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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (96697)	12/17/2012 8:54:44 PM
From: LoneClone	Read Replies (1) \| Respond to of 192642

Tungsten Mining closes at a premium after first trading day Tuesday, December 18, 2012 by John Phillips proactiveinvestors.com.au Tungsten Mining (ASX: TGN) hit the ASX boards at 2pm EST yesterday and traded as high as $0.21, before closing at $0.205 - a 2.5% premium to the IPO price. The Tungsten Mining prospectus offered 25 million shares at $0.20 to raise $5 million, with oversubscriptions allowed for another $3 million. The company has leveraged itself to upside in demand for tungsten, and is amalgamating the rights to mineralisation in three groups of tenements in Western Australia and one in the Northern Territory. Tungsten Mining will focus on bringing its core Kilba Well project into early development, which is located in the wholly owned Gasgoyne Project, which the company said has all the right characteristics to allow rapid progress through to production. Kilba Well is based on the historical exploration and test work carried out in the 1980's by Union Carbide Corporation on a portion of the Kilba Well deposit that is shallow, has simple metallurgy and is situated on a granted mining lease. This has provided Tungsten Mining with an exploration target of 1.3-1.5mt at 0.7-0.9% WO3 (10,000-12,000 tonnes WO3), with the company planning to progress the project through the JORC Resource process, feasibility studies and into production, focussing on a quick route to positive cash flow. Project breakdown - 100% interest in the Gascoyne project (which includes the Kilba Well project); - 100% interest in the Mosquito Creek project; - 100% interest in the Koolyanobbing project; and - 20% interest in the Callie Soak project. Global tungsten demand forecast to rise Global tungsten consumption is expected to be 100,000 tonnes in 2012, of which it is estimated 70,000 tonnes will be newly-mined tungsten and 30,000 tonnes recycled. Annual consumption is expected to grow by 6% per annum in line with projected global GDP growth. China is the dominant global producer, producing 80% of global supply but has begun to implement measures to conserve its resources, such as restrictions on export licences and implementation of quotas and tariffs. In response to China’s restrictions the U.S., Japan and European Union have declared tungsten to be a critical raw material and a strategic metal. Supply and demand are currently in balance, however with no significant new sources of supply to meet the expected demand growth, the tungsten price has increased 3-fold in the past 3 years, to USD$21,000 per tonne for typical ex-mine concentrates with 68% contained WO3.