North American Tungsten starts to review start-up plans
North American Tungsten Corporation Ltd NTC
Shares issued 26,237,364 Sep 21 close $0.21
Wed 22 Sept 99 News Release
Mr. Udo von Doehren reports
An article in the Metal Bulletin of Sept. 13, 1999, states that China's tungsten producers are continuing to raise ammonium paratungstate (APT) sales prices on a monthly basis.
A Chinese official is quoted as saying that producers are aiming for an APT price above $70 (U.S.) per metric tonne unit (mtu). This price level represents another 25-per-cent price increase since the beginning of September, 1999.
These dramatic price increases will likely add to the tightness of available tungsten concentrates and translate into higher prices from the current quoted price of up to $48 (U.S.)/mtu for tungsten concentrate. The company has started to review its start-up plans in view of these positive developments in the tungsten market.
Subject to sustainable market conditions and availability of start-up capital, preliminary studies indicate that a concentrate selling price in the range of $55 (U.S.)/mtu to $60 (U.S.)/mtu of concentrate will return an attractive internal rate of return over the remaining minable reserve of approximately 900,000 mtus. Underground exploration is expected to increase the mine life.
Prior to the depletion of minable reserves at the CanTung mine, the MacTung project, the largest proven high-grade deposit in the Western world, will be scheduled to be brought into production. However, because of the capital requirements, a higher concentrate selling price is required to provide a satisfactory return.
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