New ammunition application to benefit tungsten market

By Leia Michele Toovey- Exclusive to Tungsten Investing News

Holiday retail sales were worse than anticipated. The retail industry’s leading trade group blamed a deep recession, severe winter weather and five fewer shopping days for a 2.8 per cent drop in sales. The National Retail Federation had originally forecast holiday sales for the combined November-December shopping months to grow 2.2 per cent, which would still have been the weakest pace of gain in at least six years.  The jewellery market was hardest hit, luxury goods sales were down as much as 34 per cent. However, the new Tungsten jewelry market faired exceptionally well over this holiday season. Titanium-Jewelry.com, a leading online retailer of men’s wedding bands, tungsten rings, titanium rings and unique contemporary jewellery designs for men and women, announced today that its 2008 holiday season sales increased by 16 per cent from last year.  The company accounts for the rise as a result of “exceptional customer service” and continual advances in tungsten jewelry.  Tungsten designs are appealing to many for their unique style, and, they are far cheaper than traditional gold and platinum.  With everyone counting their pennies these days, the tungsten jewelry market may likely witness and exceptional year.

The Central Government of China has revised from the January 1 of 2009 the value-added tax to be imposed on imports of raw materials for production of ferroalloys. This revision is applied to 82 items of raw materials and the value-added tax has been raised from 13 per ton to 17 per tonne. Raw materials for the production of tungsten ore are included in this price hike. The value-added tax is also imposed on transactions of ores produced in China and this rate has been raised from 13 per cent to 17 per cent. This is expected to have a significant impact on already struggling companies in China.  There is already talk that these companies may appeal to the Chinese Government for tax breaks that will offset the fee hike.

Company news

A new company, Tundra Particle Diversified Industries LLC, will produce and market tungsten-polymer composite to be used as a replacement for lead in environmentally friendlier ammunition. The company has been formed by a joint venture between North American Tungsten Corp. (TSX.V:NTC), and Tundra Particle Technologies LLC of White Bear Lake, Minn., and Queenwood Capital Partners of Bloomington, Minn. Tundra Diversified Industries is negotiating to supply tungsten-polymer composite to Fiocchi Ammunition, aiming to hit the ballistics marketplace in the first quarter of 2009.The tungsten-plastic composite material is described as being non-toxic, as malleable as lead, and denser than lead and bismuth. As a result, North American Tungsten “will have a significant outlet for lower-grade concentrate” from its Cantung mine in the western Northwest Territories and Mactung development project in eastern Yukon. Under the agreement, North American Tungsten will provide Tundra Diversified Industries with 22,500 metric tons of tungsten concentrate next year, increasing to 225,000 tonnes by 2013 at “market-driven prices.”

Ormonde Mining has reported ‘excellent’ results from the last seven holes of its current infill drilling programme at its Barruecopardo Tungsten Project in Salamanca, Spain. The company says the results indicate that the deposit could sustain a much higher production rate than initially proposed. Ormonde says that prices of tungsten concentrates are expected to remain buoyant for the long term. The company has also decided to adopt a 400,000 tonnes per year production rate for the project, up from the previously 200,000 tonnes for the completion of technical studies at Barruecopardo. It said that these higher throughput levels should lead to greater returns on a future mining

Adex Mining Inc. (TSX.V:ADE) is pleased to announce the completion of a mineralogy characterization test program for the recovery and extraction of tungsten, molybdenum, tin and indium at the Company’s Mount Pleasant Mine Property in southwestern New Brunswick. The property hosts two mineralized zones: the tungsten-molybdenum bearing Fire Tower Zone)and the tin-indium bearing North Zone The mineralogy characterization test program was undertaken with the purpose of assisting the Company to develop and validate a metallurgical process for optimum metal recovery from the Properties .

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