Tungsten companies are making changes to cope with the new market

By Leia Michele Toovey- Exclusive to Tungsten Investing News

The market has been increasingly volatile over the past months. With this week’s huge adjustments, many businesses have announced strategic measures.

Tungsten companies are no exception, announcing some business changes this week as well. In direct response to the market conditions of the past months, Golden Predator Mines Inc. (TSX: GP) is cutting costs and delaying the mill startup at its Springer tungsten redevelopment in northwestern Nevada. This announcement was issued by the company on Wednesday, one day after Midway Gold Corp (TSX.V:MDW) called off its proposed acquisition of the Golden Predator mines that was announced this July. The all-share deal, worth approximately US$60 million, would have expanded Midway’s portfolio in Nevada. Although the cost cuts will delay the eventual startup of the Springer mill, Golden Predator is holding its permitting activities and many operational readiness programs in preparation for a quick start up following the return order to the financial markets.

Golden Predator acquired Springer Mining Co. in December 2006, paying General Electric Co. US$4.5 million and assuming about US$1million in reclamation obligations. The property includes 12 sq kms of land and tungsten mine and mill complex in Pershing County.

After four years of development, and a US$120 million investment, Metals miner Straits Resources Ltd (ASX.SRL) has officially re-opened the Hillgrove antimony, gold and tungsten mine near Armidale in New South Wales. The mine was acquired from a private company in April 2004 for US$8 million. The mine boasts historic production of more than 720,000 ounces of gold and 50,000 tonnes of antimony. Straits Resources plans to produce 20,000 oz of gold, 10,000 tonnes of antimony and 30 tonnes of tungsten from the mine each year. The tungsten will be produced in tungsten concentrate form. Straits Resources expects to complete the de-merger of its 47 per cent held subsidiary, coal miner Straits Asia Resources Ltd, by mid October, leaving the focus on metals production.

Wolf Minerals (ASX.WLF) has announced the preliminary results of it’s feasibly study on the Hemerdon Ball Mine. Wolf Minerals was incorporated on September 20, 2006 as a metal exploration and development company. Wolf listed with strong support and made a sterling debut on the ASX in February 2007; the success that followed led to Wolf being hailed the best performing IPO for 2007. The new Hemerdon project is set to become Wolf’s flagship property. In April, Wolf raised US$3 million at US$1 a share to further the venture, which is currently at its feasibility stage. The scoping study indicated a US$160 million cost for a 3 million tonnes-a-year facility, with production of 3000 tonnes of tungsten and tin the feasibility study cites an inferred resource of 82 million tonnes at 0.22 tungsten and 0.022 percent tin and is undertaking a further drilling program to shore up this estimate. The complete feasibility study is set to be delivered in the June quarter of 2009.

Strong metal prices helped northern Australia focused Thor Mining PLC (ASX.THR) trim full year pre-tax losses. The group, which specializes in tungsten-molybdenum and uranium projects, said pre-tax losses narrowed to £1.2m in the year ended June 30, 2008 from £1.4m the year before. Thor said that significant progress in the 2008 financial year was offset by difficult share market trading conditions around the world. While difficult trading conditions persist the fundamentals of its flagship project, Molyhil remains sound it said in a company statement. The company is looking to expand the portfolio of projects in the specialty metals field, with the Hatches Creek multi-commodity project on their radar.

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