International tungsten operations continue to advance
By Leia Michele Toovey- Exclusive to Tungsten Investing News
The world is waiting to see what will happen to metal prices when the Olympics close. Tungsten prices are no exception.
As a precious metal that has 65 per cent of its global supply harvested from one country, the price of tungsten can be buffeted when that country, China, makes the slightest move. Over the past, there have been two major spikes in the price of the metal. The first was when China cut back its exports, sending the price soaring by over 200 per cent in a three-month period. The second, more recent occurrence, was when China hiked export taxes as domestic demand for the metal skyrocketed. So why have exploration activities not been pursued elsewhere? Well they have, but not to the same degree as in China.
Mines in other parts of the world have offered shareholders an unbelievable return on investment. One of the largest tungsten mines in the world is located in Portugal. The 114-year-old Panasqueira mine is located in the Estrela Mountains (Serra da Estrela), about 8 km northwest of the village of Silvares. Tungsten is an essential component in military equipment, and this Portuguese mine earned some fame during World War II when the country was both publicly criticized and privately admired for allowing this strategic mineral to be exported to both Axis and Allied powers. Efficient mechanization of the mine has ensured continuing productivity. Purchased by Primary Metals five years ago, the Panasqueira tungsten mine is now producing 3,000 tons per day.
In March 2007, Primary Metals announced that the total proven and probable reserve estimate had increased to 2.43 million tonnes with a grade of 0.243 per cent WO3 compared to the 2006 estimate of 1.39 million tonnes with a grade of 0.233 per cent WO3. This showed an increase of one million tonnes, together with a small increase in the grade of the reserves. These new estimates, combined with the indicated resource estimates, total 5.13 million tonnes, enough to process for 8.5 years at the current operating rate of 600,000 tonnes per year, assuming tungsten prices stay near current levels.
When Primary Metals made a decision to become involved in raw materials commodities, the most underappreciated metal was tungsten. Following acquisition of Panasqueira in 2003, the next two years were challenging for Primary because of low tungsten prices. In 2005, when the Chinese reined in their supply for domestic uses, tungsten prices around the world skyrocketed and Primary Metal’s shares started a steep climb gaining 1500 times their post-ascent value.
North American Tungsten Corp is the oldest North American tungsten operation. It has survived on lower quality ores for years, but last year, reports surfaced that the mine was about to run out of supply. North American Tungsten then moved to step up exploration and just this past spring came out with drill results at their 100 per cent owned Mactung property. They have continued to intersect High Grade Ore at Cantung Including 22Ft at 2.98 per cent WO3 (tungsten trioxide), 20Ft at 3.31 per cent WO3 and 15Ft at 4.34 per cent WO3. Further geotechnical and definition drilling as well as environmental surveys have been initiated in the area for a summer work program budgeted at C$3.2 million. Just this week, the company announced that crew and equipment had been mobilized in support of their 2008 summer program.
New Jersey Mining Company (NJMC:OTCBB) announced that its Idaho Ramp, which is being driven in development efforts at Golden Chest mine near Murray, Idaho, has intercepted a high grade tungsten vein. A two-meter chip sample across the vein assayed 8.36 per cent WO3. Calculated at current prices, at the sample location, the vein has a gross value of about US$1,800 per tonne. More samples will be collected from the vein by diamond drilling and crosscutting in order to fully assess the economic potential. The Golden Chest mine has produced tungsten ores in the past around the time of WW-I and later. Scheelite, a calcium tungstate mineral, has been noted as clumps in the gold ore, but, until the discovery of this vein, has not been seen in potentially economic amounts. Fred Brackebusch, CEO, commented: “The interception of this new tungsten vein is an unexpected bonus of driving the ramp through prospective ground in order to access gold reserves discovered by drilling from surface.” New Jersey Mining focuses on developing gold, silver and base metal ore resources in the Coeur d’Alene mining district of northern Idaho and western Montana.
