Tungsten Mining NL - July Update 2014

Tungsten Mining NL (ASX: TGN) is an Australian mineral exploration company focused on the development and exploitation of tungsten projects. Following the establishment of a maiden JORC resource at its flagship Kilba Project in the Gascoyne region in WA, the company released the results of an in‐house scoping study which indicated a viable and economically attractive project. The project is on a granted Mining License and all environmental studies have been completed. Based on a tungsten price of US$440/mtu APT, average annual production of 154,000 mtu over a 7 year mine life, recovery of 80%, capital cost of A$56m and average LOM operating costs of US$212/mtu, the project NPV7 was $36m. Previous modelling by Breakaway confirmed a valuation in line with the Company’s estimate. A shortage of funding slowed down activities over the past 6‐9 months, but following the recent capital raising, drilling will re‐commence and full feasibility studies begin. Download the report for more information…