W Resources Plc (AIM:WRES), the tungsten, copper and gold exploration and development company with assets in Spain and Portugal, is pleased to announce its Maiden Ore Reserves for the La Parrilla mine in Spain, prepared in accordance with the JORC Code 2012:
· Mineral reserves of 29.7 million tonnes (mt) at 931 parts per million (ppm) tungsten trioxide (WO3) and 116 ppm tin (Sn)
· Average cash operating cost of La Parrilla in the first 6 years of operation is estimated at $90 / metric tonne unit (mtu)
· Delivery of higher grades increases projected revenues and cash flows in the early years of production
· Life of Mine (LOM) is 11 years, based on these reserves and the progressive expansion of La Parrilla to 2 million tonnes per annum (mtpa) in 2018 increasing to 3.5 mtpa in 2020
The La Parrilla mine reserves are set out in the following table based on the optimal LOM Pit.
La Parrilla Proven and Probable Mineral Reserves – JORC 2012
Note: Estimate for La Parrilla Deposit using a 330 ppm WO3 Cut-Off Grade and 5% dilution. All tonnes quoted are dry tonnes. Differences in the addition of tonnes to the total displayed is due to rounding.
Mining at La Parrilla will proceed in stages starting the in the Fast Track Mine (FTM) area and then expanding. The first stage FTM pit has a low strip ratio of 1.43 to 1 and will be mined for 4-6 years prior to a cutback to move to the larger LOM pit. Run of Mine (ROM) feed grades in the first 3 years of mining average 1,220 ppm of WO3 and 150 ppm of Sn at a ROM feed rate of 2 mtpa. As previously reported (RNS, 11 May 2017) this is a significant increase over previous mine schedule estimates and delivery of these higher grades increases projected revenues and cash flows in the early years of production.
Based on the detailed mine schedules and operating cost estimates, the average cash operating cost of La Parrilla in the first 6 years of operation is estimated at $90/mtu which is at the lowest quartile of the world tungsten cost curve – http://wresources.co.uk/la-parrilla.
Michael Masterman, Chairman of W commented:
“La Parrilla is a large, low cost, long life tungsten and tin mine with a mine life of over 11 years and a cost structure at the bottom of the world cost curve. It is a pleasure to report our Maiden Reserves of 29.7 mt of ore. The team is focused on commencing mining which will deliver high grades of tungsten ore averaging 1,220 ppm WO3 to the La Parrilla plant in the important early years of the mine development. These higher grades boost our production and cash flows and are part of a highly economic mine development.
“The resource and mine model review has highlighted the opportunity to further increase resources and reserves and lower mine strip ratios by targeted drilling of outcropping vein packages currently characterised as inferred in the resource models with an objective of converting these resources to indicated and measured.”
The Mineral Reserves have been prepared on a JORC 2012 compliant basis by Adén Muñoz of AYMA Mining Solutions SL, a Spanish Mining Engineering company based in Seville. The reserves are based on indicated and measured resources prepared by Golder Associated in March 2017 (RNS, 11 May 2017).
W Resources is progressing the Final Investment Decision Report (FID Report) and will release the executive summary of the report once completed early in Q3. The FID Report will provide more comprehensive details on the operating and capital cost estimates and development economics. The Competent Person considers that the FID Report is at least pre-Feasibility Study level report, and that the economic studies in the FID are positive, to the extent that extraction can reasonably be justified, and are thus sufficient for the estimation of an Ore Reserve Estimate in accordance with the JORC code (2012).
Competent Person’s Statement – La Parrilla Open Pit Mineral Reserves Statement. The information in this report that relates to the Ore Reserves is based on and fairly represents information and supporting documentation compiled by Adén Muñoz MEng (Min), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM Membership No. 322810). Adén is Principal Mining Eng. of AYMA Mining Solutions and consultant to W Resources Plc. Adén has over 20 years of experience as a mining engineer including 9 years in open pit mines in the South-west of Spain as Mine Planning Superintendent and Mine Manager. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). Adén Muñoz consents to the inclusion in the report of the matters based on his information in the form and context in which they appear. The Ore Reserve estimates have been compiled in accordance with the guidelines defined in the JORC Code.
About La Parrilla
The La Parrilla project site is situated in the Extremadura region of southwest Spain, in the Provinces of Caceres-Badajoz, approximately 310 km southwest of Madrid. The site has exceptional infrastructure in place, which is accessed directly from the highway along a 7 km asphalt road and is serviced by electricity and water. The project comprises a tungsten mine and a tungsten tailings project. The mineral resource estimated by Golder in April 2017 at 0.04% WO3 cut-off grade is 49 million tonnes at 0.10% WO3 and 0.011% Sn, making it one of the largest tungsten deposits in the western world.
TABLE 1 Section 4 – Estimation and Reporting of Ore Reserves – see link.
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