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TUNGSTEN MINING NL — Capital/Financing Update 2018
Jul 26, 2018
65918_rns_2018-07-26_0b8874c0-f9b8-4f20-9120-cd76ed4374c8.pdf
Capital/Financing Update
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ASX Announcement
Formal Sale Agreement signed for Watershed Tungsten Project
The Directors of Tungsten Mining NL (ASX: TGN) (“TGN” or “the Company”) are pleased to advise that the Company has executed a formal Sale Agreement with Vital Metals Ltd (ASX VML) (“Vital”) for the acquisition of the Watershed Tungsten Project.
On 1 May 2018 the Company and Vital executed a binding term sheet (“Term Sheet”) for TGN to acquire a 100% interest in the Watershed Tungsten Project located in north Queensland (refer Figure 1) for a cash consideration of $15m. Following completion of due diligence and preparation of formal transaction documents, the parties have executed the formal Sale Agreement to give effect to the transaction contemplated by the term sheet. Completion is anticipated to occur on 9 August 2018.
Watershed is located 130km north of Cairns in a mining friendly jurisdiction, with granted Mining Leases and an Environmental Authority for an open-pit development. Vital completed a Definitive Feasibility Study (DFS) for the project in 2014.
The Watershed Project will substantially add to Tungsten Mining’s global resource inventory, which upon completion will stand at 176.9 million tonnes at an average grade of 0.14% WO3 and contained metal of 25.5 million metric tonne units (equating to 255,000 tonnes) of WO3 based on a cut-off grade of 0.05% WO3 (refer to attached Resource Statements).
-ENDS-
27 July 2018 For further information: Craig Ferrier Chief Executive Officer Ph: +61 8 9486 8492 E: [email protected]
Mark Pitts Company Secretary Ph: +61 8 9316 9100
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Tungsten Mining NL 97 Outram Street PO Box 517 T +61 8 9486 8492 E [email protected] ABN 67 152 084 403 West Perth WA 6005 West Perth WA 6872 F +61 8 9322 2370 W www.tungstenmining.com
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Competent Person’s Statement
The information in this report that relates to Exploration Targets, Exploration Results and Mineral Resources is based on, and fairly represents, information and supporting documentation compiled by Peter Bleakley, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Bleakley is not a full-time employee of the company. Mr Bleakley is a consultant to the mining industry. Mr Bleakley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Bleakley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears .
The information in this report that relates to Mineral Resources at Mt Mulgine, Big Hill and Kilba are extracted from the reports titled ‘Kilba Mineral Resource Update’ released to the Australian Securities Exchange (ASX) 30 January 2015, ‘June 2016 Mineral Resource Update and Core Sampling’ released to the ASX on 24 June 2016, and the report titled ‘Mulgine Hill Resource Update’ released to the ASX on 28 July 2017, all are available to view at www.tungstenmining.com. The information in this report that relates to Mineral Resource at Watershed is extracted from the report titled ‘Watershed Mineral Resources Restatement JORC Code (2012)’ released to the ASX on 4 July 2018 by Vital Metals Limited. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX announcements and that all material assumptions and technical parameters underpinning the estimates in original ASX announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original ASX announcements.
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About Tungsten Mining
Emerging Australian tungsten developer, Tungsten Mining NL is an Australian based resources company listed on the Australian Securities Exchange. The Company’s prime focus is the exploration and development of tungsten projects in Australia.
Tungsten (chemical symbol W), occurs naturally on Earth, not in its pure form but as a constituent of other minerals, only two of which support commercial extraction and processing - wolframite ((Fe, Mn)WO4) and scheelite (CaWO4).
Tungsten has the highest melting point of all elements except carbon – around 3400°C giving it excellent high temperature mechanical properties and the lowest expansion coefficient of all metals. Tungsten is a metal of considerable strategic importance, essential to modern industrial development (across aerospace and defence, electronics, automotive, extractive and construction sectors) with uses in cemented carbides, high-speed steels and super alloys, tungsten mill products and chemicals.
Tungsten Mining has three advanced tungsten projects in Australia: the Mt Mulgine Project in the Murchison region, the Big Hill Project in the Pilbara region and the Kilba Project in the Ashburton region of Western Australia
Tungsten Mining is implementing a staged approach to the development of the Mt Mulgine Tungsten Project, initially focussed on a low capital start-up from Mulgine Hill, directed at demonstrating a pathway to positive cash flow and the basis for large scale mining and processing operations at Mulgine Trench.
Tungsten Mining NL – Resource Inventory at 0.05% WO3 Cut-Off
Class Tonnes Grade |
Class Tonnes Grade |
Class Tonnes Grade |
Metric Tonne |
Mo(ppm) |
Contained Mo |
|---|---|---|---|---|---|
| WO3% | Units | Tonnes | |||
| Mulgine Trench (October 2014)1 | |||||
| Measured | - | - | - | - | - |
| Indicated | 400,000 | 0.14 | 50,000 | 400 | 150 |
| Inferred | 71,300,000 | 0.16 | 11,610,000 | 250 | 17,900 |
| Total | 71,700,000 | 0.16 | 11,660,000 | 250 | 18,100 |
| Mulgine Hill (June 2017)2 | |||||
| Measured | - | - | - | - | - |
| Indicated | 5,400,000 | 0.21 | 1,130,000 | 90 | 500 |
| Inferred | 4,800,000 | 0.14 | 670,000 | 130 | 600 |
| Total | 10,200,000 | 0.18 | 1,810,000 | 100 | 1,000 |
| Mt Mulgine (Total) | |||||
| Measured | - | - | - | - | - |
| Indicated | 5,800,000 | 0.21 | 1,190,000 | 110 | 600 |
| Inferred | 76,100,000 | 0.16 | 12,280,000 | 240 | 18,600 |
| Total | 81,900,000 | 0.16 | 13,470,000 | 230 | 19,100 |
| Watershed (July 2018)3 | |||||
| Measured | 9,500,000 | 0.16 | 1,520,000 | - | - |
| Indicated | 28,400,000 | 0.14 | 3,970,000 | - | - |
| Inferred | 11,500,000 | 0.15 | 1,720,000 | - | - |
| Total | 49,300,000 | 0.14 | 7,040,000 | - | - |
| Big Hill (June 2016)4 | |||||
| Measured | - | - | - | - | - |
| Indicated | 15,800,000 | 0.11 | 1,680,000 | - | - |
| Inferred | 22,700,000 | 0.09 | 1,930,000 | - | - |
| Total | 38,500,000 | 0.09 | 3,620,000 | - | - |
| Kilba (January 2015)5 | |||||
| Measured | - | - | - | - | - |
| Indicated | 5,700,000 | 0.20 | 1,150,000 | - | - |
| Inferred | 1,500,000 | 0.15 | 220,000 | - | - |
| Total | 7,200,000 | 0.19 | 1,370,000 | - | - |
| Total Resource Inventory | |||||
| Measured | 9,500,000 | 0.16 | 1,520,000 | - | - |
| Indicated | 55,700,000 | 0.14 | 7,980,000 | 10 | 600 |
| Inferred | 111,700,000 | 0.14 | 16,150,000 | 170 | 18,600 |
| Total | 176,900,000 | 0.14 | 25,500,000 | 110 | 19,100 |
Note: Totals may differ from sum of individual numbers as numbers have been rounded in accordance with the Australian JORC code 2012 guidance on Mineral Resource reporting.
1. Refer ASX (HAZ) Announcement 5 November 2014, “Hazelwood continues to increase tungsten resource”.
2. Refer ASX (Tungsten Mining) Announcement 28 July 2017, “Mulgine Hill June 2017 Mineral Resource Update”.
3. Refer ASX (Vital Metals) Announcement 4 July 2018, “Watershed Mineral Resources Restatement JORC Code (2012)”.
4. Refer ASX (Tungsten Mining) Announcement 23 June 2016, “Big Hill June 2016 Mineral Resource Update”.
5. Refer ASX (Tungsten Mining) Announcement 30 January 2015, “Kilba Mineral Resource Update”.
Tungsten Mining NL – Resource Inventory at 0.10% WO3 Cut-Off
| Class Tonnes Grade |
Metric Tonne |
Mo (ppm) | Contained Mo | ||
| WO3% | Units | Tonnes | |||
| Mulgine Trench (October 2014)1 | |||||
| Measured | - | - | - | - | - |
| Indicated | 400,000 | 0.14 | 50,000 | 400 | 150 |
| Inferred | 63,400,000 | 0.17 | 10,930,000 | 250 | 15,600 |
| Total | 63,700,000 | 0.17 | 10,980,000 | 250 | 15,700 |
| Mulgine Hill (June 2017)2 | |||||
| Measured | - | - | - | - | - |
| Indicated | 4,100,000 | 0.25 | 1,030,000 | 90 | 400 |
| Inferred | 3,000,000 | 0.19 | 570,000 | 110 | 300 |
| Total | 7,100,000 | 0.23 | 1,630,000 | 98 | 700 |
| Mt Mulgine (Total) | |||||
| Measured | - | - | - | - | - |
| Indicated | 4,500,000 | 0.24 | 1,080,000 | 120 | 500 |
| Inferred | 66,400,000 | 0.17 | 11,500,000 | 240 | 15,900 |
| Total | 70,800,000 | 0.18 | 12,620,000 | 230 | 16,400 |
| Watershed (July 2018)3 | |||||
| Measured | 4,400,000 | 0.25 | 1,110,000 | - | - |
| Indicated | 11,500,000 | 0.24 | 2,760,000 | - | - |
| Inferred | 4,700,000 | 0.26 | 1,230,000 | - | - |
| Total | 20,700,000 | 0.25 | 5,070,000 | - | - |
| Big Hill (June 2016)4 | |||||
| Measured | - | - | - | - | - |
| Indicated | 6,200,000 | 0.16 | 980,000 | - | - |
| Inferred | 5,300,000 | 0.13 | 700,000 | - | - |
| Total | 11,500,000 | 0.15 | 1,670,000 | - | - |
| Kilba (January 2015)5 | |||||
| Measured | - | - | - | - | - |
| Indicated | 4,100,000 | 0.25 | 1,040,000 | - | - |
| Inferred | 840,000 | 0.20 | 170,000 | - | - |
| Total | 5,000,000 | 0.24 | 1,210,000 | - | - |
| Total Resource Inventory | |||||
| Measured | 4,400,000 | 0.25 | 1,110,000 | 0 | 0 |
| Indicated | 26,300,000 | 0.22 | 5,860,000 | 20 | 500 |
| Inferred | 77,200,000 | 0.18 | 13,600,000 | 210 | 15,900 |
| Total | 107,900,000 | 0.19 | 20,570,000 | 152 | 16,400 |
Note: Totals may differ from sum of individual numbers as numbers have been rounded in accordance with the Australian JORC code 2012 guidance on Mineral Resource reporting.
1. Refer ASX (HAZ) Announcement 5 November 2014, “Hazelwood continues to increase tungsten resource”.
2. Refer ASX (Tungsten Mining) Announcement 28 July 2017, “Mulgine Hill June 2017 Mineral Resource Update”.
3. Refer ASX (Vital Metals) Announcement 4 July 2018, “Watershed Mineral Resources Restatement JORC Code (2012)”. 4. Refer ASX (Tungsten Mining) Announcement 23 June 2016, “Big Hill June 2016 Mineral Resource Update”.
5. Refer ASX (Tungsten Mining) Announcement 30 January 2015, “Kilba Mineral Resource Update”.