Carbine Tungsten (ASX: CNQ) has closed another sale and offtake agreement for its high grade tungsten with Mitsubishi Corporation Unimetals Ltd.
The company is treating tailings from the Mt Carbine Tungsten mine in North Queensland.
First consignment of bulk tungsten concentrate product was despatched to Brisbane for shipment from its tailings recovery facility on 28 June 2012.
CNQ has also been holding discussions with a number of potential off-take and investment partners for its Hard Rock Project.
That is scheduled to produce an average annual production of 265,000 metric tonne units (mtu) of 100% WO3 commencing in early 2014.
A feasibility study found that the hard rock project is economically and practically viable.
Capital expenditure, including working capital, is estimated to be A$53.8 million, returning a pre-tax Internal Rate of Return (IRR) of 60% and Net Present Value (NPV) of A$161 million at a discount rate of 8%.
This is based on a product concentrate sales price averaging US$290 per metric tonne unit (mtu) over the ten-year period under consideration in the study
There is low-grade stockpiles and ore available for open-pit mining at a cut-off of 0.05% WO3. Together these provide a project life of more than 15 years.
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