Plymouth Minerals: Morille Tungsten Offers Low Cost Development Pathway

Plymouth Minerals has reported bullish assay data from multiple prospect areas within its brownfield Morille Tungsten Project in Spain. Early work programmes are indicating potential for annualised output of 100,000 MTU’s of ATP valued at US$38.8 million.

A first pass drilling programme seeking very shallow tungsten values across 6 of 16 historic mines contained within the Morille Project area may exceed earlier conceptual resource targets of 4 – 11 million tonnes grading 0.25% - 0.5% WO3. Historic tin production (poorly recorded) on site as well, but main economic value is tungsten.

The Morille Project area was historically mined by small groups of undercapitalised miners who typically operated within small tenements of typically less than 10 hectares and at very shallow depths. Production data show that that Morille produced high grade tungsten concentrate that was well received by global markets.

First pass drilling is indicating that historic mining boundaries were constrained by small tenement holdings as well as limited access to capital and that mineralisation extends well beyond mined areas.

Peer group tungsten miners and developers that are proximate to Morille are reporting cash operating costs that are as low as US$120 –US$130 per Metric Tonne Unit “MTU” of Tungsten Paratungstate (APT) or WO3, which currently sells for US$388 per MTU. This has resulted in current operating margins that are as high as 70% and feasibility studies for new projects with Internal Rates of Return as high as 52%.

High margins that are targeted are being driven by the strategic nature of tungsten and growing demand that is currently controlled by China with 85% of the market.

High margins at Morille will also be driven by the shallow nature of the resources and the simple and low cost gravity methods that are needed to produce high quality tungsten concentrate.


Tungsten Carbide Manufacturer & Supplier: Chinatungsten Online - http://www.tungsten-carbide.com.cn
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten & Molybdenum Information Bank: http://i.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Molybdenum News & Molybdenum Price: http://news.molybdenum.com.cn

• < Prev
• Next >