Tungsten Mining - Quarterly Report – June 2016
Tungsten Mining Limited (ASX:TGN) has focussed its exploration efforts in the June quarter on upgrading resources to JORC-2012 and planning drilling at Mt Mulgine. A program of re-sampling of historic core also identified new zones of mineralsation as well as extensions to previously reported intercepts. Drilling is expected to commence in the September quarter.
- Updated Resource estimates - In June 2016, Tungsten Mining reported updated Mineral Resource estimates for Mulgine Hill, part of the Mt Mulgine Project, located in the Murchison Region of Western Australia and the Big Hill deposit, located in the Pilbara Region.
The update of Mineral Resource estimates for Mulgine Hill and Big Hill concludes the data validation and consolidation activities following the acquisition of the Mt Mulgine and Big Hill Projects in December 2015. The work resulted in all Company reported Mineral Resource estimates being prepared in accordance with JORC-2012 guidelines.
Tungsten Mining now reports a resource inventory of 88.6 million tonnes at 0.18% WO3 and 186ppm Mo, representing more than 15.5 million MTU (metric tonne units) of WO3 and 16,480 tonnes of molybdenum at a 0.10% WO3 cut-off grade, making it one of the largest tungsten resource inventories held by an ASX-listed company.
- Core sampling program delivers encouraging results - Encouraging results achieved from the initial phase of a core sampling program at the Mulgine Hill deposit at the Mt Mulgine Project. The reported results, including 8.6m at 0.24% WO3 and 4.9m at 0.18% WO3, are considered to highlight the potential to add to existing intersections plus to identify new zones of mineralisation from the historical Minefields and ANZECO drilling.
- Mt Mulgine Strategic Development Plan - Tungsten Mining has developed a Strategic Development Plan for the Mt Mulgine Project directed towards the production of tungsten concentrate within 2 years. A staged development approach will be adopted, with the initial focus on the Mulgine Hill deposit while concurrently progressing metallurgical testwork and development activities on the significantly larger Mulgine Trench deposit. This strategy aims to produce early cash flow and ensure tungsten production is sustainable long term.
- Mt Mulgine drilling planned - During the quarter planning activities were completed and regulatory approvals obtained for a program of RC and diamond drilling at Mt Mulgine and metallurgical testwork program. Drilling is scheduled to commence in August 2016.
The results of the core sampling program and Q3 drilling program described above will be utilised in development planning and a further update of the geological model and Mineral Resource estimate for Mulgine Hill.
- Cash position - The Company’s cash position as at 30 June 2016 was $1.56m.