Tungsten Mining has locked in a robust economic case for its Watershed project with a pre-tax NPV of A$1.31 billion and IRR near 200%, while launching its largest-ever drilling campaign at Mt Mulgine to underpin long-term growth.
- Watershed PEE delivers A$1.31 billion pre-tax NPV and 198% IRR
- Watershed Mineral Resource grows 8% to 69.7Mt at 0.109% WO3
- Mt Mulgine drilling campaign commences with 45,000m planned
- Targeted Watershed FID set for September 2026, production by H1 2027
- US Nasdaq listing preparations advance with Grant Thornton auditor
Watershed Project Emerges as Near-Term Development Focus
Tungsten Mining (ASX:TGN) has crystallised a pathway to develop its Watershed tungsten project in Queensland, underpinned by a Preliminary Economic Evaluation (PEE) that delivered a pre-tax net present value (NPV) of A$1.31 billion and an eye-watering internal rate of return (IRR) of 198%. The study envisions a nine-month payback period from first ore extraction, with pre-production capital expenditure estimated at A$274 million.
This robust economic profile positions Watershed as Tungsten Mining’s primary near-term value driver. The project benefits from granted mining leases and an environmental authority for open-pit mining, with secondary approvals and development activities advancing toward a targeted Final Investment Decision (FID) in September 2026. First production is ambitiously targeted by the end of H1 2027, subject to completion of studies, funding, regulatory approvals, and board endorsement.
The updated Mineral Resource Estimate (MRE) for Watershed grew by 8% to 69.7 million tonnes grading 0.109% WO3, containing approximately 76,000 tonnes of tungsten trioxide. This increase stems from a lowered cut-off grade reflecting the stronger tungsten price environment, enhancing the project's scale and economic potential.
Mt Mulgine Drilling Campaign Kicks Off to Expand Global Resource
Meanwhile, Tungsten Mining has launched its largest drilling campaign yet at the Mt Mulgine project in Western Australia, aiming to expand one of the world's largest undeveloped tungsten resources. The program includes approximately 130 reverse circulation (RC) holes totaling 40,000 metres and 37 diamond holes for 4,700 metres, designed to test extensions beneath the existing Mulgine Trench Mineral Resource and provide critical metallurgical and geotechnical data for the ongoing Pre-Feasibility Study (PFS).
Mt Mulgine, which hosts a combined Indicated and Inferred Mineral Resource of 247 million tonnes at 0.11% WO3 along with valuable by-products like molybdenum, copper, gold, and silver, represents Tungsten Mining’s long-term growth platform. The PFS is targeted for completion in Q3 2026, with assay results from the drilling campaign expected to progressively inform resource expansion and mine design.
Corporate Moves Support US Listing Ambitions
In a strategic move to access US capital markets, Tungsten Mining appointed Grant Thornton, a PCAOB-registered auditor, to oversee its financial audits, a prerequisite for its planned Nasdaq listing. Preparations for the listing continue alongside ongoing funding discussions, including debt and strategic capital alternatives to support the company’s aggressive development strategy.
The company ended the quarter with a healthy cash balance of A$49.1 million, providing a solid financial foundation to advance both Watershed’s near-term development and Mt Mulgine’s resource expansion. Commercial engagement with potential customers, refiners, and traders across Asia, Europe, and North America also progressed, focusing on concentrate specifications and product qualification.
Hatches Creek Project Remains Early-Stage but Promising
Tungsten Mining continues to evaluate development options at its Hatches Creek project in the Northern Territory, where historical high-grade tungsten mining occurred. The company holds 100% interest following recent acquisitions and is advancing approvals in consultation with local authorities. A maiden Mineral Resource Estimate released in May 2025 reported an inferred resource of 12 million tonnes grading 0.17% WO3 and 0.12% copper, highlighting the project’s potential as a future contributor.
Execution Focus for September Quarter
Looking ahead, Tungsten Mining plans to accelerate execution across its portfolio. At Watershed, a 15,000-metre infill drilling program is set to commence, supporting Ore Reserve conversion and mine optimisation. Front-End Engineering Design (FEED), long-lead procurement, and funding workstreams will advance toward the September FID target.
At Mt Mulgine, drilling will continue with assay results reported as available, alongside metallurgical, geotechnical, and engineering studies to underpin the PFS. Corporate efforts will also focus on progressing the US listing and commercial discussions.
While the Watershed PEE presents compelling economics, the company cautions that the production target includes inferred resources, which carry a low level of geological confidence. The targeted FID and production timelines depend on multiple assumptions including financing, approvals, and board decisions, with no guarantee these milestones will be achieved as planned.
Bottom Line?
Tungsten Mining’s Watershed project economics and Mt Mulgine drilling campaign set the stage for critical development decisions in the coming months, but execution risks and resource confidence remain key variables to watch.
Questions in the middle?
- Will Tungsten Mining secure the necessary funding and approvals to meet its September 2026 FID target for Watershed?
- How will assay results from the Mt Mulgine drilling campaign influence resource upgrades and the Pre-Feasibility Study outcome?
- What impact will the planned US Nasdaq listing have on Tungsten Mining’s capital structure and investor base?