Hazelwood Resources reports 72% jump in tungsten resource at Big Hill deposit

Hazelwood Resources (ASX: HAZ), which is completing feasibility studies on its 100% owned Big Hill Tungsten Deposit in Western Australia’s east Pilbara region, has announced an interim upgrade to the JORC Resource.

The higher category resources, suitable for inclusion in feasibility studies, have increased by 72%. Further resource upgrades are expected as drilling continues.

The company said production at Big Hill is due to start in 2011 and will produce around 3% of the world’s supply of primary mined tungsten.

“The Big Hill deposit is mostly near the surface and needs almost no stripping to get the mine started. The metallurgy is proven through extensive testwork and we are currently doing significant pilot scale testing," said Hazelwood Managing Director Terry Butler-Blaxell.

"We can bulk mine and process at low cut-off grades and therefore mine more of the deposit,” he added.

The pre-feasibility study at Big Hill, which had been extended to examine downstream processing, is imminent, according to the company. Major packages of work for a definitive (bankable) feasibility study are currently being completed.

“We’re fully funded through to definitive feasibility study at Big Hill,” said Butler-Blaxell.

Earlier this week, Hazelwood announced its acquisition of a majority interest in a downstream ferrotungsten project in Vietnam that is due to be commissioned later this year.

The new plant will have capacity to produce 25% of the world’s ferrotungsten and be the leading producer of the product outside of China.

http://www.proactiveinvestors.com.au/companies/news/5997/hazelwood-resources-reports-72-jump-in-tungsten-resource-at-big-hill-deposit-5997.html