AIM-listed W Resources hope to raise approximately £1.2 million from a share offering in order to fund development of its wholly owned La Parilla tungsten-tin tailings project in Spain. The share offering follows the recent completion of a comprehensive study at the site, which envisages a 12 year, two-stage mine operation.
The first stage, La Parilla Fast Track Mine (FTM), will utilise the existing concentrator plant at the site to produce 1,200-1,300 tonnes of 66% tungsten concentrate and 110 tonnes of 52% tin concentrate each year. Capital costs for the FTM are estimated at US$ 16 million with production targeted by mid to late 2016. Development of the second stage, full mine (FM), is planned for 2017/2018 and would increase annual production to 5,000 tonnes of tungsten concentrate and 400 tonnes of tin concentrate at an additional capital cost of US$ 36 million. Metal recoveries of 72% and low operating costs of 121 US$/mtu are reportedly possible due to coarse grain sizes, allowing high mass rejection of waste rock during crushing and pre-concentration.
The share offering will fund environmental approvals and provide working capital whilst funding for construction of the FTM is sought. In-fill drilling and metallurgical and ore sorter testwork will also be undertaken in Q3 in an effort to further improve the projects economics and understanding of the mineral resource.
