Business
Tungsten Review
Tungsten Review.
About this update from Ormonde Mining Plc
[{"type":"text","content":"\n RNS Number : 0298Q Ormonde Mining PLC 28 July 2010 \n \n\n28 July 2010\n \nOrmonde Mining plc\n(\"Ormonde\" or \"the Company\")\n \n \nBarruecopardo Tungsten Project\nOptimisation Work and Independent Review \n \n \nThe Board of Ormonde is pleased to advise that, subsequent to the major Tungsten Mineral Resource upgrade published for Barruecopardo on 27 May 2010, and the capital raising announced on 30 June, it has commissioned independent consultant, Scott Wilson Mining (\"Scott Wilson\"), to carry out engineering and economic studies on Barruecopardo to quantify the benefits of the increased resource to the project economics. \n \nAt the project site, infill drilling, intended to enable final optimisation of initial years mining production, is on schedule to recommence in August.\n \nBarruecopardo, which is already a recognised high grade, low capital cost, tungsten asset situated close to the major markets for Western processors and manufactures of tungsten products, is now progressing against a backdrop of rising world tungsten prices, towards taking its place as a central part of the Tungsten Industry in the Western World.\n \n \nKey Points\n \n· On 27 May 2010, the Company announced a total JORC compliant resource of 10.9 million tonnes grading 0.45% WO3 (tungsten trioxide), equating to 4.9 million metric tonne units (\"mtu\")(1) or 49,000 tonnes of contained WO3. Of this resource, 6.5 million tonnes has been classified in the Indicated category, with the balance of 4.4 million tonnes being in the Inferred category. \n· An independent review of the project with engineering and economic studies based upon this increased resource, including preparation of cash flow projections for a mining operation, has been commissioned from Scott Wilson, with results to be reported after the summer. \n· Infill drilling to enable final optimisation of initial years mining production is on schedule to commence at the site in August.\n· World Tungsten prices continue to rise(1) and projections from the EU Commission in June 2010(2) suggest probable supply shortages of the metal to the EU into the future.\n· Discussions with several parties to advan...