8/22/2019 Tungsten Scr
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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
scrap fromprocessing
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US
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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
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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
June 2008 Mining Journal special publication Tungsten
OVERVIEW
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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
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.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
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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
June 2008 Mining Journal special publication Tungsten 7
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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.
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June 2008 Mining Journal special publication Tungsten 9
GEOLOGICAL MAP
COUNTRYCanadaAustraliaUnited StatesMexicoThailandPortugalSpainVietnamBrazilChinaMongoliaPeru
TOTAL7463181573332222
BoliviaIndonesiaKyrgyzstanNamibiaNew ZealandPolandRussiaSerbiaSlovakiaSouth KoreaTanzaniaUnited Kingdom
1111111
11111
Note: China is the worlds largest
producer of tungsten, followed by Russia.
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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
June 2008 Mining Journal special publication Tungsten
ROFILE
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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
June 2008 Mining Journal special publication Tungsten 11
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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
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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
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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
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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
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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