20 Jul 2016 07:00
20 July 2016
W Resources Plc
("W" or the "Company")
La Parrilla Mine to operate at 90% higher production rate from Mid 2017
Initial mining from existing plant to start Q4 2016
W Resources Plc (AIM:WRES), the tungsten, copper and gold, exploration and development company with assets in Spain and Portugal, has completed the mine optimisation plan of the initial La Parrilla open pit mine.
Initial mining, plant commissioning and tungsten concentrate production and sales to customers will commence, as previously expected, in Q4 2016 using the existing on-site plant and facilities.
The results of the mine optimisation plan have been evaluated, leading W to start mining at a higher rate of 1.95 mtpa. The optimised mine plan completed over the last 4 months results in lower mine strip ratios, lower mining costs and increases tungsten and tin concentrate production rates. The processing plant capacity will now be twice as large as previously designed and construction is to be completed in mid-2017.
Summary of the key metrics:
Optimised Plan | Previous Plan | |
Design Feed Rate | 1.95 mtpa | 0.875 mtpa |
Tungsten Production (66% WO3) | 2,500 tpa | 1,300 tpa |
ROM Feed Grade W03% | 0.121% | 0.135% |
Please click for stages of development: http://www.wresources.co.uk/projects/la-parrilla/
Mining will commence in Q4 2016 in the FTM area around the high-grade Hole IRC1-40 using an upgrade of the existing concentrator and site infrastructure with existing approvals. During the next 12 months it is planned that the process plant which will operate at 1.95 mtpa will be installed and commissioned with production at the large plant ramping up from mid-2017.
Process plant engineering design at the higher mine production capacity of 1.95 mtpa is now advanced with preliminary engineering complete on the crusher, jig, mill and concentrate plant circuits. Ramp-up to full production is expected within 6-12 months from commencement of production. Based on initial work, W does not expect material increases in the total plant capital costs.
Grade control drilling and drilling of the lateral extension of the FTM mine to the north and south has commenced which could potentially increase size of initial pits and extend the mine life.
Michael Masterman, Chairman of W Resources commented: "A lean start-up of the FTM mine in Q4 2016 will get concentrate production underway allowing W to deliver a saleable product to customers. In addition to the significant improvements highlighted by the optimisation plan, there remains scope for further substantial increases in the size of the existing open pit mine. Trenching around the FTM south discovery Hole IRC1-40 has clearly shown bands of outcropping tungsten and tin in quartz veins to the south of the current pit area. These outcrops are expected to be high-grade, accessible with minimal waste movement and are not included in the current FTM pit develop plans outlined above. Drilling of these outcrop areas and lateral extensions has commenced and will be completed in July 2016.
"Financing discussions are advanced to reach the production targets for 2016, which we expect to be financed by initial customer off-take contracts and negotiations are progressing well with regard to financing the 1.95 mtpa development in 2017 by either a Joint Venture or a debt facility."
Enquiries:
W Resources Plc Michael Masterman T: +44 (0) 20 7193 7463 www.wresources.co.uk | Grant Thornton UK LLP Colin Aaronson / Jen Clarke / Harrison Clarke T: +44 (0) 20 7383 5100 |
SI Capital - Joint Broker Andy Thacker / Nick Emerson T: +44 (0) 1483 413500 www.sicapital.co.uk | Gable Communications Justine James T: +44 (0) 20 7193 7463 M: +44 (0) 7525 324431 |
About La Parilla
The La Parrilla project site is situated in the Extremadura region of southwest Spain, in the Provinces of Caceres-Badajoz, approximately 310 km southwest of Madrid. The site has exceptional infrastructure in place, which is accessed directly from the highway along a 3 km asphalt road and is serviced by electricity and water. The project comprises a tungsten mine and a tungsten tailings project. The mineral resource estimated by Golder in February 2016 at 0.04% WO3 cut-off grade is 51 million tonnes at 0.096% WO3 and 0.108 Sn, making it one of the largest tungsten deposits in the western world.
Technical information in this report and on the W website has been prepared in accordance with the JORC Code and approved for inclusion by Mr Fernando de la Fuente, is a 'qualified person' in respect of the AIM Rules for Companies with over 41 years' experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and an MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC.