W Resources PLC (AIM:WRES) said its wholly owned subsidiary Iberian Resources Portugal (IRP) has received the Régua mining licence from the Portuguese Directorate General for Energy and Geology (DGEG), clearing the way for an environmental study which is expected to be submitted in the final quarter of this year.
Approval of the environmental study will allow the release of the underground mining works authorisation, which is a key condition for the commencement of mining, the tungsten, tin and gold mining company said in a statement.
Régua is a high-grade, development-ready tungsten project with low capital cost and a mineral resource of 4.47 Mt at a grade of 0.27% WO3 [tungsten trioxide], including an indicated resource of 3.74 Mt at a grade of 0.28% WO3 and an inferred resource of 0.72 Mt at a grade of 0.21% WO3.
Trial mining operations at Régua commenced in early March 2020, but had to be halted due to COVID-19 restrictions and the expiry of the trial mine licence in June.
Assuming no further COVID-19 impacts, production is anticipated to begin in the second half of 2022, W Resources said.
WATCH: W Resources' announce the Régua mining licence and updates on record tungsten recovery rates
Annual production is estimated to reach circa 1,000 tonnes of tungsten concentrate per annum, increasing the company's total concentrate production, reducing average costs per tonne and increasing sales.
Michael Masterman, chairman of W Resources, commented: "This is a long awaited milestone for Régua and we look forward to updating shareholders on our progress. With production expected to commence in H2 2022 we will transition to having two active tungsten mines, further increasing production, revenue and profitability."
The group also announced that the Assumar gold prospect exploration licence has now been granted at the CAA Portalegre project.
The 267 km2 area, which is located adjacent to the trial mining licence area of São Martinho gold project, is believed to include potential extensions of the known mineralised system and new potential areas.
The application of the São Martinho gold project trial mining licence is still being reviewed by the DGEG and approval is expected in the near future, W Resources said.
Shares were 0.76% higher at 6.65p at midday.