New York- and London-listed Guardian Metal Resources finds in a prefeasibility study (PFS) that the Pilot Mountaintungsten project, in Nevada, can viably produce 15 916 t/y of tungstentrioxide over an eight-year mine life.
The study results indicate that using a conventional openpit mining method and base case tungsten pricing of $197 300/t of tungsten trioxide, Pilot Mountaincan generate after-tax free cash flow of $1-billion, with a capital payback period of one year from first commercial production.
The project has a net present value of $660-million and an internal rate of return of 59.6% at base case tungsten prices, however, these values increase to $1.3-billion and 101%, respectively, at the current tungsten spot price of $304 000/t.
At spot prices, Pilot Mountain can generate after-tax free cash flow of $2-billion.
The PFS includes an updated mineral resource estimate covering two project zones – Garnet and Desert Scheelite – as well as a mineral reserve statement for the project.
Guardian Metal CEO Oliver Friesensays the PFS would not have been possible without support from the US Department of War, which invested $6.2-million in the company’s subsidiary, Golden Metal Resources.
“We are delivering this PFS at an inflection point: we believe the global tungsten market is undergoing an unprecedented structural reset and the world is waking up to the immense importance of securing reliable, home-grown critical mineral supply.
“The PFS establishes the project as one of the more compelling tungsten development opportunities in the Western world. It demonstrates robust economics using conservative pricing assumptions, with considerable upside at current tungsten prices, and the project’s exploration potential,” Friesen states.
Production from the Pilot Mountain project is targeted for the fourth quarter of 2028.
Meanwhile, the project’s current mineral resources increased to 21 600 t of tungsten trioxide in the indicated category, with probable reserves totalling 20 275 t of tungsten trioxide