If the test work is positive, it will lead to the colick here to acmpany’s upgrade related to its production of tungsten and molybdenum products.

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According to Xinhua, Chenzhou which is located in southern Hunan and bordering Guangdong, has the most Tungsten, Bismuth, Tin, and Zinc.

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The press release is quoted as saying:

With an estimated production of 3,000 tonnes of tungsten a year, Wolf says Hemerdon could be one of the world’s largest tungsten mines.

Bore holes and test pits have been completed at a former tungsten and tin mine on the edge of Dartmoor.

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The ferro-tungsten market has been stagnant in recent weeks, with only a handful of transactions taking place. Last Friday, in China, inactivity translated into a dip in prices. Ferro-tungsten fell to $25.90 a kilogram, down from the recent rate of $28.00 per kilogram. One producer commented, “There has been a lack of buying activity and there’s no sign that we’ll see a recovery.” Tungsten prices in the United States remain unchanged, but market sources agree lack of purchases could drive down prices. Last October, the price of tungsten took a dive. As a result, in China, an estimated 80 per cent of producers curbed output.

With the promotion of major infrastructure projects around the world, the tungsten market could see a reversal back to previous trends.  The tungsten market is volatile, with a few key players controlling the market share.  In infrastructure development needs tungsten, then prices could be in for a wild ride; especially considering the level of output cuts in the industry.

China’s Jiangxi Ganzhou City has earmarked US $260 million to procure tungsten and rare earth products. Ganzhou will buy 10,000 tonnes of scheelite and tungsten products, and 10,000 tonnes of rare-earth ore to help metal firms struggling on the back of the commodities price collapse. Ganzhou, a city in eastern China’s Jiangxi Province, and the world’s largest tungsten making region, is building up its own tungsten and rare earth reserves. China’s State Reserves Bureau has been buying various metals, including copper, aluminum, zinc and nickel.

A new, large deposit of tungsten ore has been discovered in east China’s Anhui Province.  With a proved reserve of 96,200 tonnes, the finding in Qimen County is an important one for the country as only 144,000 tonnes of tungsten ore have been found between 2001 and 2007. China’s tungsten reserves are mainly in the provinces of Hunan, Jiangxi and Henan, which jointly account for 61.37 per cent of the total national reserve. China, along with Russia, Canada and the United States, is a major tungsten producer in the world. It holds 40.5 per cent of the world’s proved reserves.

Company News

Largo Resources Ltd. (TSX.V: LGO) has acquired a 70 per cent interest in the Northern Dancer property in Yukon Territory. Largo has the option to earn the remaining 30 per cent  interest in the property by making a cash payment of $5,000,000 or issuing the equivalent value in shares of the company within twelve months. Northern Dancer hosts widespread tungsten-molybdenum porphyry style mineralization. The updated mineral resource for the deposit at a cut-off grade of 0.06 per cent WO3 is estimated as measured mineral resources of 30.8 million tonnes grading 0.114 per cent WO3 and 0.030 per cent Mo, indicated mineral resources of 192.6 million tonnes grading 0.100 per cent WO3 and 0.029 per cent Mo. The measured and indicated mineral resource estimate contains 226.9 k tonnes of WO3 and 65.2 k tonnes of Mo. Inferred mineral resources were estimated to be 201.2 million tonnes grading 0.089 per cent WO3 and 0.024 per cent Mo containing 178.3 k tonnes WO3 and 48.9 k tonnes of Mo.

Zijin Mining Group’s profits increased by 20.32 per cent YoY, while it’s operating revenue grew by 11.32 per cent on an annual basis.  The company has attributed the rise in both net profit and operating revenue to increased output of its major products, as well as higher prices. Zijin Mining produced 57.32 tonnes of gold last year, 16.26 per cent higher than the previous year; it also produced 61,409 tonnes of copper in concentrate form increasing by 29.98 per cent from the previous year.  Due to production cutbacks after zinc prices plummeted in the second half of last year, its output of zinc in concentrate form decreased by 25.1 per cent year on year to 33,680 tonnes and its zinc ingot production dropped 11.18 per cent year on year to 101,437 tonnes.

By the end of 2008, Zijin Mining held a total of 701.5 tonnes of gold reserves, 1,700 tonnes of silver reserves, 9.64 million tonnes of copper reserves, 390,000 tonnes of moly reserves, 5.28 million tonnes of lead and zinc reserves, 100,000 tons of tungsten reserves, 151 tons of platinum and palladium reserves, 100,000 tonnes of tin reserves, 667,500 tonnes of nickel reserves, 168 million tonnes of iron ore reserves, 43.97 million tonnes of bauxite reserves, and 300 million tonnes of coal reserves. The company’s planned production for 2009 includes 4,556 tonnes of tungsten concentrate. In addition, Zijin Mining has also revealed its intention to acquire mineral resources due to currently low commodity prices.

By Leia Michele Toovey- Exclusive to Tungsten Investing News

The tungsten market has been quiet for ‘09.  Ferro-tungsten prices have been slowly creeping up due to short supply, so it is exploration as usual for the tungsten business.  Tungsten exploration outside of China is critical, as the country has a monopoly on the metal used for military and aeronautical equipment.

North American Tungsten Corp’s (TSX.V:NTC) exploration program is bringing the company  good news. The drilling program on the company’s 100 per cent owned Cantung mine continues to intersect high grade mineralization.  ”Ongoing definition and exploration drilling at Cantung has discovered a high grade western extension at the lower levels of the West Extension zone of the mine. This extended zone is within 100 feet of existing underground development and further highlights Cantung potential for defining additional mineralization” said North American Tungsten Chairman and CEO, Stephen Leahy. “This recent exploration drilling by Cantung geology and engineering teams is adding significant near term value as we continue to focus on expansion of the existing resource and extension of the Cantung mine life.” The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The company’s Cantung mine and Mactung development project make it one of the few tungsten producers with a strategic asset in the western world. Mactung is one of the world’s largest known undeveloped high grade tungsten-skarn deposits.

Largo Resources Ltd. (TSX.V: LGO) has completed a new block model and updated mineral resource estimate incorporating the results from its 2008 drill program. The updated mineral resource has increased  The grade of WO3 and Molybdenum by 14 per cent and 15 per cent respectively.  The tonnage of the new Measured and Indicated category has increased by 58 per cent  compared to the previous Indicated mineral resource estimate, While the contained pounds of WO3 and Molybdenum have increased by 56.5 per cent and 76 per cent respectively. Most importantly, the 2008 drilling program provided much better definition of the higher-grade zone which is estimated to contain a Measured and Indicated resource of 60.3 million tonnes grading 0.137 per cent WO3 and 0.045 per cent Mo and Inferred mineral resource of 5.4 million tonnes grading 0.134 per cent WO3 and 0.047 per cent Mo (WO3 equiv 0.214 per cent) at a 0.17 per cent WO3 equivalent cut-off grade. These estimates represent grade increases of 35 per cent and 70 per cent over the overall deposit grade for both WO3 and Molybdenum respectively. The Northern Dancer deposit is one of the world’s largest known tungsten-molybdenum porphyry systems. The deposit, which has been tested by drilling for 1.2 kilometers along strike, 500 meters vertically and 600 meters in width, remains open along strike to both the northeast and southwest as well as at depth.

Malaga Inc. recently published a technical report on tungsten reserves and resources on its PastoBueno property located in the Ancash Province in Peru. The report describes 98,448 metric tonnes of proven and probable reserves with a WO3 average grade of 0.95 per cent, 142,490 metric tonnes of measured and indicated resources with a WO3 average grade of 1.05 per cent and 1,204,000 metric tons of presumed resources with a WO3 grade of 0.82 per cent. Tungsten concentrates have been produced at Pasto Bueno for the last 100 years, since 1910 it has been reported that more than 6 million tonnes of ore has been processed yielding more than 42,000 tons of WO3 concentrates. No drilling had been performed on this property, prior to Malaga’s 2007 campaign.  Historical production at Pasto Bueno came from the mining of six main veins.

European Ferro tungsten prices crept up for the week as buyers drew down inventories in Rotterdam.

For a second week in a row, the Lunar New Year Holiday in China meant lack of supplies were coming out of the country. Ferro Tungsten was quoted higher at around US$30 a kg from US$29 a kg last week and US$25 a kg the week before, as consumer enquiries for the metal were met with empty hands. Chinese producers are closed and they will stay closed until after the holiday next week.

Once the New Year holiday is over, Chinese production will resume but cutbacks and plant closures are expected to continue.  Overall, traders said there was very little business being done and they do not expect to see a real recovery until the second half of the year.  The selling prices of tungsten ammonium paratungstate (APT) have remained steady between US$235 and US$245 per metric tonne unit during the same period. The outlook for tungsten in the long term continues to be optimistic with increased demand expected in the coming year.

Christopher Anderson shares an optimistic view on the tungsten industry’s future. As the vice-president of business development for Geodex Minerals Ltd. (TSX.V: GXM), Anderson helped host a recent industry meet-and-greet to get investors hyped up about the metal. Geodex has been working a tungsten deposit at its Sisson Brook property near Fredericton, which executives hope will one day be among the largest and least expensive open-pit tungsten mines in the world. The company took a break from drilling last fall due to lack of credit and instead invested their time and money into mineralogical studies. Anderson said market factors will not impede Geodex from moving forward. “We are cashed up and we have got a great deposit.” Experts predict commodity prices won’t inch up much before the end of 2009, however, mining is anticipated to be one of the first industries to rebound from the economic crisis.

Company news

Uran Limited (ASX:URA)  has entered into an option to purchase the Victor tungsten project, in California. The project, located in the historic tungsten mining District of Inyo County consists of 13 granted patented lode mining claims, covering a small, high-grade tungsten mine. Uran, through its wholly owned subsidiary Juno Minerals, has paid an option fee of $50,000 under the terms of the agreement, and has the right to acquire a 100 per cent stake in the property, by paying $150,000, within two years. The Victor project was mined for tungsten and copper prior to World War I, and briefly after World War II, however, the planned construction of a tungsten mill on the property failed when the government price support program for tungsten ended in the early 1950s.There has been no work done on the property since that time. Assay results have now been received for 19 rock chip samples, taken in October, and most samples evaluated have shown copper and tungsten values, with elevated uranium and molybdenum values, as well as anomalous gold and silver. Uran stated that the mineralized skarns at Victor, which were not exploited by historic mining, had significant potential to host economic tungsten and copper. Exploration on the project would be deferred until work at Juno Minerals’ other project, the Finley basin in Montana, was completed, and economic conditions improved.

Thor Mining PLC recently announced that developing the Molyhill tungsten-molybdenum project remains the company’s main focus.  Thor has met with many potential financiers and partners with a view to getting the project into operation.” The discussions have been very positive to date, however the mood is cautious in the current financial climate, “the group said in an update for the quarter to end-December 2008. Investigation of alternatives to reduce capital and operating costs for the project continue.

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 .

Shenzhen, the Chinese city that accounts for 60 per cent of China’s total annual exports, is witnessing declining demand for tungsten.

In 2007, the latest year for which industry data is available, it shipped $23 million worth of tungsten carbide powder and alloy jewelry. Last year, Shenzhen was estimated to export just $18.4 million worth, a reduction of 25 per cent. There are a few factors that have caused this, one being the global market slump.  Perhaps, though China’s efforts to control the tungsten industry are backfiring on its own local businesses.

China has an overwhelming monopoly on the market; an estimated 85 per cent of world tungsten thirst is quenched by China.  China has taken steps in the past to make sure that they are in control of this metal prized for its hardness, and used in military applications.  China has been accused of dumping; flooding the markets with tungsten as global suppliers come online; and, when China feels its stranglehold on the industry is strong enough, and they have been accused of price gauging. Now, with the entire world in a slump, and not enough demand on the domestic market, the country should been keen to export all they can.

Company news

Sultan Minerals Inc. has received the 12-month environmental base study completed by tWardrop Engineering Inc. The study was carried out over its Jersey-Emerald property, located 10 km south of the community of Salmo in southeastern BC. The report represents another milestone in Sultan’s efforts to expedite the re-opening of this historic tungsten and lead-zinc producer. The report documents an aquatic environmental baseline study conducted for Sultan in and around the Jersey-Emerald property from August 2007 to July 2008. The study was conducted in support of a proposal for future certification under the British Columbia Environmental Assessment Act to provide a basis for assessing the potential effects of the project on the aquatic environment. The study included sampling stations located over and adjacent to the historic mine.In May 2007, a NI 43-101 scoping study completed by Wardrop demonstrated that the Jersey-Emerald Tungsten deposits could support a potentially commercial 1,100 t/day mining operation at a tungsten APT price of $244/MTU. The price of tungsten has since remained relatively stable with the current average price being $246/MTU for APT concentrate as of December 10, 2008. The report suggested that the economics of the operation would be substantially improved by expanding the tungsten resource with additional diamond drilling in order to justify a 2,000 t/day operation. Sultan has since completed approximately 20,000 meters of diamond drilling in 87 diamond drill holes and is awaiting results of an updated tungsten resource estimate the updated NI 43-101 compliant resource report is expected to be available in early January. Assays are pending for samples from a program of trenching and surface prospecting recently completed over the south end of the Jersey-Emerald property. A large tungsten and lead-zinc soil anomaly centered 3.0 km south of the historic mine suggests there is good potential for additional new discoveries on this 9,300 hectare property.

North Bay Resources has signed a contract with Hidalgo Mining International Inc. to engage in a joint-venture for the development of North Bay’s Gold Hill Project in British Columbia, Canada. Terms of the agreement call for Hidalgo to commit up to $1.25 million USD over three years for developmental drilling and surface ore recovery. North Bay and Hidalgo will each own 50 per cent of the Gold Hill Project and will equally share any and all net revenue, including any near-term profits generated from surface ore recovery operations. The Gold Hill mine’s past production averaged over 29.47 grams per tonne gold and 54.11 grams per tonne silver, while production figures from the Silver Dollar and the Lucky Boy workings averaged 9.39 grams per tonne gold and 335 grams per tonne silver. More recent exploration has outlined an extended strike length of over 2600 meters, with reported assays from underground workings grading as high as 57.81 grams per tonne gold and 3790 grams per tonne silver. Recent drilling programs on properties immediately adjacent to the north and the west of Gold Hill in the 2007-2008 exploration season intersected significant levels of tungsten and molybdenum.

The bear market has influenced tungsten prices

By Leia Michele Toovey- Exclusive to Tungsten Investing News

Tungsten, like all other metals, has seen a large amount of its value lost in the 2008 market crash. 

Some stability though has been lent to tungsten metal due to the fact that China has a monopoly on the market.  China has curbed output to coincide with the price collapse, and this has lent some stability.  A minor metal that has received more attention recently, Research and Markets has announced the addition of the Tungsten Market Review report to their offering. This report focuses on the study of the global tungsten markets. It provides region analysis on tungsten production. It features major tungsten producers, prices, supply and demand conditions, international trade, etc. The review also includes future outlook of the world tungsten market.

Company news

Golden Predator Mines Inc. (TSX: GP) reports that David Cole has resigned from the board of directors and has accepted the position as a member of its Technical Advisory Board. Golden Predator is a tungsten and gold mining company focused on mineral development in Nevada and surrounding states. The company intends to augment its position in the domestic tungsten business through high grade gold development and production. Its current principal project is the Springer Facility, a 1,000 ton per day mine and mill complex built by the General Electric Company between 1979 and 1982. While it had a 13-year mine life at time of construction, GE only operated the facility for eight months when it ceased production in 1982 and placed Springer on care and maintenance due to falling tungsten prices. Golden Predator is in the process of re-commissioning the mill, and when completed, it will be the only operational tungsten mill in the United States

Happy Creek Minerals Ltd. (TSX-V: HPY)  has received promising results from a rock sampling program on its 100% owned Fox tungsten-molybdenum property, in British Columbia, Canada. The rock sampling was a follow up to drilling in 2007 that confirmed a large scale tungsten-molybdenum system approximately 1.5 kilometers by 500 meters in dimension. The first-ever, widely spaced drilling returned several potentially economic intercepts including 5.0 meters of 0.33 per cent WO3 (tungsten trioxide), 2.0 meters of 0.74 per cent WO3, and 1.7 meters of 0.51per cent molybdenum. On surface, blocks of this material have returned up to 12.778 per cent molybdenum and 5.65 per cent WO3. The 2008 exploration of the Ridley Creek area, located approximately four kilometers north of the Nightcrawler zone, comprised geology, prospecting and silt and soil geochemical surveys that detailed and expanded upon the positive 2007 soil and rock results. In addition to tungsten, rock sampling in 2008 also returned up to 0.19% molybdenum from quartz veins within the quartz monzonite intrusion. Tungsten, and the presence of molybdenum in quartz veins within an intrusion very similar in age to the Boss Mountain, supports the Company’s view that a porphyry style bulk tonnage molybdenum-tungsten deposit is responsible for the mineralization.

Brett Resources Inc. (TSX.V: BBR) is pleased to report drill results from eight holes on the Hammond Reef Property in Ontario, Canada. Highlights from these holes include hole BR-113 with 154 meters of 1.21 g/t Au. Brett’s President and CEO Patrick Soares commented, “Brett continues to build on its drilling success at Hammond Reef. Step-out drilling south-east of Mitta Lake verifies the resource block model which predicts that thick mineralized gold lenses plunge gently to the north-east. Southwest of Mitta Lake, drilling verifies the presence of thick gold mineralized lenses that start near surface and reach a depth of approximately 300 meters below surface. These results are also consistent with the resource model that indicated that 97 percent of the 4.8 million ounce resource lies within 300 meters of surface.” The Company filed its NI- 43-101 report with SEDAR.