Tungsten Mining (ASX:TGN) is aiming to take quick advantage of the high demand for tungsten in recent months with an aggressive drilling campaign planned for its Watershed project in Queensland this quarter.
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Shortages, coupled with major demand increase forecasts, have seen tungsten prices continuing to reach record highs through CY26.
Tungsten’s chairman, Gary Lyons, said Watershed drilling reflects the company’s drive to leverage robust conditions to potentially accelerate development of a significant tungsten asset in a tier-one mining jurisdiction.
“Building on the substantial body of technical and environmental work completed under the 2014 definitive feasibility study, the current program includes reassessment of the geology to further define high-grade, near-surface mineralisation that may support consideration of an accelerated development strategy,” he said today.
“The evaluation is expected to continue through to Q3 and is intended to inform whether the company may consider a potential transition into early development, subject to board approval and positive evaluation outcomes.”
The Oz company is planning to drill 175 reverse circulation holes for 15,000 metres to further define several shallow high-grade tungsten zones within the greater Watershed mineral resource estimate (MRE).
Mr Lyons said a review of existing data indicates further infill drilling is required to define potential discrete high-grade plunging zones within the Watershed deposit. “Drilling is planned to infill the five most significant zones of near-surface high-grade mineralisation to 20m spacing,” he told shareholders.
The Tungsten Mining program is scheduled to commence in June. First results are expected approximately six weeks after commencement of drilling.
Located 130 kilometres north of Cairns, Watershed has previously been positively assessed by the DFS conducted by former project owner Vital Metals back in CY14, when tungsten prices were significantly lower.
Watershed boasts an MRE of 49.3 million tonnes (Mt) grading 0.14%.
TGN is steady at 27.3¢ today. Mkt cap $380.5M.
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