Tungsten West plc said it had progressed with preparations and filled key managerial team positions for restarting the Hemerdon tin-tungsten mine in Devon.
DESIGN
The company has signed the engineering procurement and construction management (EPCM) contract with UK-based Fairport Engineering Ltd.
Detailed design work for the front end of the processing plant are well advanced.
EQUIPMENT
Refurbishment of the existing processing plant at Hemerdon focuses on optimising the existing concentrator circuit and introducing a new crushing and screening circuit.
This will then feed into a new X-Ray Transmission ore sorting stage.
“These upgrades will streamline processing, minimise plant downtime and improve recovery rates,” said the company in a statement.
“After significant test work, Tungsten West engaged TOMRA to supply the seven units that are required to treat the run of mine throughput. This consists of six duty and one standby units.”
The units have arrived in the UK and await final transfer to Hemerdon for installation in the front end of the processing plant.
SCREENS
The company has ordered at fixed prices six new screens and 11 vibrating pan feeders from Vibramech of South Africa. Delivery is expected during Q2 2022.
These will replace the existing large screens, which caused the low frequency issues, and were a key contributor to plant downtime under previous owner Wolf Minerals.
FORECAST
Tungsten West estimates production of 3,500 tpa (3,500,000 MTU pa*) of tungsten in concentrate and 500 tpa of tin in concentrate.
At current prices, the company forecasts annual tungsten revenues of $92.8 million
FUNDING
The company said it had a strong balance sheet and cash position, and that conditions precedent (CPs) for drawing down the Orion Mine Finance royalty and project debt facilities were advancing well.
Tungsten West must meet a number of CPs in order to draw down on the $21m Orion Mine Finance royalty and on the $28m project finance facility.
*(1 MTU = 10 kg)