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W Resources at game changing moment, says chairman

That W Resources has now taken full ownership of the La Parilla mine ahead of production from the tailings project is a game-changing moment for the firm, says chairman Michael Masterman.
W Resources at game changing moment, says chairman

That W Resources (LON:WRES) has now taken full ownership of the La Parilla mine ahead of production from the tailings project is a game-changing moment for the firm, says chairman Michael Masterman.

The shares soared in early trade, rising almost 60%, after it announced that full title had now been transferred to the company. The company's shares are now trading up 12.38%.

The firm said La Parrilla will be a major tungsten mine and this decisive step will allow us to proceed with clear confidence and secure title towards development.

"With the tailings project on track to start first production later this year, we look forward to the next development phase of the mine."

Speaking to Proactive, Masterman said: "To be able to have a tailings project going very quickly into production plus a very large scale mine that we now have title on is a game changer."

The tailings part of La Parilla is what's left after ore processing between 1968 and 1986 and construction of the plant is now being constructed with production targeted for December.

Masterman says production from the tailings is a game changer because it takes the firm from development through to cash flow.

"We are looking at around EUR7mln of revenue in the start-up year (from the tailings)," he said.

He told Proactive that this cash will be used to finalise the acqusition of the La Parilla mine and go towards adding value to the resource.

Earlier, the firm said full title to the mine had an initial consideration of €900,000 and it will make further phased payments of €1.3 million in third quarter of next and of €500,000 12 months later.

The decision to move to full title ownership was taken by W following the extension drilling and initial evaluation of the mine and its development potential.

W Resources is sitting on one of the largest deposits outside of China. It holds a JORC compliant inferred reserve of 47mln tonnes and almost 40,000 tonnes of contained tungsten metal at a 0.09% grade.

Consultants Golder Associates also identified higher grade zones in the middle of, and adjacent to, the existing historic pit, which will be a focus for exploration going forward, the company said. There was a 0.04% cut-off grade.

Construction of the La Parrilla tailings facility is progressing on schedule with the pre concentration plant expected to be complete in October and the full facility in December.

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September 10 2018

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