(Alliance News) - Ormonde Mining PLC on Friday said tungsten grades at the Barruecopardo mine in Spain have improved and there has been "significant progress" on waste stripping at the project.
Shares in Ormonde were up 19% at 2.62 pence in London shortly before midday.
Right now, Barruecopardo is in its first-year ramp-up phase. The mines it operated by Saloro SLU, with Ormonde's beneficial interest being 30%.
So far, ore grades have improved as mining at the southern starter pit has moved down into fresh ore, as well as closer to the main orebody. In addition, waste stripping at the east-wall cutback has progresses well and it is now expected that access to the main orebody will be achieved in the fourth quarter of 2019.
In order to fund the project, Saloro is finalising a 12-month loan facility of EUR10 million with Oaktree Capital Management.
Ormonde Chair Michael Donoghue said: "While still early in the ramp-up phase, it is encouraging to see that tungsten grades in the Mine have been improving, and that the waste stripping required to allow Saloro access to more continuous and higher grade fresh tungsten ore, in the main orebody, has seen significant progress. "
In addition, there has been a sale of large stocks of ammonium paratungstate, a precursor to most tungsten projects, "to a single Chinese tungsten company at market prices" via the now-closed Fanya metals exchange in China.
"The recent, successful auction of Fanya APT stocks, and reported tightness of available tungsten material for prompt delivery, are leading to improved market sentiment, which may prove both timely and positive for Saloro as it continues to ramp up operations," said Donoghue.