LONDON (Alliance News) - W Resources PLC Monday announced its three-stage plan to develop the La Parrilla mine, a tungsten development based in north-western Spain.
W Resources said it plans to develop the tailings at La Parrilla and mine in a staged programme to maximise the use of existing infrastructure, keeping initial capital costs low and targeting a high rate of return on invested capital.
Stage one of the development was completed after the La Parrilla tailings were completed in March.
"A study is underway to define the mine plan, metallurgical process, infrastructure and capital and operating costs for stage two, the fast track mine," it said, with definition work expected to be completed by the end of 2014 and approvals achieved in 2015.
"Stage two is expected to be able to leverage off the extensive existing infrastructure including roads and power, the tailings plant operations and the already open mining benches adjacent to the current pit," said W Resources.
The overall scale and mine footprint for stage three, full mine development, will also be advanced during this period of time, it said. The current target design of stage three is aiming to produce 2,300 tonnes of tungsten trioxide per annum.
"A staged development, which is in line with our strategy, keeps initial mine capital costs low and provides a strong bridge from tailings to initial mining and then full scale mine development. Financing plans, including customer alliances and potential joint ventures, are proceeding in parallel with the time critical mine definition and approvals work," said Chairman Michael Masterman.
Shares in W Resources were trading down 4.14% at 0.772 pence per share Monday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.