LONDON (Alliance News) - W Resources PLC Tuesday said it has completed a six-month mine development study at the La Parrilla Mine in Spain.
W Resources said the fast track mine will use the existing concentrator plant from the La Parrilla tailings project to produce 1,200 to 1,300 tonnes of 66% tungsten trioxide concentrate per year, and 110 tonnes of 52% tin concentrate from mid-2016.
The full mine will be developed in 2017-2018 and will aim to produce 5,000 tonnes of tungsten concentrate and 400 tonnes of tin per year, which the company said is a 150% increase from its previous design.
W Resources said the initial capital cost for the fast track mine will be USD16 million in 2016, while development of the full mine will cost around USD36 million. It said operating costs are expected to be USD121 per metric tonne unit.
"We are delighted to receive such a strong outcome from the definition study, which resoundingly confirms that La Parrilla is a highly competitive and a low capital intensity mine. The project's competitiveness is underpinned by low open-pit mining costs and coarse Sheelite grain sizes which permits the high mass rejection of waste host rock during the crushing and pre-concentration stages. The early rejection of tungsten free rock reduces equipment sizes and power requirements aiding a low cost operating structure. The process design incorporates ore sorting technology as well as advanced jigging technology promoting strong metal recoveries confirmed by metallurgical testing," Chairman Michael Masterman said in a statement.
Shares in W Resources were trading up 4.1% at 0.328 pence Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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