Development work at the Barruecopardo tungsten project in Spain, managed and 30%-owned by Ormonde Mining Ltd (LON:ORM), is beginning to gather momentum.
The company anticipates mine commissioning in the third quarter of 2018, and reports that much of the necessary equipment is now being manufactured, with more on order, while on the ground construction of the workshop, offices and other infrastructure is underway.
Several construction contracts have been awarded, including for dams and civil works, with main dam construction work underway.
What’s more, some 50 persons are now working on the project, including a majority from Barruecopardo and immediately adjacent towns.
This is all happening against a backdrop of strengthening tungsten prices. The APT price continues to perform strongly, with significant price rises seen over recent months to a current level of US$285-300/mtu.
This represents an increase of 30% on the prevailing price when the decision was taken to move to accelerated construction, and an 80% increase from the January 2016 low.
"With the very positive decision, taken in early June this year, to advance the project into an accelerated construction and implementation phase, the intervening period has been exceptionally busy at the Project,” said Ormonde managing director Steve Nicol.
“The speed and scale of the works progressed over this period has only been possible as a result of the meticulous preparation activities performed by the project team over the past months.”
In late afternoon trading, Ormonde Mining shares were over 11%, or 0.25p higher at 2.43p.
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