An independent study on Ormonde Mining's Barruecopardo tungsten project in Spain has found that an open pit mine at the site could generate €9.3m a year for 10 years.
The figure, calculated by Scott Wilson Mining, is calculated on the basis of the current price of tungsten and the current estimates of the site's resources.
But Ormonde says the mine could bring in €13.7m a year if tungsten prices rise, as some market analysts suggest, due to a shortage of the metal.
The initial capital cost for a mine producing 500,000 tonnes a year is estimated to be €29.9m.
'The study supports the directors' view that Barruecopardo would be amongst the largest producers of tungsten in the world outside of China, with real potential to further increase production rates post start-up,' said managing director Kerr Anderson.
Ormonde has a 90% interest in the Barruecopardo project in a joint venture with the regional government affiliated company Sociedad de Investigación y Explotación Minera de Castilla y León (SIEMCALSA), which holds 10%.
