Tungsten Mining (ASX:TGN) is advancing its Mt Mulgine Tungsten Project in Western Australia to a Definitive Feasibility Study following the completion of a Prefeasibility Study (PFS).
The study demonstrates ‘strong’ economics, including a pre-tax net present value of $6.82 billion and an internal rate of return of 55% under Fastmarkets forecast pricing. The figures are based on an 8 million tonnes per annum (tpa) operation requiring $870 million in initial capital.
Targeting first production in Q2 2029, Mt Mulgine features a 21-year mine life producing an average of 5,653 tonnes of tungsten concentrate annually alongside molybdenum, copper, gold, and silver by-products.
The PFS positions Mt Mulgine as a potential low-cost producer with all-in sustaining costs of US$127 ($177.20) per metric tonne unit. Under spot pricing scenarios, the project returns a pre-tax net present value of $15.55 billion with an internal rate of return of 113%.
According to Tungsten Mining, the study further confirms potential for the largest, lowest-cost tungsten development positioned to address “a structurally undersupplied tungsten market”.
The open pit operation will extract 173 million tonnes (Mt) of ore at 0.11% tungsten trioxide, 0.03% molybdenum, and 0.04% copper over the mine life. The company notes an updated probable ore reserve of 144Mt supports the production target.
The processing plant will produce tungsten concentrate grading 50% tungsten trioxide (WO3), molybdenum concentrate at 50% molybdenum, and copper concentrate containing gold and silver credits.
Tungsten Mining also evaluated an expansion case to ramp production to 16 million tpa from 2034, requiring an additional $420 million in capital and delivering a pre-tax net present value of $8.20 billion.
The company says drilling is currently underway to test an exploration target of 165–200Mt at 0.10–0.12% WO3, with 130 reverse circulation holes across 40,000m planned for completion in Q1 2027.
Tungsten Mining plans to start the DFS in September, targeting completion by Q3 2027 ahead of a final investment decision in Q1 2028.
Tungsten Mining is a developer focused on tungsten and critical minerals projects.
Write to Paula Fabe at Mining.com.au
Images: Tungsten Mining
