The La Parrilla tungsten project in Spain is capital efficient and can be quickly scaled up to higher production rates at low costs, according to new engineering work, said W Resources PLC (LON:WRES).
The studies in Germany show it can be executed in three phases.
Output will start at the "fast-track mine" at 1,300 tonnes per annum (tpa) of concentrate on track for late 2016, at an estimated cost of US$16mln.
This will then be scaled up to 2,600 tpa at the low incremental cost of US$6mln.
The final full mine will incorporate ore sorters and duplicate the processing plant to expand the capacity to 5,000 tpa.
Crushing equipment is widely available in Europe, which means the initial plant can house higher installed equipment capacity whilst simultaneously achieving substantial cost savings.
The final expansion to 5,000 tpa of concentrate requires duplication of the pre-concentration and final concentration circuits.
Michael Masterman, chairman of W Resources told investors: "La Parrilla is a very capital efficient project that can be quickly scaled to significantly higher production rates at low incremental expansion costs.
"Plans remain on track to complete the FTM in 2016.
"Within this design we have embedded the expansion capability to double capacity to 2,600 tpa through oversizing of the crusher and jigs circuit.
"The scalability of the project adds significant flexibility, NPV and optionality to La Parrilla. Development work is progressing on track and financing discussions for the first phase are advancing."
Shares added 3.92% to 0.53p on the day..