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Wolf Minerals (ASX:WLF LON:WLFE) can increase the reserves at its Hemerdon tungsten mine in Devon by between 15-23% through steeper mining a new study has indicated.
A shallow drilling program at Hemerdon a stone’s throw from Plymouth pointed to additional four to six million tonnes of ore by steepening the open pit walls and broadening the perimeter within the existing planning permission.
This would increase reserves and extend the mine life.
Further resources may be available through a change in the planning permission's open pit boundary to allow access to the Southern Extension.
The six hole program drilled 1140 metres around the perimeter of the Hemerdon open pit with the aim of optimising the slope angles.
Wolf said that the majority of previous drilling concentrated on the ore body rather than the surrounding waste rock.
As a result pit slope angles were conservatively designed at between 35° and 44° with flatter slopes near the surface reflecting weathered rock conditions.
Following the completion of the drilling and geotechnical analysis pit design work using the revised slope parameters will get underway which will lead on to the ore reserves being revised.
Wolf’s managing director Russell Clark says the mine should produce revenues of around $US100mln a year for the firm with annual profits in region of US$60mln.
Up to 80% of the tungsten concentrate from the mine will be sold to US-based Global Tungsten & Powders and Austrian firm Wolfram Bergbau und Hutten – two of the world’s largest end users.
There is also a tin marketing agreement in place with Traxys.
Clark expects the mine to produce 3450 tonnes of Tungsten each year and around 460 tonnes of tin.
He added that there is potential for underground mining at the site in the future.
“This program was made possible through the funding received from the equity raise earlier this year and has been designed to add value through increasing reserves mine life and therefore revenue" said Clark
“Initial analysis suggests this could be the case and we will now undertake detailed design work and reserve re-estimation. We expect this work to be completed in January 2015.
“In the meantime we continue to focus on the construction of the processing plant and remain on budget and on schedule to be producing in the third quarter of 2015.
Wolf has planning permission for a ten year life of mine. The existing proved reserves are 27mt of wolframite which contains the tungsten at a decent grade of 0.19%.
Hemerdon will be the first new mine to open in the UK for forty years.
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