Tungsten Mining NL has launched a Project Economic Evaluation to explore accelerated development of its Watershed Project, leveraging existing approvals to potentially fast-track production in a tightening tungsten market.
- Project Economic Evaluation initiated for Watershed to assess faster development
- Existing mining leases and environmental approvals in place
- Drilling and metallurgical testwork planned for Q2 2026
- Engineering reviews focus on infrastructure and process optimisation
- Potential transition to Front-End Engineering Design pending positive outcomes
Context and Market Dynamics
Tungsten Mining NL (ASX, TGN) has taken a decisive step to accelerate the development of its Watershed Project in Queensland, Australia, by commencing a Project Economic Evaluation (PEE). This move comes amid a backdrop of sustained high tungsten prices and a deepening supply deficit, positioning tungsten as a critical mineral with growing strategic importance globally.
The Watershed Project, located about 115 kilometres northwest of Cairns, benefits from granted mining leases and an approved Environmental Authority, providing a rare opportunity to fast-track development without the usual lengthy permitting delays. This contrasts with the company’s other flagship project, Mt Mulgine, which remains in the pre-feasibility stage and represents a longer-term strategic asset.
Technical and Operational Plans
The evaluation phase includes planned drilling in the second quarter of 2026 aimed at testing known high-grade, near-surface mineralised zones. This drilling is designed to increase resource confidence and support a potential accelerated timeline. Concurrently, metallurgical testwork will commence in March 2026 to refine the processing flowsheet, focusing on capital efficiency and optimisation.
Engineering efforts are underway to reassess infrastructure needs, including water and power supply, which are critical components for an open-pit mining operation. The company aims to leverage the substantial technical groundwork laid by the previous Definitive Feasibility Study completed by former owner Vital Metals Limited in 2014, updating it to current market and operational conditions.
Strategic Implications and Next Steps
The PEE is scheduled for completion by mid-2026, with the possibility of transitioning into early Front-End Engineering Design (FEED) if the evaluation yields positive results and receives Board approval. This phased approach allows Tungsten Mining to maintain flexibility while responding to market signals and operational realities.
Importantly, the company is also progressing regulatory workstreams, including reinstating the Environmental Authority and advancing the Progressive Rehabilitation and Closure Plan in consultation with regulators. These steps are essential to ensure a smooth path towards potential operations.
Chairman Gary Lyons highlighted the strategic value of Watershed as a near-term revenue opportunity that complements the longer-term Mt Mulgine project. With tungsten prices holding at elevated levels, the timing could be favourable for Tungsten Mining to capitalise on its portfolio’s operational flexibility.
Bottom Line?
Watershed’s accelerated evaluation could reshape Tungsten Mining’s near-term prospects amid a tightening tungsten market.
Questions in the middle?
- Will drilling confirm sufficient high-grade resources to justify accelerated development?
- How will updated engineering assessments impact capital expenditure estimates?
- What timeline can investors realistically expect for potential production ramp-up?