22 Jan 2013 07:00
22 January 2013
W Resources Plc
("W" or the "Company")
La Parrilla Tailings Project Approved by the Spanish Mining Authorities
First Production Expected H2 2013
W Resources (AIM:WRES), is pleased to announce that the La Parrilla tailings project located in southwest Spain, has been granted approval by the Mining Department of the regional authority of the Junta de Extremadura.
The La Parrilla tailings project is expected to be in production in H2 2013 with annual plant feed in the region of 330,000 tonnes and annual production anticipated to be 28,000 MTU Tungsten (W) and 26 tonnes Tin (Sn), which at the current tungsten and tin prices should deliver approximately €7 million per annum in revenue.
Construction of the processing plant located to the south east of the La Parrilla site will commence in Q1 2013 and capital cost is estimated to be €1.3 million, for which the board are currently evaluating financing options.
Mr Michael Masterman, Chairman of W Resources commented: "This is an important milestone for W, as the La Parrilla tailings project is on course to deliver tungsten production within 2 years of the Company acting on its new strategic direction. The Company has received one indicative offer for financing the La Parrilla tailings, which is currently under evaluation."
A detailed map of the La Parrilla site including the tailings project can be found on the Company's website at http://www.wresources.co.uk/projects/la-parrilla/.
Enquiries:
W Resources Plc | Grant Thornton Corporate Finance - Nomad |
Michael Masterman | Gerry Beaney / Melanie Frean / Jen Clarke |
T: +44 (0) 20 7193 7463 | T: +44 (0) 20 7383 5100 |
www.wresources.co.uk | |
Simple Investments - Broker | Gable Communications |
Andy Thacker / Nick Emerson | Justine James |
T: +44 (0) 1483 413500 | T: +44 (0) 20 7193 7463 |
www.simple-investments.co.uk | M: +44 (0) 7525 324431 |
About La Parrilla
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 is accessed directly from the highway along a 3km asphalt road and is serviced by electricity and water. The project comprises a tungsten mine and a tungsten tailings project. The historic mine resource estimated by SRK in 2008 is 36.0m tonnes at 0.09% WO3 making it one of the largest tungsten deposits in the western world.
The price of tungsten has increased rapidly over the last 3 years by more than double. The La Parrilla tailings deposit and tungsten mine development offer a low-cost, high-margin resource development opportunity for W Resources.
W Resources changed its name from Caspian Holdings plc in July 2012 to align with its revised strategy focussing on projects in the mining sector.
Technical information in this report has been prepared in accordance with the JORC Code and approved for inclusion by Mr Fernando de la Fuente, who is a "qualified person" in respect of the AIM Rules for Companies with over 37 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a 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.