Vancouver – North American Tungsten (NTC-V, NATUF-O) has put forward an updated resource estimate for its Mactung project located near MacMillan Pass on the Yukon-Northwest Territories border.
The study confirms Mactung as the worlds largest high-grade tungsten skarn with an indicated resource of 33 million tonnes grading 0.88% WO3 plus a further 11.9 million inferred tonnes at 0.78% WO3 within four mineralized zones.
A cut-off grade of 0.5% WO3 was used in the estimates conducted by engineering firm Scott Wilson RPA, deeming that appropriate for Mactungs location and cost profile.
Additionally, higher-grade portions were identified within the resource review. About 22.2 million indicated tonnes and 4.6 million inferred tonnes average above 1% WO3.
A total of 29 million MTUs (metric tonne units) of contained tungsten (WO3) is estimated within the indicated resource with an additional 9.2 million contained MTUs projected to be in the inferred resource. One MTU is equal to 10 kg of WO3 per tonne, or 7.93 kg of pure tungsten, and is the standard weight measure used in the industry.
Recent tungsten pricing of about US$260 per MTU falls within a two-year average following a significant rise in early-2005 from the US$65-to-90 per MTU level.
Tungsten mineralization occurs as disseminated scheelite in a limestone-hosted calc-silicate skarn.
North American Tungsten chairman and CEO Stephen Leahy confirmed the company has engaged Strathcona Mineral Services to conduct an economic review and update of previous feasibility reports, done in the early-1980s, on Mactung. He anticipates a preliminary assessment around the middle of this year.
Discovered by Amax in the early-1960s, about $26 million was previously spent on Mactung in exploration, several hundred metres of underground development and engineering studies from the 1970s to the 1980s. An historic resource estimate of 30 million tonnes grading 0.94% WO3 was tabled in 1982, almost leading to a production decision but was shelved due to deteriorating tungsten prices at the time.
Mactung is located about 160 km northwest of North American Tungstens Cantung mine that restarted production in late-2005 and is the western worlds largest supplier of the specialty metal.
February mine output was 24,472 MTUs of tungsten concentrates from ore averaging 1.54% WO3. Recoveries of 74.1% were tabled for the month and were noted as a marked improvement over prior months.
From 1962-to-1986 Cantung produced about 10% of the worlds total tungsten production.
As tungsten possesses a very high melting point and hardness second only to diamond, it is primarily used as filaments in lights bulbs, in electronics and as a hardening alloy in steels for uses from drilling to aerospace applications.
With 106.3-million shares outstanding, North American Tungsten posts a $112-million market capitalization at its recent $1.05 share price. The stock has a 52-week trading range of 50-to-$1.50.
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