Mt Mulgine PFS Confirms World-Scale Tungsten Project with A$870M Capex

Mt Mulgine PFS Establishes World-Scale Tungsten Operation

Tungsten Mining NL (ASX:TGN) has released a detailed investor presentation reinforcing the Mt Mulgine Project’s status as a world-scale tungsten development. The Pre-Feasibility Study (PFS) outlines a base case with an 8 million tonnes per annum (Mtpa) mine plan supporting a 21-year lifespan and first production targeted for July 2029. The project’s initial capital expenditure is pegged at A$870 million, with a robust pre-tax net present value (NPV) of A$6.8 billion and an internal rate of return (IRR) of 55% based on Fastmarkets’ tungsten price forecasts.

Mt Mulgine’s scale and economics position it to become a major player in the global tungsten market, which faces a tightening supply scenario due to Chinese export controls and growing demand from aerospace, defence, and manufacturing sectors. The project’s all-in sustaining cost (AISC) is estimated at US$127 per metric tonne unit (MTU) of WO3, placing it among the lowest-cost tungsten producers worldwide.

Funding Strategy and Market Context

Tungsten Mining plans a diversified funding approach for Mt Mulgine, considering debt, equity, strategic investments, and potential cash flow from its Queensland-based Watershed Project. Watershed, with a pre-tax cash flow forecast of approximately A$395 million from mid-2027 to early 2028, could provide a significant financial platform to support Mt Mulgine’s development. The company has commenced engagement with various funding channels including export credit agencies, private credit, and offtake-linked financing.

The tungsten market fundamentals underpinning the project are compelling. Prices have stabilised above US$3,000 per MTU over the past six months amid a structural supply deficit. Global demand is forecast to grow at a compound annual growth rate of 3.4% through 2035, driven by sectors such as defence, general manufacturing, and energy, offsetting declines in some traditional uses.

Advancing Approvals and Drilling Programs

Key regulatory milestones are progressing on schedule. The Native Vegetation Clearing Permit has been submitted and is expected to be approved by late 2026, while the Mine Development and Closure Proposal is targeted for submission in early 2027. Water sourcing strategies have been defined, supported by ongoing drilling campaigns that have returned promising early results.

Exploration drilling is actively underway to convert inferred and unclassified mineral resources into the indicated category, enhancing geological confidence. A 130-hole reverse circulation (RC) drilling program is testing mineralisation continuity along strike and down-dip, with diamond drilling planned to support metallurgical testwork and geotechnical studies.

Robust Process Design and Cost Benchmarks

The PFS includes a detailed process flowsheet supported by extensive metallurgical testwork, confirming the viability of gravity and flotation circuits for scheelite and molybdenum recovery. Capital expenditure is broken down with process infrastructure accounting for 37.1% of direct costs, and contingency and escalation provisions at 14.8%.

Operating costs are competitive, with total site operating expenditure estimated at A$181 per tonne of ore, dominated by mining and processing expenses. Mt Mulgine’s cost position compares favourably against global tungsten producers, with a C1 cash cost of US$127 per MTU WO3, significantly below many existing operations.

Next Steps Towards Definitive Feasibility Study

The company targets completion of the Definitive Feasibility Study (DFS) by August 2027, running in parallel with ongoing approvals and land access negotiations. Early works and procurement phases are planned to commence in late 2027, leading to construction and commissioning phases through 2028 and 2029.

Metallurgical variability testing and pilot plant programs are scheduled to refine the process design and confirm mass balances. The project timeline anticipates first production in July 2029, contingent on securing necessary funding and regulatory approvals.