22nd Jan 2014 08:34
LONDON (Alliance News) - W Resources PLC Wednesday said final concentrate for production specification tests for La Parrilla tailings project in Spain have shown higher grades of tungsten.
The Tungsten exploration and development company, with operations in Spain and Portugal, said final test work at the ALS Chemex Vancouver labs support a concentrate specification of 63% tungsten, significantly higher than the company's target level of 50% tungsten, and 8% tin.
The company plans to begin production from tailings, the ground rock and process effluents generated by a mine processing plant, at the La Parrilla site next month.
W Resources said that discussions are underway with customers regarding sales contracts and it is expected that 100% of the planned production of 20 to 25 tonnes per month will be sold to 1 or 2 customers providing a strong base for revenue and growth.
Tungsten prices remain high at USD38,000 per tonne and the company insisted global demand remains strong.
W Resources shares were up 9.0% to 0.921 pence putting it among the top AIM gainers in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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