Based on the reserves of 29.7mln tonnes (mt) at 931 parts per million (ppm) tungsten trioxide (WO3) and 116 ppm tin (Sn), La Parrilla will have an eleven year mine life initially producing 2mln tpa (million tonnes per year) and rising to 3.5mtpa in 2020.
Average cash operating cost in the first 6 years of operation is estimated at US$90/ metric tonne unit (mtu) with production focused on high grade areas.
Michael Masterman, chairman, said a Final Investment Decision report (FID Report) should be completed early in the next quarter
The FID Report will provide more comprehensive details on the operating and capital cost estimates and development economics and has been compiled to at least pre-feasibility study according to the Competent Person.
"La Parrilla is a large, low cost, long life tungsten and tin mine with a mine life of over 11 years and a cost structure at the bottom of the world cost curve.
“The team is focused on commencing mining which will deliver high grades of tungsten ore averaging 1,220 ppm WO3 to the La Parrilla plant in the important early years of the mine development. These higher grades boost our production and cash flows and are part of a highly economic mine development.
"The resource and mine model review has highlighted the opportunity to further increase resources and reserves and lower mine strip ratios by targeted drilling of outcropping vein packages currently characterised as inferred in the resource models with an objective of converting these resources to indicated and measured."
The Mineral Reserves were prepared to JORC compliant standard by AYMA Mining in Seville and based on indicated and measured resources prepared by Golder Associates in March.
W Resources also raised £650,000 through a placing at 0.28p. Michael Masterman and Byron Pirola will also subscribe for shares on the same terms within the next few days.
Funds will be used for the completion of procurement and selective engineering on key plant items; final award of the crusher and concentrator packages and land access payment as per existing agreements with land owners.
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