Rafaella Resources Releases Pre-Feasibility Study of Tungsten-Tin Open Pit in Spain

Rafaella Resources has released an advanced pre-feasibility study for its Santa Comba tungsten-tin open pit project in northwest Spain, supporting its plans to reopen existing underground operations.

The company said the combination of surface and underground mining offers "significant upside" in terms of economies of scale. This has already given the junior the opportunity to increase its reserves by 63 percent to 7.48 million tons grading 0.15 percent and containing 12,374 tons of tungsten.

The project was last produced in 1985, and the broader project has a near-surface exploration target of 25,000 to 112,000 tons of tungsten. General manager Steven Turner said the PFS has shown that its plans to redevelop Santa Comba are economically sound.

The pit-only scenario has a pre-tax NPV of A$95 million and an IRR of 33%. $53 million of capital costs will be recovered within two years of commissioning.

Net profit is estimated at $93.6 million based on reserves alone, but management has also studied the inclusion of an inferred resource of 445 tons, which could increase the margin to $115 million. The mine will operate at 1.3 million tons per year for seven years, with two years required for construction and commissioning. Three years will be required to bring production up to target levels.

Annual production from the two pits is expected to be 2,167 tons of calcium tungstate grading 63% tungsten. The product is expected to command a premium from buyers over tungsten concentrate.

One million tons per year of aggregate will also be processed from mine waste over a 15-year period. Rafaella Resources is currently completing minor aspects of the definitive feasibility study, including a number of metallurgical optimization studies.

Turner said the advanced PFS of the project in Spain is sufficient to support its application for designation as a strategic industrial project, which will help facilitate accelerated permitting of the open pit.

The underground operation at the open pit is based on inferred resources of 2,752 tonnes of tungsten and 662 tonnes of tin and has been permitted. It already operates a pilot plant at Santa Comba, processing high-grade stockpiles.

Assuming it can secure a pit permit in 2023, it aims to be in production by early 2026. Rafaella is also continuing to advance its development plans for its San Finx tungsten-tin open pit, given that only 10% of the mining licenses have been properly explored and that concurrent exploration work may result in increased reserves and resources.

Rafaella acquired the mine in January and San Finx produced 32 tonnes of wolframite concentrate and 35 tonnes of tin concentrate for sale in 2017, but development was halted due to the need to obtain water permits required to access deeper levels of the ore body. Rafaella Resources hopes to have San Finx in Spain back in production by 2024.

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