Tungsten West PLC Interim Tungsten and Tin Production (4242B)
June 02 2023 - 2:00AM
UK Regulatory
TIDMTUN
RNS Number : 4242B
Tungsten West PLC
02 June 2023
2 June 2023
Tungsten West Plc
("Tungsten West", the "Company" or the "Group")
Project Update
Interim Tungsten and Tin Production
Tungsten West (LON: TUN), the mining company focussed on
restarting operations at the Hemerdon tungsten and tin mine
("Hemerdon" or the "Project") in Devon, UK, is pleased to announce
that it has now completed processing of its legacy tungsten
pre-concentrate and tin concentrate through commissioning of the
refinery portion of its Mineral Processing Facility ("MPF"),
thereby facilitating the future recommencement of tungsten and tin
production at Hemerdon. This commissioning work was undertaken with
the requisite temporary environmental permit from South Hams
District Council, where Tungsten West has successfully
recommissioned the dry section of the refinery within the Hemerdon
MPF, with zero safety or environmental incidents.
As part of this recommissioning work, the Company has processed
legacy tungsten pre-concentrate and tin concentrate, as well as a
limited amount of residual material remaining in circuit since the
historical closure of the previous operation, totalling just over
50 tonnes. As a result, combined with other legacy material that
does not require re-processing, Tungsten West has generated four
lots of material for sale, two of tungsten concentrate and two of
tin concentrate. This material was shipped to an off-taker on 31
May 2023.
These activities form part of the Company's plan in continuing
to move towards future regular production, liquidating assets left
by the previous operator and making use of past materials which
have already been crushed and separated. Management forecasts more
than GBP0.4 million in revenue from these operations, which have
also provided valuable insight into the future operating parameters
for the crucial ore dressing stage of the beneficiation
process.
The cost reduction programme initiated by management is nearing
completion. On its conclusion, management forecast a 42% reduction
in headcount via redundancy and resignations.
Monthly recurring payroll costs are expected to reduce by 42% in
line with the reduction in headcount. The one-off cost associated
with the cost reduction programme is forecast to be minimal and
mostly comprised of contractor project suspension fees.
Project capex for the front-end re-build has been scaled back to
existing capital commitments for equipment purchase and
low-frequency noise trial work. Refurbishment work within the plant
has also halted until the permitting and funding processes are
complete.
Ongoing opex will be in line with previous guidance and remains
concentrated on key workstreams associated with securing the
section 73 planning permission and the outstanding permit, care and
maintenance, compliance with existing obligations and securing
funding.
Management is pleased to have completed this process with
negligible one-off costs and does not currently consider it
necessary to write down the carrying value of any of the group's
assets under construction.
Preparations for the full-scale Project development are ongoing.
The Company continues to work closely with the Environment Agency
and Devon County Council, to secure the final permit for operating
the MPF, and to ensure the planning process continues to run
smoothly.
Neil Gawthorpe, Chief Executive Officer of Tungsten West,
commented: "We are excited to announce the interim recommencement
of operations at the Hemerdon mine. This small-scale production of
tungsten and tin is a mere indication of what can be achieved once
the mine is fully re-opened. The success of the recommissioning of
the dry section of the refinery has also provided us with valuable
insight into the future operating parameters.
"We are dedicated to building and operating this mine with the
support of all key stakeholders, especially our local communities,
in order to create a responsible mining operation and sustainable
source of tungsten and tin concentrate in South Devon."
Enquiries
Tungsten West Strand Hanson
Neil Gawthorpe/ Nigel Widdowson (Nominated Adviser and Financial
Tel: +44 (0) 1752 278500 Adviser)
James Spinney / James Dance /
Abigail Wennington
Tel: +44 (0) 207 409 3494
BlytheRay Hannam & Partners
(Financial PR) (Joint Broker)
Tim Blythe / Megan Ray Andrew Chubb / Matt Hasson /
Tel: +44(0) 20 7138 3204 Jay Ashfield
Email: tungstenwest@blytheray.com +44 (0)20 7907 8500
VSA Capital Group plc
(Joint Broker)
Andrew Raca / Andrew Monk
+44 (0)20 3005 5000
Follow us on twitter @TungstenWest
Ends
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