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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (36259)	3/18/2007 9:09:09 PM
From: E. Charters	Respond to of 78416

Scheelite prices are not that bad.. apparently. Takes research. I thot it was at a great discount to APT. Break even it is.. ********************************** This is from another mine work up.... Tungsten prices escalated substantially since GTN first negotiated the option to acquire ATPL. Tungsten prices are quoted in US$ per metric tonne unit - mtu. An mtu is one hundredth of a tonne. In August 2004 when GTN first secured an option to acquire ATPL, the scheelite concentrate price was quoted by Metal Pages at US$60 to US$65 per mtu. On 24 May 2005, the date of the General Meeting of GTN’s shareholders, the Metal Pages quote was US$235 to US$240 per mtu, some US$160 per mtu above the long term price used by Resource Equity Consultants Pty Ltd (“REC”) for its King Island Scheelite Mine valuation. As part of the Pre-Feasibility Study, GTN completed a review of the supply and demand outlook for tungsten. As with many other commodities, there is strong global demand growth for tungsten. Chinese output has dominated tungsten supply over the past 15 years. However declining ore grades in China and rapidly growing internal demand have led to a situation where supplies entering the western markets from China are rapidly declining. There are few western mines able to take up the shortfall, leading to the current tight supply situation. GTN’s review of supply and demand indicates that the sustainable long term price for tungsten oxide (“WO3”) may be around US$100 per mtu. This review showed that the redeveloped King Island scheelite project should be well placed on the supply cost curve, being one of the lower cost sources of tungsten on both an operating and capital cost basis. Visits to the mine site have recently been made by several major global tungsten concentrate buyers. ****************************