Business
Major Tungsten Upgrade
Major Tungsten Upgrade.
About this update from Ormonde Mining Plc
[{"type":"text","content":"\n RNS Number : 6087M Ormonde Mining PLC 27 May 2010 \n\n27 May 2010\n \nOrmonde Mining plc\n(\"Ormonde\" or \"the Company\")\n \nBarruecopardo Tungsten Project, Spain\nDoubling and Major Upgrade of Mineral Resource\n \nOrmonde Mining plc announces that further evaluation work and a report by independent consultants CSA Global Pty Ltd (\"CSA Global\") have very substantially increased and upgraded the Mineral Resource estimate for the Barruecopardo Tungsten Project in Salamanca Province, Spain (the \"Tungsten Project\").\n \n \nHighlights\n \n· Tungsten Mineral Resource more than doubles from 5.2 Mt to 10.9 Mt (JORC compliant).\n \n· Critically, 6.5 Mt or 60% of the 10.9 Mt tungsten resource now classified in Indicated Mineral Resource category (JORC).\n \n· Major increase in tungsten resource will facilitate higher production rates and a significantly longer mine life.\n \n· Current evaluation work shows capital costs of €20-25 million and net operating cash flows of some €8 million per year at current prices and initial mining rates. Significant cash flow upside at enhanced production rates.\n \n· Transforms Tungsten Project economics underpinning management's focus on becoming a major Western World tungsten producer.\n \n \nKerr Anderson, Ormonde's Managing Director, said:\n \n\"This major increase in total resources and the upgrading of a substantial part from Inferred to Indicated Mineral Resource is the most significant development at Barruecopardo to-date and it transforms the projected economics of our Project. We are now working to quantify precisely the benefits this new resource will have for mine designs and economic projections at Barruecopardo, as these projections will play a critical role in the Company's ongoing discussions with parties interested in funding the Project. \n \nThis substantial upgrade in the tungsten resource, on-going evaluation work and progress on the permitting process are being achieved at a time when the price of tungsten is rising significantly due to supply constraints. Barruecopardo continues to demonstrate its unique capacity to develop into a low capital cost, high grad...