Tungsten Mining NL is pivoting its Mt Mulgine Project development by targeting near-surface oxide gold to generate early cash flow and support its long-term tungsten ambitions. A 10-week integrated scoping study will soon assess this dual-resource approach.
- Near-surface oxide gold identified in overburden material previously deemed waste
- Gold extraction aims to offset pre-strip costs and reduce capital requirements
- Integrated scoping study to evaluate standalone gold project and tungsten integration
- Historical gold mining data confirms significant unmined gold mineralisation
- Accelerated approvals strategy underway to fast-track project development
A Strategic Shift at Mt Mulgine
Tungsten Mining NL (ASX, TGN) has announced a significant update to its Mt Mulgine Project development strategy, introducing an integrated approach that leverages near-surface oxide gold mineralisation alongside its core tungsten and molybdenum resources. This pivot aims to unlock early value by extracting gold from overburden material historically considered waste, thereby generating cash flow to support the broader tungsten project.
The company’s chairman, Gary Lyons, emphasised the commercial rationale behind this move, highlighting that targeting oxide gold within the proposed starter pit’s overburden could offset costly pre-strip activities and accelerate access to the primary tungsten ore body. This dual-resource strategy is designed to improve early project economics while maintaining the long-term vision of establishing Mt Mulgine as a tier-one tungsten supplier.
Historical Context and New Opportunities
Mt Mulgine has a rich history of gold exploration and mining dating back to the 1960s, with significant production recorded between 2014 and 2015 by Minjar Gold Pty Ltd. Historical mining at pits such as Camp, Bobby McGee, and Black Dog yielded over 47,000 ounces of gold from nearly 880,000 tonnes of ore. Recent evaluations by Tungsten Mining, including drilling and metallurgical testwork, have confirmed the presence of substantial unmined oxide gold mineralisation within the overburden at the Mulgine Trench.
Initial metallurgical testing by Nagrom in Western Australia demonstrated promising gold recoveries using conventional processing methods, reinforcing the viability of this near-surface gold as a standalone opportunity. This discovery is particularly timely given the approximately 40% increase in gold prices over the past year, enhancing the economic potential of the oxide gold resource.
Integrated Scoping Study and Forward Planning
To thoroughly assess this opportunity, Tungsten Mining is launching a comprehensive 10-week integrated scoping study starting in July 2025. The study will evaluate the standalone oxide gold project’s capital and operating costs, explore integration pathways with the tungsten and molybdenum development, and address critical infrastructure, tailings management, and environmental considerations.
Key components of the study include pit optimisation, indicative mine scheduling, and an accelerated approvals strategy aimed at expediting production commencement. Importantly, the company plans to estimate a standalone Mineral Resource Estimate (MRE) for the gold-bearing oxide material, which will underpin future economic modelling and provide greater transparency to investors.
Implications for Tungsten and Molybdenum Development
The integration of gold extraction into the early phases of Mt Mulgine’s development is expected to reduce upfront capital requirements and de-risk the project by generating early cash flow. This approach could smooth the pathway to full-scale tungsten and molybdenum production, which remains the company’s long-term focus given the strategic importance of these critical minerals in industrial and defense applications globally.
Tungsten Mining’s revised strategy reflects a pragmatic response to market conditions and resource potential, positioning Mt Mulgine to deliver value both in the near term and over the long haul.
Bottom Line?
Tungsten Mining’s dual-resource approach at Mt Mulgine could redefine project economics and accelerate its path to production.
Questions in the middle?
- What will the standalone Mineral Resource Estimate reveal about the oxide gold’s scale and grade?
- How will the integration of gold extraction impact the timeline and capital expenditure for tungsten development?
- What regulatory hurdles remain for the accelerated approvals strategy, and how quickly can they be overcome?