REG - Tungsten West PLC - Interim Tungsten and Tin Production

Tungsten WestAnnouncement

02/06/2023 07:00

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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 £0.4 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 Adviser)

 Tel: +44 (0) 1752 278500                                                 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 / Jay Ashfield

 Tel: +44(0) 20 7138 3204                                                 +44 (0)20 7907 8500

 Email: tungstenwest@blytheray.com (mailto:tungstenwest@blytheray.com)

                                                                          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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