LONDON (Alliance News) - W Resources PLC on Monday said the La Parrilla tungsten project in Spain can be developed in three stages with initial production set to start before the end of the year.
The miner said initial production, which will begin in late 2016, will be around 1,300 tonnes of tungsten concentrate. W Resources said it will cost around USD16.0 million to get the project producing.
Discussions regarding the financing of the first phase development are "advancing", according to the company.
"The wide availability of crushing equipment in Europe has enabled W to design the initial fast-track mine plant with higher installed equipment capacity whilst simultaneously achieving substantial cost savings. This allows the company to install larger capacity from day one that will allow production to be ramped-up by increasing the run hours of the installed equipment," W Resources said.
"The proposed three-stage configuration allows for low-cost incremental expansion to supply the expected steady growth in the European, US and Middle East markets," the company added.
Production will then be ramped up to 2,600 tonnes of concentrate a year, which will require an additional, "low incremental cost" of USD6.0 million in expenditure.
The mine ultimately will produce 5,000 tonnes of concentrate per year as the miner incorporates ore sorters and duplicates the project's processing plant.
W Resources did not state when it expects the second and third phases to be executed.
W Resources shares were up 0.2% to 0.511 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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