worlds

largest area of premium indium-exploration targets.

Geodex is about to conduct a major exploration drill

programme at Mount Pleasant West.

UNGSTENApproximate y t ree-quarters o t e in-groun

resources at Sisson Brook are tungsten; a metal

mainly used in light filaments and metal-cutting tools.

Tungsten has a density greater than that of lead and

uranium, and its hardness is exceeded only by

diamonds. It is very inert and replaces lead inuses where it is exposed to the environment

(tungsten recently started replacing lead

in bullets).

Currently, tungsten output is all but

monopolised by China, which produces about

o t e wor s suppy (an urt er tari an

quota increases are anticipate to eep t e

scarce supply within China). Meanwhile, the

country has increased its domestic demand for

tungsten products, and it is now importing both

scrap and concentrate.

The price of tungsten is US$220-250/mtu for

APT (ammonium paratungstate), a refined form in

which the metal is usually bought and sold. Over

the next five years it is forecast that global prices

for APT will increase by 25% from its current

level. Current global consumption of tungsten is

81,200t/y (including 59,800t of new primary

pro uction . ver t e next ve years t e consump-

tion of tungsten is projected to rise to 109,328t,

requiring almost 82,000t of primary output and an

increase of 22,000t in new production.

No new, major tungsten production has occurred

outside China recently and is not expected until late

009. Barriers include the cost of mine development

and the limited availability of high-grade deposits. With

the high-grade tonnage at Sisson Brook recently

increasing, there is further potential to increase out-put at Sisson Brook and decrease the payback period.

ate or construction in an pro uction in

011, the Sisson Brook project will account for 5% of

the worlds current consumption of tungsten.

Geodex Minerals

Suite 450-800 West Pender Street

Vancouver, BC, Canada V6C 2V6Tel: +1 604 689 7771

Fax: +1 604 689 5528

E-mail: [email protected]

CONTACTS

Geodex Minerals aims to turn uptungsten at Sisson Brook project


ROFILE

10


11/16

ASTO Bueno is the only operating

tungsten mine in South America and the

econd-largest in the Americas. Since

the 1920s, more than 6Mt of tungsten

ore as een extracte rom t e mine.

In 2005, Malaga purchased 100% of Pasto Bueno from

its former owners for US$3.25 million and reopened

it the following year. Commercial production began in

2007, and 57,336MTU of tungsten concentrate was

produced at a cost of about US$120/MTU.

Malagas management team has modernised the plant

and mine, and are continuously seeking new ways to

optimise its operation. The company has identified three

main areas where significant progress could be

made to dramatically lower production costs.

ENERGY COSTSnergy requirements at t e asto ueno

mine are met y iese -powere

generating units. a aga as investe in

a hydroelectric power-generation project

at Pasto Bueno, which should be able to

supply all the companys energy needs by

the end of 2008. The scheme includes a

1.9MW hydroelectric power plant,

equipped with two Pelton turbines and

alternators, operating under a 170m waterhead and a

22.9kV high-voltage transmission line.

The company will be able to reduce its carbonemissions dramatically and save more than

, per year. e y roe ectric sc eme

is being built by Hidropesac SA, a subsidiary of

Malaga Inc, in partnership with Electrokraft SA, a

eruvian energy company, an

Emerging Power Developers SA,

a Swiss hydroelectric company.

IGHER ORE GRADESTungsten mineralisation at the Pasto

Bueno mine is present in veins,

tockwerks, lenses, etc. It is highly

variable a recent series of 57 samples taken from

three tungsten-bearing veins (Consuelo, Alonso and

Maria Luisa) had grades ranging from 0.45% to 8.02%

WO . Over the past 18 months, Malaga has foundmore than 40 new veins, of which 25 are major

tructures. ase on t e initia resu ts o an ongoing,

US$2 million drilling campaign that began in 2007,

a aga as initiate an un ergroun resource

development programme, involving the excavation of

new ga eries an inc ine s a ts, to gain access to new,

higher-grade zones for mining.

NCREASED CAPACITYhe company plans to increase its production capacity

from the current maximum of 250t/d to 500t/d by

mid-2009. Based on the current operating environ-

ment, increasing production capacity to 500t/d would

lower the unit production cost significantly. Finally, the

results of the drilling campaign and underground-

development programme will enable Malaga to define

new tungsten reserves, based on which it intends tobuild a new plant with a much higher milling capacity.

2005 Price of WO concentrate reaches US$180-200/MTU

Dynacor Mines (Malaga) buys 100% of the Pasto Bueno mine

2006 Malaga invests US$7.5 million to restart the mine and plant

Malaga signs three-year off-take agreement with Osram Sylvania

2007 March Malaga announces US$2 million exploration and drilling campaign at Pasto Bueno

November Malaga discovers new WO3 mineralised zonesecem er ase 1 o y roe ectric project comp ete

2008 January Phase 2 of hydroelectric power-generation project initiated

February Malaga announces discovery of new WO minera ise structures an veins

Malaga starts underground resource-development programme

A NEW BEGINNINGMalaga Inc

Canada:

2000 McGill College, Suite 510, Montreal,

Quebec H3A 3H3

Tel: +1 514 288 3224 Fax: 1 514 288 8179

Email: [email protected]

Peru:

Calle Luis Pasteur 1297, Lince, Limae : 44 ax: 4 4

e s te: www

CONTACTS

Malaga rejuvenates Pasto Bueno

1910s Surface outcropping WO3 discovered1920s-40s Informal small-scale mining

1940 Industrial mining begins

1980-83 Peak production years 70,000MTU/y

1984-93 Production falls; no new investments

1994 Avocet buys controlling interest from

antoa a ami y

1995 Avocet invests US$1 million to

increase pro uction

1998 WO3 concentrate production of

25,100MTU

1998 Avocet sells 80% interest back to

Santolalla family

1999-02 Production drops to 5,000MTU/y by 2002

2002 Mine closes and declares bankruptcy;

price of WO3 concentrate is US$45/MTU

ISTORY (1910-2002

Commercial production began at Pasto Bueno

in Apri

Sales o f WO3 concentrate (MTUs):

Q1 12,005 Q2 15,745

Q3 14,704 Q4 14,882

Total 57,336

Maximum milling capacity of 250tons/d

reached in June

Average year-round ore-grade milled 1%;

recovery rate 82%

Concentrate contains 75.46% WO3 and low

impurities (Malaga-grade concentrate)

2007 HIGHLIGHTS

PROFILE



12/16

ORTH American Tungsten Corpora-

tion (NTC: TSX-V) is a publicly-listed

ier junior resource company

t at is primariy engage in t e

operation, eve opment an

acquisition of tungsten and other related mineral

properties in Canada. The companys 100%-owned

Cantung mine and Mactung development project

make it one of the few tungsten producers with a

strategic development asset in the politically stable

Western world.

The basis of NTCs operations are made up of

three pillars of strength and achievement: the Cantungmine, the Mactung project and the Tundra pilot plant.

FIRST PILLAR CANTUNGThe first pillar is the wholly-owned Cantung mine,

located in Canadas Northwest Territories. The

underground mine, which is a primary producer of

tungsten concentrate , opened in 1962. After a period

of being on care and maintenance it is now back in

operation and currently produces approximately

300,000MTU of tungsten concentrate (WO ) per year

(2007 production: 286,031MTU).

Recent underground development and exploration

drilling has intersected high-grade zones, some of

which are proximal to existing mine workings.Selected high-grade results from recent drilling

inc u e: . t at . ; . t at 4.

North American Tungsten Corporation

1640-1188 West Georgia Street, Vancouver, BC

V6E 4A2, Canada

Tel: 1 604 684 5300 Fax: +1 604 684 2992

Mobile: 1 604 512 1400

Contact: Toni Williamson PhD,

corporate geologist

Email: [email protected] : www.na ungs en.com

CONTACTS

North AmericanTungstens three

pillars of strength

Key points to consider when considering the

vast size and grade of Mactung are:

Mactungs grade is significantly higher than

the average grade of currently operating

Chinese tungsten mines

actung is ocate in a poitica y-sta e

country wit transparent mining an

owners ip aws

At current tungsten prices, Mactung is worth

approximately US$6.1billion. To put this into

context of more familiar metals, this equates to

a 12Moz gold deposit (at US$650/oz) or an

80Mlb uranium deposit (at US$100/lb U O8)

One MTU is equal to 10kg of WO per

tonne, or 7.93kg of pure tungsten, and is the

standard weight measure used in the industry.

MACTUNG

t at . 4 ; . t at 4. ( - ;

33ft at 3.24% WO , including 16.5ft at 5.72% WO

(U-1244); and 33.3ft at 1.81% WO3, including 12.8ft at

3.14% WO3 (U-1245).

An independent, updated resource estimate is

expected to be complete in the latter half of 2008.

The existing indicated resource (NI43-101-compliant

from September 2006) comprises 3.0Mt grading

1.21% WO3 (3.5 million STUs); 734,000t of inferred

resources grading 0.74% WO3 (543,000STUs); and

approximately 1Mt of probable reserves grading

1.17% WO3 (1.2 million STUs).

SECOND PILLAR MACTUNGThe Mactung project is by far the companys largest

asset and second pillar because of its size, grade and

location. It is one of the largest known undeveloped,

high-grade, tungsten-skarn deposits in the world. The

project, located in the Yukon, is NI43-101 compliant,

with indicated resources of 33Mt grading an average

of 0.88% WO , and an inferred mineral resource

estimate of 11.3Mt grading 0.78% WO .

Wardrop Engineering Inc reviewed the historical

feasibility studies to produce an undated economic

assessment on Mactung in October 2007, after which

a feasibility study commenced on the project. Thean a e easi i ity is on target to e compete y

August 2008. At this time all permits will be filed,

inc u ing mining, environmenta an water permits,

followed by construction, with a target for Mactung to

be operational by 2012.

HIRD PILLAR TUNDRAhe third pillar of NTC is one that makes the

company vertically integrated in the tungsten

marketplace. The Tundra joint-venture pilot plant,

located near Minnesotas White Bear Lake, started

test production in late 2006 and has yielded

ammonium paratungstate (APT) of the highest grade

an purity (wire gra e . . e transaction to

Buffalo Tungsten, a major supplier of tungsten and

tungsten-re ate pow ers in t e wor mar etp ace in

Buffalo, US, was at a premium to the average Metal

Bulletin price for APT.

The pilot plant has the ability to produce the

highest-purity APT and composite material from

incredibly low-grade concentrate. It has recently had

an economic audit completed, which involved

additional testing and evaluation at a continuous plant

operational level, to aid in making a commercial andeconomically-viable decision. The APT produced has

exceeded expectations for trace-level impurities, thus

provi ing an en ance na A pro uct.

The location of the Tundra JV makes it eligible for

government incentives suc as iscounte e ectricity.

his is a bonus in minimising capital expenditure and

operating costs throughout the life of the plant.

Tungsten APT has a two-year average price of

about US$250/MTU, and prices have recently

remained above US$253/MTU on the back of

continued tight Chinese supply and robust demand.

With more industrial applications appearing on the

marketplace using tungsten, such as steel strengthen-

ers and drill bits, one specialist niche is potentiallyable to use up to 10% of the global supply of tungsten

in t e near uture. ungsten is eing use in ea -

replacement applications due to its densification and

non-toxicity attri utes, an it as a rea y een

uccessfully substituted for lead in fishing sinkers and

jigs, ballistics and x-ray machines.

June 2008 Mining Journal special publication Tungsten12


13/16

ORIENTAL Minerals is a

Canada-based exploration andmine-development company

with a diverse portfolio of

precious and base-metal projects

in South Korea. These include the Sangdong

tungsten-molybdenum mine and the Ogcheon

uranium project, as we as a num er o ot er

properties with significant known mineralisation

an exce ent regiona potentia .

The company has assembled a highly-skilled,

locally-based, bilingual technical team and a board

of directors with outstanding and relevant

experience. Oriental Minerals is the only

operating Western exploration company in South

Korea and it has significant early access to

available opportunities countrywide.

Oriental Minerals is focusing its primary efforts on

the Sangdong tungsten-moly project; historically, one

of the worlds largest producing tungsten mines. In

mi - t e company acquire ang ong, w ic was

closed in 1992 due to low commodity prices, and

restarted drilling in early 2007 to re-evaluate its

bulk-mining potential (only high-grade veins were

previously mined). Soon after, the company identified

a mineralised zone measuring 600m by 1,200m and

150-200m thick.

In March, Oriental Minerals released an NI43-101-

compliant resource estimate (based only on the first

42 holes drilled), which put the Sangdong resource at

12.7Mt of 0.32% WO (tungsten), and 0.06% MoS2(molybdenum) indicated plus 67.7Mt of 0.29% WO3and 0.06% MoS inferred. This estimate made

ang ong one o t e argest un eve ope tungsten

eposits in t e wor .

Since then, Oriental Minerals has drilled an

additional 37 holes (for a total of 79 holes drilled) and

completed a total of 20,000m of drilling. Four drill rigs

continue to turn at Sangdong, both infilling and

stepping out, as the company moves towards

completing its current 87-hole drill programme.

Wardrop Engineering is working on a preliminary

economic assessment (PEA), also known as a scoping

study, which should be completed by the fourth

quarter of this year. Included in the PEA will be the

results of Oriental Minerals last 45 holes of its

current drill programme, which should result in a

ubstantial increase in the resource. Furthermore,

environmental and metallurgical studies are ongoing.

e company recent y sent a g samp e or

metallurgical testing to SGS in Cornwall, UK.

Oriental Minerals intends to fast-track Sangdong

into production and is planning to commission a

feasibility study soon after completion of the PEA.

South Korea is an independent country with strong

US ties, and it is a key trading partner with Canada

and Australia. The worlds tenth-largest economy,

South Korea welcomes overseas investment, having

recently increased foreign-ownership allowance from

49% to 100%. The country has well-established,

workable mining laws, a locally-available trained mining

workforce and excellent logistics infrastructure.

out orea is centra y ocate in Asia, w ere t e

high industrial growth rates are driving demand for

tungsten an mo y enum.

The worlds largest producer, China, recently

restricted the export of these metals as they are

needed for its own consumption. Many observers are

forecasting increased consumption and global pricing

for tungsten and molybdenum, driven mainly by

growth in Asia. Both tungsten and molybdenum are

used as alloys in steel-making.

South Korea is home to some of the largest

consumers of tun sten and mol bdenum such as

Warren Buffets IMC Group) and they currently

import 100% of both metals for their use.Even though an updated NI43-101 is expected to

increase the size of the deposit, Oriental Minerals

already has a significant amount of tungsten and

molybdenum in situ. The current resource estimate

equates to roughly 522Mlb of tungsten (currently

price at approximate y an o

molybdenum (about US$32/lb).

o add to the above, Sangdong has a historic

deep molybdenum zone identified and drilled out

by the Koreans in the 1980s. It is estimated (non-

NI43-101-compliant) to be 120Mt at 0.14% MoS2,

including a high-grade section of 16Mt 0.40% MoS2

his deep moly zone has been drilled by Oriental

Minerals. However, the zone has not been included

in its current resource estimate. Its drill result from

this zone, though, returned 441m of 0.10% MoS

beneath 177m of 0.16% WO3 (hole SD-20).

All drill results so far confirm the companys original

t eory o t e u -mining potentia at ang ong. i e

there is a lot of work to do to prove up the resource,

an numerous stu ies t at wi nee to e compete ,

the future looks highly encouraging for Oriental

Minerals and its tungsten-molybdenum project.

Oriental Minerals is developing one ofthe worlds largest tungsten projects

Oriental Minerals

24th Floor, 1111 West Georgia Street

Vancouver BC V6E 4M3, Canada

E-mail: [email protected]

Website: www.orientalminerals.com

Contact: Spiro Kletas

Tel: +1 604 681 5755

Fax: +1 604 684 2990

Ticker: TSX.V:OTL

CONTACTS

PROFILE

13


14/16

Oining p c as p ans to

become a significant European

tungsten producer by fast-tracking the

development of its Barruecopardo

project in Spain. Ormonde recently

reported a threefold increase in the resource

estimate for the project, which now stands at 3Mt at

an average grade of 0.6% WO3, or 18,000t of contained

WO3. Engineering studies are now in progress to

facilitate an early production decision, with initial

tungsten production targeted for the end of 2009.

BACKGROUND

ocate in an istoric tungsten-pro ucing area in t e

Salamanca Province of western Spain, Barruecopardo

operate as an open-pit tungsten mine unti t e ear y

1980s. Like most Western tungsten mines, the oper-

ation was forced to close at that time due to the low

prices forced upon the market by low-cost Chinese

producers. With a production rate of up to 800,000t/y,

it was one of Europes largest tungsten mines,

producing a very high-quality scheelite concentrate.

Ormonde acquired the rights to Barruecopardo in

2005 as part of a joint venture with private Spanishcompanies over an extensive ground package in west

Salamanca prospective for both tungsten and gold.

roug un ing t e eva uation programmes on

arruecopar o an ot er prospects in t e permit

area, Ormonde currently has a 90% interest.

Located on a brownfield site, the project is well

served by existing road and power infrastructure and

it enjoys strong community support.

Ormondes drilling programme in 2006-07 initially

focused on high-grade tungsten veins occurring in the

northern extension of the main open-pit mine (in the

Filon Maestro mineralised zone). In late 2007 and

early 2008, initial drilling of the southern area below

the old open pit (targeted on the Filon Principal

zone, which has a known strike length of 850m)

demonstrated the potential for significant widths of

high-grade tungsten within a broader, low-grade zone.

Drilling has now defined a tungsten deposit atBarruecopardo with multiple mineralised zones.

The new resource estimate for the project, prepared

y in epen ent consu tants A o a , is t gra ing

0.60%WO3 in the JORC inferred category, up threefold

on the companys previous estimate. The scale of the

increase in the resource reflects the success of the

companys drilling programmes and the identification of

new resource zones along the known 1.5km strike

length of the Barruecopardo deposit.

There is extensive, additional resource potential as

the resource zones remain completely open along

trike and at depth. Additional resource targets

include the adjacent Valdegallegos area, where a single

Ormonde drill hole returned a high-grade tungsteninterval, and several other prospect areas within the

companys extensive groun o ing surroun ing

arruecopar o. urt er ri ing success in t ese areas

would add to the projects long-term resource base.

ORDER-OF-MAGNITUDE STUDY (JAN 08)

The mining assumptions in the study are for an initial

production rate of 200,000t/y, with underground

access and ore transport via a decline from the

urface. The steep dips, good ground conditions and

visually distinctive mineralised zones should make for

favourable mining conditions. The mining method

envisaged by the study is predominantly mechanised,

long-hole stoping with occasional use of shrinkagetoping. A minimum mining wi t o m was assume

for the mechanised mining method. e pro uction

rate may e increase post start-up w en exp oration

of the other zones is advanced and multiple access

points have been developed to all tungsten zones.

Scoping metallurgical testwork carried out last year

owe t at t e tungsten minera s are coarse-graine

and will be concentrated effectively by traditional,

low-cost gravity equipment. The order-of-magnitude

tudy therefore assumed that the tungsten ore would

be processed via a three-stage crushing, a rod mill for

coarse grinding, a gravity preconcentration circuit

(using a combination of jigs and spirals) and a final

clean-up circuit to produce a saleable concentrate.

The study assumed overall tungsten recoveries of0-80%, based on the results of the scoping testwork

and documentation from the historic Barruecopardo

open-pit operation. ese gra es an recoveries

would result in production of around 90,000mtu of

WO3 per year. Additional testwork is in progress to

facilitate detailed process-plant design.

FINANCIAL ANALYSIS

he studys preliminary capital-cost estimate is

10-15 million. This is for the development of an

underground decline mine, construction of a 28t/hr

processing plant and site infrastructure. Operating cost

estimates are 23-45/t, with figures varying depending

on the proportion of mechanised to shrinkage stoping.Based on these costs, with head grades varying from

. - . 3, an assuming tungsten concentrate

prices of US$180/mtu WO , the proposed 200,000t/y

operation at arruecopar o cou generate an annua

cashflow in the region of 5 million.

Ormonde Mining plc

Metges Lane, Navan, Co Meath, Ireland

Tel: +353 46 9073623 Fax: 353 46 9073654

Web: www.ormondemining.com

Contact: Fraser Gardiner-ma : [email protected]

CONTACTS

Detailed plan of the Barruecopardo project

production

ungsten minera isation at arruecopar o occurs

as scheelite and wolframite in quartz veins that

form part of a major granite-hosted vein swarm.

Ormondes drilling has shown that the vein

system has a total strike length of over 1,500m

and extends deeper than 200m. The system is

open both along-strike to the north and south,

and at depth. Veins generally have a NNE strike

and dip steeply to the east. Greisen alteration is

commonly associated with the quartz veins.

GEOLOGY

Barruecopardo open-pit tungsten mine when operational

June 2008 Mining Journal special publication Tungsten14


15/16

WOLFRAM Camp, Australiasmost historic producer

of significant quantities of

tungsten, molybdenum and

bismuth, begins production

and concentrate shipments in July, marking Australias

return as a pro ucer o tungsten concentrate.

Almost two decades after Wolfram Camps closure,

the A$30 million redevelopment (including new

crushers, screens and concentrators) will see the

transition of the mines new operator, Queensland

Ores Ltd (QOL), from explorer to a debt-free and

cashflow-producing tungsten and molybdenum-

concentrate exporter.

QOL holds an 85% interest in the project, with

Tropical Metals Pty Ltd holding the other 15%. Located

90km west of Cairns in north Queensland, Wolfram

Camp was first discovered in 1894. During a century

of sporadic activity, the camp produced over 10,000t

o wo ramite, moy enite an ismut concentrates.

QOL listed on the Australian Stock Exchange in 2005

(ASX: QOL), and redevelopment and construction work

at Wolfram Camp began in November 2007. This May

saw ore being fed into the new crushing plant in

preparation for first concentrate sales in July.

At an ore-feed rate of 150,000t/y, QOL is expected

to produce a yearly average of some 600t WO3 in a

65% wolframite concentrate and 250,000lb Mo in a

50% molybdenum concentrate. At current prices this

would provide the firm with revenue of A$20 million

per annum. The in-ground value of the ore (at current

prices) is about US$140t while operating costs are

estimate at A t o treate ore.

In May, QOL announced a A$12 million capital

raising that will leave the company debt free and with

additional exploration funds to conduct near-mine

definition drilling to increase the size of the current

Wolfram Camp resource.

QOLs managing director, Taff Greenwood, says it

has been a fascinating journey for Queensland Ores

in the past six months. Just as we were ticking all the

right boxes on construction, world financial and credit

markets started to deteriorate. To have raised

A$12 million at such a time I see as a vote ofconfidence in the project and the opportunities we

see or expansion.

The construction strategy of using prefabricated,

mo u ar components w erever possi e as assiste us

greatly. To deliver a mining project within six months is

very satisfying, he continues. After getting the mine

into production we will be able to focus on the longer Queensland Ores Ltd

Level 3, 201 Leichardt, Springhill QLD 4000,

PO Box 1078, Springhill QLD 4004, Australia

Website: www.qol.com.au

Email: [email protected]

Tel: (07) 3230 2000 Fax: (07) 3831 7663

ASX Ticker: QOL

CONTACTS

term. The options are now before us to look at ways

to increase the Wolfram Camp resources and plant

throughput. The longer-term possibility of trucking in

ore from the nearby Bamford Hill exploration

tenements, where we are earning a stake of up to

85%, is also an exciting thought.

Mr Greenwood adds that the real focus for the

next six-to-nine months will be to get to steady-state

production at Wolfram Camp and increase thein-ground resource towards 3Mt, so lifting the current

mine i e rom its nomina our years to, say, or

20 years. This would have a material impact on our

long-term planning and financial outlook.

MINE HISTORY

The hard-rock mines of the Wolfram Camp mineral

field have recorded a combined output of at least

10,000t of wolframite, molybdenite and bismuth

concentrates. Although eluvial and early underground

production is poorly recorded, the main periods of

production included 1908-20, 1967-72 and 1978-82.

Early surface workings led to the discovery of

high-grade quartz pipes, which were then worked byun ergroun means. ese pipes range rom ess

than 1m in diameter to 10m by 15m in plan, and had

down-plunge lengths often exceeding 100m. Lower-

grade mineralisation surrounds the pipes and has

been mined in some cases. However, the bulk of this

The Joint Ore Reserves Committee (JORC)-

compliant resources for Wolfram Camp

comprise: measured resources of 598,200t at

0.42% WO , 0.17% MoS2, 0.03% Bi; indicated

resources of 111,500t at 0.41% WO3, 0.16%

MoS2, 0.03% Bi; and inferred resources of

238,300t at 0.4% WO3 and 0.2% MoS2.

Once we have defined a larger resource

we can review our options for production

expansion, says Mr Greenwood.

QOL will also review its options for

am or i , ocate m sout o

Wolfram Camp, where the company is

earning up to an 85% interest. The area

covered by the Bamford Hill EPM has

previously produced significant quantities of tin,

tungsten, molybdenum, bismuth, silver and lead.

Bamford Hill is a fascinating prospect for us.

Do we develop and truck the ore to Wolfram

Camp or will a potential resource there justify

a stand-alone operation? Admittedly, these are

decisions for some time in the future, but they

highlight the flexibility we now have to look at

all our options to increase production in a

region t at or a century as een so ric an

productive of these specialty metals.

RESOURCE POTENTIAL

QOL has concentrate off-take agreements with

Citic Australia and the right to test the market

in the first year. There is an option to extend the

off-take agreement to four years.

OFF-TAKE AGREEMENTS

wer-grade mineralisation,

ic appears to exist in s eets

f variable thickness, was not

xtracte an as een t e

et of QOLs evaluation work.

Historical production has been heavily influenced

by commodity prices, increasing significantly during

World War I, but with a rapid reduction in production

oon after. Production rebounded in the late 1960s

and again in the 1970s before underground extraction

became increasingly difficult and costly. When

commodity prices fell in the 1980s the field became

uneconomic and mining operations ceased.

In 2004, QOL looked to revitalise Wolfram Camp

using mo ern mining an treatment met o s an ta e

a regional perspective to exploration.

The ore and waste is being mined by conventional

open-cut means from 1.5m-high flitches and then

hauled to a run-of-mine stockpile or waste dump by

40t, six-wheel-drive articulated dump trucks. The ore

is treated in a custom-designed treatment plant by a

combination of flotation and gravity techniques.

The current pit design is 650m long by 150m wide,

and the four-year mine plan envisages a strip ratio of:1, with 4.2Mt of waste required to be mined to

recover , t o ore or t e , t y mi ee .

expected find of Wolframite at

location of the mines first blast



16/16

www.vitalmetals.com.auPO Box 8243 Subiaco East ~ Western Australia 6008

Ph: +61 8 9388 7742 Fax: +61 8 9388 0804

ABN 32 112 032 596

Image: Aerial View of Watershed Camp and surrounding landscape

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