Northland Capital partners view on W Resources PLC: Another positive update from W Resources with an increase in both grade and tonnage at the La Parrilla Tungsten Project, resulting in a substantial increase in the contained WO3 content. Importantly the area defined for the Fast Track Mine (FTM) is higher grade than the bulk of the resource improving early returns from the Project. Also important is that the La Parrilla West (LPW) area is higher grade and remains open, offering further upside
W Resources (WRES.L) – BUY*: La Parrilla update | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Cap: £23m; Current Price: 0.63p; Target Price: 1.1p | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16% increase in contained WO3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
n W Resources has completed a JORC compliant mineral resource estimate upgrade at the La Parrilla Tungsten Project, located in Spain.
n The total mineral resource estimate has increased 51mt at a grade of 0.096% WO3 and 0.108% Sn. This represents a 16% increase in contained WO3 and a 7% increase in the average WO3 grade, and a 29% increase in contained Sn and a 19% increase in the average Sn grade (Table 1). n The category of the mineral resource estimate also improved with 70% of the current estimate in the indicated category compared to 0% in the previous 2013 estimate (Table 2). n High-grade mineral resource estimate over the Fast Track Mine (FTM) and La Parrilla West (LPW) areas (Table 3). n No change to forecasts, rating or price target. Table 1: Change in total (M, I & I) mineral resource estimate 2016 from 2013
Source: Company Table 2: Distribution of the 2016 mineral resource estimate in different categories
Source: Company Table 3: Categories of the FTM and LPW mineral resource estimate 2016
Source: Company |
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Source: Northland Capital Partners Limited. * Northland Capital Partners acts as Joint Broker † assumes a €16m debt finance package is secured, †† assumes a €9m debt finance package is secured
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