W Resources (WRES LN) 0.63p, Mkt Cap £23.3m – Resource upgrade for La Parilla
- W Resources has announced the results of its updated resource estimate for the La Parilla tungsten deposit in western Spain. The estimate was prepared by the consultants, Golder Associates, and incorporates results from the 2015 drilling campaign.
- The total resource, which is based on a cut-off grade of 0.04% tungsten trioxide, has increased from the 47m tonnes reported in 2013 to 51mt (+9%) with a 7% increase in grade from 0.09% to 0.096% tungsten trioxide and 0.0108% tin.
- Compared to the 2013 estimate, which was all classed as “inferred”, around 70% of the updated resource at La Parilla is now classified as “indicated” under the JORC code.
- The estimate includes 11mt of indicated resources at an average grade of 0.0996% and 2m tonnes of inferred resource grading 0.1099% within the “Fast Track Mining Area” where mining is likely to begin. In addition, the company highlights the La Parilla West area which is “open to the south, west and north” with an indicated resource of 1mt at 0.216% and an inferred resource of 4mt at a much higher reported average grade of 0.998% tungsten trioxide.
- The company reports that “Mine planning and engineering is advanced and we look forward to the upgraded development and production plan in Q2.”
- The resource update for La Parilla follows a similar upgrade for the company’s higher grade Regua tungsten project in Portugal which was reported in October 2015. Regua is higher grade at 5.46m tonnes at an average grade of 0.28% tungsten trioxide at a cut-off grade of 0.1%. Indicated resources at Regua (3.76mt at 0.304%) now comprise 75% of the overall contained tungsten trioxide and have increased by 76% since the 2012 estimate of 2.14mt at 0.367%.
SP Angel Conclusion: W Resources is pressing ahead at La Parilla where it already has some processing facilities in place for the treatment of tailings from previous mining activity. Hard rock mining of the in-situ deposit covered by this resource estimate is likely to require additional processing facilities but with many of the required permits in place W Resources should be well placed to move towards accelerated production. The reference ammonium paratungstate (APT) price remains close to historic lows dating back to at least 2010, however.
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