W Resources Increases Production Target at La Parrilla Mine in Spain

W Resources Plc (LSE:WRES) announced that it has completed the mine development study at its La Parrilla Mine in Spain, raising its production target by 150 percent compared to the previous mine design.

As quoted in the press release:

The comprehensive study has now been completed, delivering a significant opportunity for W to increase overall production, and the W project team proposes to develop the La Parrilla Mine in two stages: The Fast Track Mine (‘FTM’) will use the existing concentrator plant from La Parrilla tailings project and produce at a rate of 1,200-1,300 tonnes per annum of 66% WO3 concentrate and 110 tonnes of 52% tin concentrate from mid-2016; The full mine (‘FM’) will be developed in 2017/18 targeting an increase in production to 5,000 tonnes per annum of tungsten concentrate and 400 tonnes of tin, a 150% increase from previous design.

Project highlights:

• Large scale full mine production of 5,000 tonnes of 66% WO3 concentrate and 400 tonnes of 52% tin concentrate by 2018
• Highly competitive operating costs of US$121/mtu after tin credit
• Initial capital costs for the FTM of US$16.0m in 2016 with an estimated US$36.0m for development of the full mine in 2017/18
• High value and high return project after-tax NPV of US$124m and IRR of 70% for full mine development
• Development fully incorporates and leverages the existing tailing processing facility and infrastructure, which includes power grid connection, water, roads and services
• Incorporation of the latest ore sorting and jigging technology supporting a confirmed metallurgical recovery of 72% at low operating costs
• First production of tin concentrate boosting revenue, reducing unit tungsten costs and increasing tungsten concentrate grade

Michael Masterman, chairman of W Resources commented:

We are delighted to receive such a strong outcome from the definition study, which resoundingly confirms that La Parrilla is a highly competitive and a low capital intensity mine. The project’s competitiveness is underpinned by low open pit mining costs and coarse scheelite grain sizes which permits the high mass rejection of waste host rock during the crushing and pre-concentration stages. The early rejection of tungsten free rock reduces equipment sizes and power requirements aiding a low cost operating structure. The process design incorporates ore sorting technology as well as advanced jigging technology promoting strong metal recoveries confirmed by metallurgical testing. Our existing concentrator at La Parrilla is a proven operating plant, with minor modifications we aim to produce initial FTM production rates of 1,300 tonnes of tungsten concentrate per year which underpins our capability to deliver the project at low capital cost.

Click here to read the full W Resources Plc (LSE:WRES) press release.