Development of Tungsten Ore Industry-II

Hazelwood has indicated it is targeting ferrotungsten production of 1500 tpa in 2014 and 2600tpa in 2015. Current feedstock for the plant is being obtained from a variety of international sources. Hazelwood has indicated it plans to develop the Big Hill deposit to provide feedstock for the Vietnam ferrotungsten project. The company also is evaluating its wholly owned Mulgine Hill and Trench deposits of its Mount Mulgine Project, 350 kilometres north-northeast of Perth as a potential additional feedstock source. Hazelwood purchased Gindalbie Metal's 30% interest in the deposits in the second half of 2013 and commenced an engineering pre-feasibility study in October 2013. Hazelwood released resource figures for Mulgine Hill in March 2011, which, based on a cut-off grade of 0.05% WO3, included Indicated Resources of 10.16 Mt averaging 0.16% WO3 and Inferred Resources of 5.35 Mt at 0.12% WO3 for about 18 000 tonnes of contained tungsten. Indicated Resources reduce to 2.23 Mt at 0.35% WO3, using a cut-off grade of 0.2% WO3. The company also indicated that 95% of the resource is within 100 metres of the surface. Recent drilling by Minjar Gold Pty Ltd, which has the gold rights for the Mount Mulgine project, resulted in significant tungsten intersections about 300 metres from previous drilling at the Trench deposit. Intersections included 70 metres at 0.167% WO3 and 72 metres at 0.134% WO3. Mineralisation at Mount Mulgine, which includes molybdenum, is thought to represent an Archean porphyry tungsten-molybdenum system (Mulgine Hill) and associated skarn (Trench), related to the Neoarchean Mount Mulgine Granite.

 

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