Carbine Tungsten (ASX: CNQ) will reach the hallowed state most explorers dream of as it books first revenues from the first consignment of bulk tungsten concentrate product from its Mount Carbine tailings recovery plant in Queensland.
Earlier this year the company secured a sales contract with Mitsubishi Group company, Mitsubishi Unimetals Corporation, at a higher agreed sales price than initially forecast.
The concentrate will be shipped later this week marking the start of cash flow generation for the company.
The 1,134 metric tonne units of tungsten have undergone inspection by representatives of Carbine Tungsten’s major customer Mitsubishi Corporation Unimetals.
The agreed sales price per metric tonne unit of product is more favourable than earlier predicted in the Feasibility Study.
The product grade is also much higher than previously anticipated, which means a potential increased income from sales should the grade be consistently achievable over the full production cycle.
Resource upgrade
Last month Carbine Tungsten increased the Mount Carbine Inferred Resource by 19% to 47.4 million tonnes at 0.131% tungsten for a total of 62,305 tonnes of contained tungsten metal at a 0.05% cut-off.
Indicating the potential to increase the Resource further, the company earlier in the year identified major strike extensions to the mineralisation to the northwest and southeast.
Production ramp-up
Carbine Tungsten continues to ramp up its tailings recovery production facility, previously enhancing its peak production throughput capability.
Mitsubishi Unimetals Corporation and a number of other key potential project participants are scheduled to visit Mt Carbine at the end of July to review the Feasibility Study and discuss funding options.
Carbine Tungsten intends to begin construction activities on its hard rock project in early 2013 and is targeting production of 250,000 metric tonne units per annum of high grade tungsten concentrate starting in 2014.
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