Tungsten Mining aims to begin production at Watershed in Far North Queensland in 2027 after a preliminary economic evaluation confirmed strong potential.

With granted mining leases and primary approvals already in place, the company is advancing towards a final investment decision in September.

“The study highlights strong project economics and a clear, executable path to production in context with a compelling tungsten market,” Tungsten Mining chairman Gary Lyons said.

The tungsten operation would cost $274 million to bring online and deliver a pre-tax NPV of just over $1.3 billion, according to the evaluation.

The site, 130km north of Cairns, has a mineral resource estimate of 69.7Mt grading 0.11 per cent tungsten trioxide.

The project is exepcted to have a life-of-mine of about eight years (with the processing plant continuing to operate for a further seven years), producing an estimated 31,350 tonnes of tungsten concentrate.

Next steps:

• All major approvals including an environmental authority, in place; secondary approvals progressing to facilitate site works
• An infill drilling program exceeding 15,000m commencing next month to support resource definition in areas targeted for initial mining
• Early works to support site establishment expected to commence this month including civil works for the access road and laydown areas
• Detailed civil engineering commenced, FEED phase for facilities to commence in July
• Targeting an initial preliminary investment decision to enable procurement of long-lead items, followed by a final investment decision in September
• First production targeted at the end of the first half in 2027