Tungsten Testwork

RNS Number : 8671Q

Ormonde Mining PLC

21 April 2009

 



21st April 2009

Ormonde Mining plc

Tungsten Metallurgical Testwork Shows High Recoveries to Final Concentrates

DUBLIN & LONDON: 21st April 2009 - Ormonde Mining plc ("Ormonde" or the "Company") reports high tungsten metal recoveries in final concentrates at its Barruecopardo Tungsten Project, Spain (the "Project"). The results further support the Project's robust economics.

Main Points

• Preliminary results from a large sample composited from the Filon Principal and Filon Central Zones show that 78.4% of the contained tungsten can be recovered to a final cleaned scheelite concentrate at the industry standard grade of 65% WO3 (tungsten trioxide) for high grade concentrates

• These figures do not allow for additional recovery that would be realised through recirculation in an industrial scale processing plant, and it is anticipated that an overall metal recovery in excess of 80% should be readily achievable during continuous processing of this mineralisation

• The testwork has confirmed that a simple and low cost gravity process can be used to produce a pre-concentrate and that this gravity pre-concentrate can be cleaned up to produce a high grade tungsten concentrate.

Kerr Anderson, Managing Director, said:

"The testwork results confirm high levels of metal recovery to final tungsten concentrates as suggested by the excellent pre-concentrate grades and recoveries previously reported.  The recoveries achieved from a straightforward processing route follow on from the upwardly-revised production rate of 400,000 tonnes per annum reported in January, from the current mineral resources standing at 5.2Mt grading 0.48% WO3."

"The grades, metal recoveries and projected operating costs continue to support our view that Barruecopardo will be developed as a long-term and significant Western producer of tungsten concentrate.  This is supported by ongoing interest in the Project from third parties in the tungsten industry."

Tungsten Outlook

Structural changes and integration within the tungsten industry have continued in anticipation of future constraints in the supply of tungsten concentrates and secondary powders:

• In February Wolfram Bergbau, a major European secondary tungsten processor and primary mine producer, was acquired by Sandvik, a major tungsten tools manufacturer

• In March, Global Tungsten Powders, a major secondary tungsten processor, invested in Malaga Inc, a Canadian primary mine producer with a tungsten mine located in the High Andes of Peru.

The tungsten price has held up well compared to other commodities (the current Metal Bulletin APT price is $220 per mtu compared to the two-year average of $248 and September price of $255).  

Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.

A glossary explaining technical terms contained in this announcement can be found at http://www.ormondemining.com/invest/glossary.html.

Enquiries to:

Ormonde Mining plc

Kerr Anderson, Managing Director

Fraser Gardiner, Director

Tel: [phone]

Bankside Consultants

Simon Rothschild / Louise Mason  Tel: [phone] Mob: [phone]

Davy (Nomad / IEX Adviser)

Fergal Meegan Tel: [phone]

Brewin Dolphin (UK Adviser)

Alexander Dewar Tel: [phone]

ENDS

About Tungsten

Tungsten is most frequently used as tungsten monocarbide, which has a hardness close to diamond, in cemented carbides. The principal tungsten applications include its use in cutting steels and in tungsten alloys, electronics, and chemical products.

Prices of tungsten concentrates are expected to remain buoyant for the long term. More information can be found on Ormonde's tungsten information page at http://www.ormondemining.com/about-tungsten/index.html. 

About Ormonde

Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. Ormonde is a mineral development and exploration company focused on Spain, with the objective of developing mining projects and taking them into production.

For more information please visit www.ormondemining.com.

 

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