just had this4 Sep 2018 18:05
W Resources sees good progress at flagship La Parrilla project as it unearths potential at São Martinho
The firm says earthworks for the processing mill at La Parrilla are on schedule for the fourth quarter, while it has also reported thick gold intersections with high-grades at São Martinho
04 Sep 2018
W Resources PLC (LON:WRES) has made good progress on two fronts in southern Europe over the past year.
Top of the agenda remains the La Parrilla tungsten project in Spain, where construction is ongoing after securing US$42mln in funding.
In June, the company reported concrete and civil works were complete with earthworks for the processing mill are on schedule for the fourth quarter.
“If we can get the crusher and the jig finished before Christmas then we’ve just got to finish off the concentrator and we have a very good run to get production up by the first quarter of 2019,” says Michael Masterman, W’s chairman.
La Parrilla’s low capital requirements and high quality mineralisation have always been key points in the project’s favour.
When built, the operation is set to become Europe’s largest tungsten mine and through an expansion phase to take production to 4,000 metric tonne units (mtu), it will be one of the few mines outside of China capable of producing more than 3,000 mtu per year.
Other mines are under development but in terms of the resurgent tungsten price, W’s timing could hardly be better.
A 2017 model assumed that the ammonium paratungstate (APT) price would be set at around US$230 per mtu this year, rising to US$245 in 2019 and US$288 in 2020.
In fact, the price has already shot up to well over US$300 mtu, bringing new optimism into a tungsten mining industry that had been lacking in confidence in recent years as a result of lower prices.
Thick, high-grade gold at São Martinho
But La Parrilla is not the only string to W Resources’ bow.
Recent drilling at São Martinho in Portugal showed thick gold intersections and high grades.
Highlights from the first seven holes of a 15-hole campaign were a 25-metre intersection of gold at 0.85 grams per tonne (g/t), with 3.35 grams in one section.
The group has now completed 2,000 metres of drilling at prospect with the aim to extend the current resources.
A maiden JORC resource in 2016 contained an Indicated Resource estimate of 3Mt at 1.04g/t gold, which equates to 111,987 ounces.
“Everybody understands gold, and a small growing gold deposit can provide very substantial value to shareholders” said Masterman, adding that the company is expecting a “significant increase” in resources at the project.
As of 3 September, W Resources shares trade at 0.42p, giving it a market cap of around £22.7mln, although estimates from City broker Northland Capital Partners have valued the company at 1.2p per share, a massive 185% upside which would value the firm at arou
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