The Conversation (0)
W Resources capped off last week with the release of the interim findings of a strategic review of its operations. The review’s aim is to maximize the company’s focus on bringing the La Parrilla mine and Regua deposit into production.
Tungsten exploration and development company W Resources (LSE:WRES) capped off last week with the release of the interim findings of a strategic review of its operations. The review’s aim is to maximize the company’s focus on bringing the La Parrilla mine and Regua deposit into production.
Located in Southwest Spain, La Parrilla is made up of three mineral concessions covering 1,000 hectares. They hold both the past-producing La Parilla mine and tailings produced by the mine between 1968 and 1986. When W Resources brings the mine back into production, it’s expected to produce 2,300 tonnes a year at 63 percent WO3, delivering revenue of US$55 to $60 million. The tailings have a total volume of 1.2 million cubic meters, or 2.5 million tons, and are already generating revenue for the company.
By contrast, Regua has not been mined before, and has a resource of 4.46 million tonnes grading 0.308 percent WO3 at a cut off of 0.1 percent WO3. It covers 8 square kilometers.
W Resources is aiming to bring La Parrilla into production in 2016, and the review has allowed it to determine the course of action it needs to take to achieve that goal. Steps include:
- Gain environmental approval for La Parrilla (the company expects that to happen midway through this year).
- Test ore from La Parrilla and Regua at the tailings facility.
- Conduct infill drilling.
- Test metallurgical equipment.
- Install an electrostatic separator and test fine spirals for better operation.
The review has also left the company confident that it will be able to produce a high-quality tungsten product. It’s received positive feedback from tailings sales, and notes that La Parilla and Regua will ultimately have feed grades of 0.2 and 0.3 percent WO3, respectively, higher than the 0.06-percent feed grade for the tailings project.
In terms of how W Resources will pay for all of the work ahead, Friday’s press release indicates that the company has put in place a 225,000-euro finance facility with a Spanish bank; it also expects to receive VAT refunds of over 0.5 million euros during 2015′s second quarter. Furthermore, Hansource Investments recently bought into W Resources, and the miner is in the early stages of discussions with other strategic investors.
Tungsten in Spain
W Resources is certainly in good company in Spain, with other tungsten-focused companies in the area including Almonty Industries (TSXV:AII), Plymouth Minerals (ASX:PLH) and Ormonde Mining (LSE:ORM).
Ormonde recently received a mining concession for its Barruecopardo tungsten project, while Almonty, which specializes in acquiring distressed and underperforming tungsten operations and assets, has completed two turnarounds. Plymouth’s focus is on its Morille project.
At close of day Friday, W Resources’ share price was up 0.77 percent, at GBX0.262.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Related reading:
W Resources: Near-term Tungsten Production
Ormonde Mining Gets Approval for Spanish Tungsten Project, Joins Small Club