Tungsten Mining NL (ASX: TGN) has announced a major Mineral Resource Estimate update at the Mt Mulgine Project in the Murchison Region of Western Australia.
The company reported that the updated Mineral Resource estimate confirms the significance of mineralisation at Mulgine Trench with a 189% increase in tonnes and an increase in contained metal of 97% in tungsten and 211% for molybdenum.
The updated estimate also highlighted the significance of accessory minerals with approximately 850,000 ounces of gold and 35 million ounces of silver associated with tungsten mineralisation. It may be noted that gold and silver accessory minerals were modelled for the first time.
The company said that a further resource update is planned for April 2020 to drive engineering studies.
Mt Mulgine project
Tungsten Mining’s 100%-owned Mt Mulgine Project is located within the Murchison Region of Western Australia, approximately 350km north northeast of Perth.
The project has two near surface JORC 2012 compliant Mineral Resources, the Mulgine Trench and Mulgine Hill deposits. The combined Mineral Resource of Mt Mulgine Project is 71.0 Mt at 0.18% WO3 (0.10% WO3 cut-off) and 238ppm Mo.
PFS for Mt Mulgine
In April 2019, the Company had commenced work on a Pre-Feasibility Study (PFS) for large scale mining operations at the Mt Mulgine Project.
It is anticipated that one of the outcomes of the PFS will be that a significant portion of the Mulgine Trench Mineral Resource will be classified as Indicated, supporting the declaration of a maiden Ore Reserve for the larger Mt Mulgine Project.
It may be noted that the previous Mulgine Trench Mineral Resource estimate was completed by CSA Global in November 2014 for tungsten and molybdenum within 0.10% WO3 domains.
Tungsten Mining drilling
In July 2019, the Company commenced a phased drilling program as part of the Mt Mulgine Project PFS with the objective of upgrading a substantial portion of the Inferred Mulgine Trench Mineral Resource estimate to Indicated status.
Two phases
The company said that the phase 1 of the program consisted of completing 40 metre spaced infill holes on existing sections and test possible extensions to known mineralisation.
TGN said that the program has progressed onto Phase 2 which involves infilling sections to a 40 metre spacing and to 18 October 2019, the Company had drilled 143 RC holes for 21,157m at Mulgine Trench. The data was handed over to Optiro for Resource estimation.
Assays were pending for 16 of the 143 holes at the time of handing over. An additional four HQ diamond holes for 321m were drilled to collect geotechical data and these were also assayed for tungsten.
Mineral Resource estimate for Mulgine Trench
Tungsten Mining reported an MRE of 207.0 Mt at 0.11% WO3 and 272 ppm Mo for Mulgine Trench.
reporting cut-off grade
The company announced that at a 0.05% WO3 cut-off grade, the Mineral Resource estimate for Mulgine Trench has resulted in a 189% increase in tonnes and an increase in contained metal of 97% in tungsten and 211% for molybdenum when compared to the Nov 2014 MRE.
In addition, gold and silver grades were estimated into the block model and this defined 850,000 ounces of gold and 35 million ounces of silver.
Updated MRE in April 2020
The Company reported that it has drilled an additional 59 RC holes for 10,904 metres since the drill data was handed over to Optiro. TGN said that an updated Mineral Resource estimate is expected to be completed in April 2020 on completion of all resource definition drilling.
Next steps
TGN reported that it is currently undertaking a Pre-Feasibility Study on the greater Mt Mulgine Project incorporating the Mulgine Trench and Mulgine Hill deposits.
Planned activities include resource definition and infill drilling of the Trench deposit; mine design and optimisation of the mining schedule, geotechnical studies and definition of maiden ore reserves; and metallurgical test work on the material from Trench.
Other planned activities include assessment of existing and exploration for additional ground water resources; process design and engineering for the tungsten processing plant and associated non-process infrastructure; and completion of native flora, fauna, aboriginal heritage surveys, and regulatory approval processes.
Management comments
Tungsten Mining’s CEO Craig Ferrier said: “This is an outstanding first step in the Mt Mulgine PFS and the results to date have exceeded our expectations.
The very substantial increase in contained metal highlights the enormous potential of the Mt Mulgine project and we look forward to providing the market with an updated estimate at the conclusion of the resource definition drill program to be completed in the first quarter of 2020”.