Exploration company Ormonde Mining has raised its estimates for the potential of its Barruecopardo tungsten project in western Spain.
This follows an update on a feasibility study for a mine at the site. Ormonde said interim estimates had shown a "material increase" in the amount of resources at the site.
Ormonde has raised its estimates of annual tungsten production by 60%. It has also lifted its estimate of pre-tax operating cash flow to around €20m a year.
The company says first production at the mine is planned for the second quarter of 2013. This is subject to completion of the feasibility study and progress on talks on financing the mine.
"We now move forward with a project which will produce substantially more tungsten than previously envisaged," said managing director Kerr Anderson.
He said Barruecopardo would be a large-scale, low capital and operating cost mine, and would provide a secure source of "this strategic metal".
Shares in the company closed up 8.5% at 10 cent in Dublin.
