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 world’s largest high-grade tungsten skarn with an indicated resource of 33 million tonnes grading 0.88% WO3 plus 11.9 million inferred tonnes at 0.78% WO3 within four mineralized zones.
A cutoff grade of 0.5% WO3, used by engineering firm Scott Wilson RPA in the estimates, was deemed appropriate for Mactung’s 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 metric tonne units (MTUs) of contained tungsten (WO3) is estimated within the indicated resource with another 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 2-year average following a significant rise in early 2005 from about US$65-US$90 per MTU.
Tungsten mineralization at Mactung 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 on exploration, several hundred metres of underground development and engineering studies from the 1970s to the 1980s. A historic resource estimate of 30 million tonnes grading 0.94% WO3 was tabled in 1982, nearly leading to a production decision. However, the project was shelved due to deteriorating tungsten prices at the time.
Mactung is located about 160 km northwest of North American Tungsten’s Cantung mine, which restarted production in late 2005 and is the Western World’s largest supplier of the specialty metal.
February production at the mine totalled 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 previous months.
From 1962 to 1986, Cantung produced about 10% of the world’s 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.
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