Exploration company Ormonde Mining says it will move forward with plans to develop a tungsten mine at its Barruecopardo project in Spain after the final results of a feasibility study.
Ormonde says the study has confirmed the technical viability and "strong economics" of the project, based on an average production of 227,000 metric tonne units (MTUs) of the metal a year.
The study estimated that the mine would generate annual pre-tax operating cash flow of €29m, based on a tungsten price of $350 per MTU, well below the current price of $437.
The study found that the mine would cost €48.5m to develop and cost $99 per MTU to run. The company will now seek capital funding for the project, and aims for the mine to start operating in the third quarter of 2013.
