Tungsten Mining NL’s latest scoping study for the Mt Mulgine Project in Western Australia reveals a robust critical minerals asset with strong financial metrics and a clear path to production by 2029.
- Mt Mulgine ranks among the largest tungsten deposits outside China
- Two development scenarios with NPVs up to A$2.3 billion pre-tax
- Low strip ratio and competitive operating costs underpin project economics
- Targeted first production in 2029 following final investment decision in 2027
- Strong market demand amid global tungsten supply constraints
A Globally Significant Critical Minerals Asset
Tungsten Mining NL (ASX – TGN) has released a comprehensive scoping study for its flagship Mt Mulgine Project in Western Australia, confirming the project’s status as a globally significant source of critical minerals. The study highlights substantial resources of tungsten, molybdenum, copper, gold, and silver, positioning Mt Mulgine as one of the largest tungsten deposits outside China.
The project benefits from its location in a politically stable and mining-friendly jurisdiction, with proximity to established infrastructure and ports. This strategic positioning enhances its appeal amid growing global demand for critical minerals, particularly tungsten, which faces tightening supply due to geopolitical factors and export restrictions imposed by China.
Robust Economics Underpin Development Scenarios
The scoping study outlines two development cases – a 6 million tonnes per annum (Mtpa) start-up with a 23-year mine life, and a larger 15 Mtpa scenario with a 10-year mine life. Both cases demonstrate strong financial metrics, with pre-tax net present values (NPVs) ranging from A$1.0 billion to A$2.3 billion and internal rates of return (IRRs) up to 62%. Operating costs are competitive, ranging between A$21.6 and A$30.8 per tonne of ore, supported by a low average strip ratio of 0.8 – 1.
Capital expenditure estimates vary from A$358 million for the smaller scale to A$868 million for the larger development, reflecting the project’s scalability. The study assumes conservative commodity prices well below current spot levels, suggesting significant upside potential if market conditions improve.
Strategic Market Position and Supply Dynamics
Tungsten’s critical role in defense, technology, and industrial applications has driven a surge in demand, exacerbated by China’s dominant control over global supply and recent export restrictions. Tungsten Mining’s Mt Mulgine project offers a rare opportunity to diversify supply sources outside China, aligning with global efforts to secure critical minerals supply chains.
The company’s resource inventory, which includes polymetallic deposits with valuable by-products, enhances the project’s economic resilience. The scoping study’s positive metallurgical testwork supports a conventional and cost-effective processing flowsheet targeting tungsten, molybdenum, and copper-gold-silver concentrates.
Pathway to Production and Upcoming Catalysts
Tungsten Mining plans to advance Mt Mulgine through pre-feasibility and definitive feasibility studies over the next two years, aiming for a final investment decision by late 2027. First production is targeted for 2029, supported by a staged development approach and potential strategic partnerships. Key upcoming milestones include resource expansion drilling, completion of feasibility studies, and engagement with offtake and funding partners.
The company’s management team brings extensive industry experience, and the project’s infrastructure plans incorporate renewable energy options and local workforce engagement, reflecting a commitment to sustainable development.
A Rare Critical Minerals Opportunity
With tungsten prices at historic highs and supply deficits deepening, Mt Mulgine stands out as a strategically important project. Tungsten Mining’s scoping study provides a solid foundation for future growth, but the path ahead requires securing funding and navigating technical and market risks. Investors and analysts will be watching closely as the company progresses toward feasibility milestones and potential market listings.
Bottom Line?
Mt Mulgine’s promising economics and strategic positioning set the stage for Tungsten Mining’s next critical phase; securing funding and advancing toward production in a tightening global tungsten market.
Questions in the middle?
- How will Tungsten Mining secure the substantial capital required for project development?
- What impact will fluctuating tungsten and molybdenum prices have on project viability?
- Can the company convert exploration targets into additional resources to extend mine life?