Tungsten Mining targets early gold at Mt Mulgine

• Oxide gold extraction designed to offset early development costs for primary tungsten ore body
• Gold mineralisation sits within overburden material, previously considered waste rock
• Near-surface mineralisation offers low pre-stripping costs

Special Report: Shallow gold in rock previously considered waste material could materially lower the cost of accessing the tungsten ore body at the Mt Mulgine project in WA.

Tunsgten Mining (ASX:TGN) has revamped its development strategy for Mt Mulgine, opting to target near-surface oxide gold to offset costs and lower the capital threshold required to develop the primary tungsten orebody.

The WA project is host to two deposits with a combined mineral resource estimate of 219Mt at 0.11% tungsten, 260 parts per million molybdenum, 0.12g/t gold and 5g/t silver.

TGN will target mineralisation above a proposed tungsten starter pit in a gold-focused start-up operation, with the goal of accelerating project development.

Tungsten Mining chair Gary Lyons said the updated development strategy made strong commercial sense.

“By targeting oxide gold mineralisation located within the overburden of our proposed starter pit we have an opportunity to generate early cash flow, offset pre-strip costs and accelerate project development,” Lyons said.

“Crucially, this near-term initiative strengthens our long-term ambition to establish Mt Mulgine as a tier-one supplier of tungsten and molybdenum. 

“With global demand for critical minerals surging, particularly for industrial and defence applications, Mt Mulgine is strategically positioned to deliver significant value in the near term while building towards large-scale, long-life production in a Tier-1 jurisdiction.”

Historical gold mining at Mt Mulgine

The project has been intensely explored for gold, tungsten and molybdenum since the 1960s.

Activity was primarily focused on gold exploration between 1985 and 2016, with Minjar Gold producing 47,254 ounces over three deposits (Camp pits, Black Dog and Bobby McGee) from 2014 to 2015.

More recently, Tungsten confirmed the mineralisation at Mt Mulgine had potential for high gold recoveries using conventional gravity and carbon-in-leach processing, offering cost-effective beneficiation methods.

From here, TGN intends to:

• Review previously approved mining proposals and required clearing permits relevant to potential oxide gold extraction;
• Conduct a detailed review of oxide gold mineralisation; and
• Assess processing and development options to unlock near-term value from oxide gold.

This article was developed in collaboration with Tungsten Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.