2014 Tungsten Mining Production in Kilda

PERTH (miningweekly.com), the ASX-listed junior Tungsten Mining is hoping to start production at its flagship Kilda mine, in Western Australia, by the third quarter of 2014.

Company MD Paul Berndt said this week that Tungsten Mining was some four to five months away from taking a decision to mine at Kilda.

The Kilda project currently has a targeted resource of between 1.3-million and 1.4-million tons, at between 0.7% and 0.9% tungsten. Drilling was under way to declare a Joint Ore Reserves Committee-compliant resource at the project during the current quarter.

The resource and reserve work would be fed into an engineering pre-feasibility study, along with process test work, said Berndt.

Tungsten Mining has estimated a capital cost of some AUD 25-million to construct the project, as Berndt stated that most of the work required on the project would be conducted on a contract basis.

The company was also looking at options to reduce Kilda’s capital costs by introducing toll processers to build, own and operate a toll process for the Kilda ore.

The project was expected to have an eight-year life-of-mine, but Berndt noted that several exploration targets existed around the Kilba deposit, which could extend the project’s mine life.

Meanwhile, Berndt said that Tungsten Mining was on the cusps of signing a memorandum of understanding with supplier Global Tungsten and Powders (GTP) for a potential off-take agreement for the full supply of Kilda’s product.

The memorandum of understanding would include a financing option which could see GTP either arrange for or self-fund up to half of Kilda’s development costs.

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