Tungsten Mining’s latest Scoping Study confirms Mt Mulgine as a globally significant tungsten and molybdenum project, underpinning a preferred 6 Mtpa development with robust economics and a clear path to production.
- Large indicated resource of 175 Mt supports long mine life
- Preferred 6 Mtpa processing case delivers strong financial returns
- Project includes valuable by-products, gold, silver, copper
- Pre-Feasibility Study to commence immediately, targeting Q2 2026 completion
- Estimated funding requirement between A$358M and A$495M
A Globally Significant Critical Minerals Asset
Tungsten Mining NL (ASX, TGN) has released the results of its Scoping Study for the Mt Mulgine Project in Western Australia, positioning it as a major future supplier of tungsten and molybdenum; two metals critical to industrial and defence sectors worldwide. The study highlights a substantial indicated mineral resource base of 175 million tonnes, supporting long-term, low-cost production and significant optionality for scale expansion.
Robust Economics Underpin Preferred Development Path
The Scoping Study evaluated multiple throughput scenarios, ultimately endorsing a 6 million tonnes per annum (Mtpa) tungsten processing facility as the preferred development case. This option balances capital intensity with operational efficiency, delivering a post-tax net present value (NPV) of approximately A$782 million under mid-case assumptions and an internal rate of return (IRR) of 34%. Notably, these financials are conservative, based on long-term commodity price assumptions well below current record tungsten prices.
Alongside tungsten and molybdenum concentrates, the project anticipates valuable by-products including gold, silver, and copper, enhancing overall project margins. The gold resource alone includes an indicated 67,500 ounces with exploration targets suggesting potential for further upside.
Metallurgical Confidence and Infrastructure Planning
Extensive metallurgical testwork confirms the amenability of Mt Mulgine’s ore to gravity and flotation beneficiation, with tungsten recoveries exceeding 70% and molybdenum recoveries around 70%. The simplified flowsheet design supports efficient processing and concentrate production, while preliminary infrastructure plans include a tailings storage facility, power supply strategy incorporating renewables, and a permanent accommodation camp designed for scalability.
Environmental and Regulatory Framework
The project benefits from a comprehensive environmental and heritage baseline, with ongoing studies aimed at securing necessary approvals. While some conservation-significant species and heritage values exist within the project area, management plans and mitigation strategies are in place. The approvals pathway is well mapped, with submissions planned to align with the Pre-Feasibility and Definitive Feasibility Study timelines.
Funding and Next Steps
Development funding is estimated between A$358 million and A$495 million for the preferred 6 Mtpa case, with Tungsten Mining exploring a mix of debt, equity, and strategic partnerships. The company plans to commence the Pre-Feasibility Study immediately, targeting completion by mid-2026, followed by a Definitive Feasibility Study in the second half of 2027. Production is aimed for late 2029, positioning Mt Mulgine as a timely entrant into the critical minerals supply chain amid global supply constraints.
Bottom Line?
With a strong resource base and compelling economics, Mt Mulgine is poised to become a cornerstone of global tungsten supply, pending successful funding and regulatory approvals.
Questions in the middle?
- How will Tungsten Mining secure the substantial funding required without excessive dilution?
- What impact will fluctuating tungsten and molybdenum prices have on project viability?
- Can the company expand the resource base or improve recoveries to enhance project returns?