Tungsten Mining (ASX:TGN) is investigating various avenues to fast-track its Watershed project in Queensland on the back of an upsurge in tungsten prices. The global tungsten market is expected to see a significant structural price surge in early CY26, with prices reaching record highs due to tight supply.
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At the same time, Tungsten Mining has commenced a project economic evaluation (PEE) of the Watershed project near Cairns.
Watershed currently holds granted mining leases and an approved environmental authority, and the PEE is assessing accelerated development options aimed at leveraging those existing project approvals.
The increase in activity includes a planned drilling program in the second quarter to test known high-grade mineralised zones near-surface. Elsewhere, engineering is reviewing infrastructure, water and power requirements, while work is also focused on the creation of an optimised. flowsheet design.
Chairman, Gary Lyons, said project evaluation is scheduled for completion in Q2 CY26 ahead of a potential transition to early front-end engineering design.
Meanwhile, the company is progressing with a pre-feasibility study at the Mt Mulgine project in Western Australia.
“Tungsten prices remain at elevated levels, underscoring the importance of the secure and timely supply of this important critical mineral. So, while Mt Mulgine progresses steadily through its PFS as a large, long-life strategic asset, the Watershed project reflects the operational flexibility of our portfolio by offering a potential near-term development and revenue-generation pathway supported by existing approvals and established technical work,” Mr Lyons said.
Previous Watershed owner Vital Metals identified an open-pit mining opportunity and completed a definitive feasibility study (DFS) in CY14. The project hosts a mineral resource estimate of 49.3Mt grading 0.14% tungsten trioxide.
Following the wet season, resource and metallurgical drilling is planned for Q2 CY26 subject to positive outcomes from the economic evaluation and board approval.
Tungsten and its alloys are amongst the hardest of all metals. Modern tech has included its use in electrodes, filaments (bulbs), wires, welding in electrical, heating, lighting, robotics and the aeronautical industry.
TGN was down -12.3%, to 28.5cps today.
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