Tungsten Mining (ASX:TGN) has begun an integrated Scoping Study for the Mt Mulgine Project in Western Australia, to evaluate a potential start-up oxide gold asset and staged tungsten development.
The 10-week program will also assess how it can be seamlessly integrated into a broader development of Mt Mulgine’s tungsten and molybdenum resources.
The study will assess capital and operating cost estimates, mine design, infrastructure, tailings management, and approvals, focusing on optimising sequencing between gold start-up and full-scale tungsten operations.
Outcomes will directly inform Tungsten Mining’s development strategy, with a dual-resource approach aimed at delivering early cashflow, reducing project risk, and supporting a long-term mining operation.
Chairman Gary Lyons says the study is a pivotal step in the company’s strategy as it will define how it can generate early cashflow from gold while building large-scale tungsten production.
“By sequencing development in this way, we aim to reduce project risk, maximise infrastructure synergies, and establish a clear pathway from start-up to a long-life operation,” Lyons says.
“Market conditions make this an ideal time to assess the gold start-up option, with gold prices trading near record highs and tungsten prices reaching record levels due to tight supply and strong industrial demand.”
According to Trading Economics, gold prices edged up to US$3,340 ($5,128) per ounce on Monday (18 August), but slayed close to two-week lows, as prospects of easing geopolitical tensions dulled the metal’s safe haven appeal.
The Mt Mulgine Project, located in the Murchison region of Western Australia, has a resource of 259 million tonnes @ 0.11% tungsten oxide.
Tungsten Mining is a mineral developer focused on primarily tungsten assets in Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Tungsten Mining
