Tungsten Mining Reveals Globally Significant Critical Minerals Project with Mt. Mulgine Scoping Study
Tungsten Mining NL (ASX: TGN) has released compelling results from its Mt. Mulgine Scoping Study, positioning the project as one of the largest tungsten deposits outside of China. The comprehensive study demonstrates strong financial metrics with a pre-tax NPV of $1.0-1.4 billion and IRR of 30-45% for the preferred 6 Mtpa development case, rising to $1.7-2.3 billion NPV and 42-62% IRR for the 15 Mtpa scenario.
Located 330 km northeast of Perth in mining-friendly Western Australia, Mt. Mulgine represents a 23-year mine life producing critical minerals including tungsten, molybdenum, copper, gold, and silver. With tungsten prices at all-time highs of US$689/MTU following China's export restrictions, the project addresses growing global supply deficits in this strategic metal.
Strong Financial Performance Across Development Scenarios
The Scoping Study examined two development pathways, both delivering robust returns that significantly outperform traditional mining projects:
| Metric | 6 Mtpa Case | 15 Mtpa Case |
|---|---|---|
| Pre-Tax NPV8% | $1.0-1.4B | $1.7-2.3B |
| Pre-Tax IRR | 30-45% | 42-62% |
| Initial CAPEX | $358-495M | $631-868M |
| Payback Period | 2.2-3.8 years | 1.6-2.2 years |
| Mine Life | 23 years | 10 years |
| Post-Tax Cashflow (LoM) | $1.98-2.56B | $2.14-2.73B |
The financial modelling uses conservative commodity pricing well below current spot rates, with tungsten at US$425/mtu versus the current US$689/mtu, creating substantial upside potential. At spot prices, the 6 Mtpa case delivers an exceptional NPV of $2.4-2.8 billion.
Furthermore, these projections demonstrate considerable strength when compared to industry benchmarks. The impressive returns reflect both the quality of the deposit and the strategic timing of development during a period of supply constraints.
Globally Significant Resource Base Powers Production Profile
Mt. Mulgine's 259 million tonne resource containing 290,000 tonnes of WO₃ ranks among the world's largest tungsten deposits outside China. The polymetallic nature delivers diversified revenue streams across multiple critical minerals.
Annual Production Targets (6 Mtpa):
- 4,543 tonnes WO₃ (tungsten concentrate)
- 1,178 tonnes molybdenum
- 1,301 tonnes copper
- 9,580 ounces gold
- 531,284 ounces silver
The project benefits from a low 0.8:1 strip ratio and conventional processing flowsheet, supporting competitive operating costs of $25.4-30.8 per tonne. Preliminary metallurgical testing confirms strong recovery rates of 72.5% for tungsten and 70% for molybdenum.
In addition, this multi-commodity production profile provides natural hedging against commodity price volatility whilst maximising resource extraction efficiency. The diverse metal portfolio positions the project favourably across multiple market cycles.
Understanding Tungsten's Critical Importance
Tungsten (wolfram) is an ultra-hard metal essential for high-temperature industrial applications, defence systems, and advanced manufacturing. Its unique properties make it irreplaceable in cutting tools, aerospace components, and electronics.
For investors, tungsten's significance lies in its supply concentration risk. China controls 80% of global production while Western demand grows rapidly. Recent Chinese export restrictions have created severe supply shortages, driving prices to record levels and highlighting the strategic value of Western deposits like Mt. Mulgine.
The metal's exceptional properties include the highest melting point of any element (3,414°C) and extreme hardness when combined with other materials. These characteristics make tungsten indispensable for manufacturing cutting tools that machine steel, drilling equipment for oil and gas exploration, and components in jet engines.
Key Investment Drivers
However, the investment case extends beyond technical properties to market fundamentals:
- Global tungsten market expected to reach US$11.6 billion by 2033 (7.8% CAGR)
- Limited new supply projects globally
- Strong geopolitical tailwinds supporting Western sources
- Tungsten classified as critical mineral by major governments
Strategic Development Timeline and Next Steps
Tungsten Mining has outlined an accelerated development pathway targeting first production by Q3 2029. This timeline reflects careful planning to capitalise on current market conditions whilst maintaining operational excellence.
Key Milestones
- Q4 2025: Commence Pre-Feasibility Study (PFS)
- Q2 2026: Complete PFS
- Q3 2026: Begin Definitive Feasibility Study (DFS)
- Q4 2027: Final Investment Decision
- Q3 2029: First concentrate production
The company plans to engage with offtake partners and explore strategic partnerships during 2026, while pursuing potential NASDAQ listing to access international capital markets. Management will also engage with Critical Minerals Offices globally to capitalise on government support programmes.
Moreover, this timeline provides multiple value inflection points for investors whilst maintaining realistic development expectations based on industry benchmarks.
Management Commentary
"These scoping study results validate Mt. Mulgine's position as a globally significant tungsten development opportunity. The robust economics, combined with our strategic location in Western Australia, position us to meet growing Western demand for critical minerals sourced from trusted jurisdictions."
Competitive Advantage in Critical Minerals Market
The Mt. Mulgine tungsten deposit by Tungsten Mining NL addresses multiple investment themes converging in today's market. The project delivers exposure to tungsten's supply crisis while providing commodity diversification through molybdenum, copper, and precious metals production.
Located in tier-1 jurisdiction Western Australia, it offers political stability that Chinese-dominated supply chains cannot match. This jurisdictional advantage becomes increasingly valuable as Western governments prioritise supply chain security for critical minerals.
The financial metrics demonstrate exceptional value creation potential. Even conservative modelling delivers 30-45% IRR with 2.2-3.8 year payback, while spot pricing scenarios show NPV upside of over 100%. The $358-495 million initial investment appears modest for a 23-year, globally significant operation.
Comparative Analysis
TGN trades at just $411 per tonne contained WO₃ versus peers averaging $33,000-51,000, highlighting significant valuation upside as the project advances toward production. This discount reflects the early-stage nature of the project whilst providing substantial re-rating potential.
Technical Processing Advantages
The Mt. Mulgine tungsten deposit by Tungsten Mining NL benefits from conventional processing techniques that reduce technical risk. The flowsheet employs three-stage crushing followed by primary gravity concentration and sulphide flotation for molybdenum and copper-gold-silver separation.
Final tungsten recovery utilises scheelite secondary gravity and flotation. This proven approach contrasts with complex processing requirements at many tungsten deposits globally. The conventional nature of the flowsheet supports both the competitive cost structure and development timeline certainty.
Infrastructure and Operational Benefits
Mt. Mulgine's location provides significant logistical advantages within Western Australia's established mining infrastructure. The site is easily accessed by sealed road and sits 250 km from Geraldton Port. This proximity to established export infrastructure reduces logistics costs and complexity compared to remote tungsten projects globally.
The project design incorporates reliable onsite power through gas-fired generation supplemented by renewable energy sources. Water supply is expected to be derived from fractured rock and paleochannel systems, with potential supplementation from regional basin systems.
Workforce Strategy
- Access to highly skilled local workforce
- Chartered flights from Perth to nearby airstrips
- DIDO from Geraldton, FIFO from Perth
- Permanent onsite camp comprising 250-300 rooms
Consequently, these infrastructure advantages translate directly into operational cost savings whilst ensuring reliable supply chain access for both inputs and product exports.
Why Investors Should Monitor Tungsten Mining
Tungsten Mining has positioned itself as a leading Western tungsten developer during a period of unprecedented market opportunity. The Mt. Mulgine Scoping Study validates the technical and economic viability of developing one of the world's largest tungsten deposits outside China.
Multiple catalysts over the next 24 months provide regular newsflow, including PFS completion, strategic partnerships, potential NASDAQ listing, and resource expansion drilling. With tungsten at all-time highs and supply deficits deepening, TGN offers leveraged exposure to critical minerals themes while maintaining diversified commodity exposure.
The Mt. Mulgine tungsten deposit by Tungsten Mining NL represents a convergence of favourable market conditions, strategic location, and robust project economics. The scoping study demonstrates that Western Australia can host globally competitive tungsten operations that serve as alternatives to Chinese supply chains.
Investment Risk Considerations
While the Mt. Mulgine tungsten deposit by Tungsten Mining NL presents compelling economics, investors should consider standard development risks. These include commodity price volatility, regulatory approvals, construction execution, and funding requirements estimated at $358-495 million for the initial development case.
Nevertheless, the company's comparative valuation suggests significant upside potential if development milestones are achieved successfully. The $145.6 million market capitalisation represents substantial discount to peer valuations on a per-tonne contained tungsten basis.
Key Investment Takeaway
The combination of exceptional resource quality, robust economics, strategic jurisdiction, and accelerated development timeline creates a compelling investment proposition in the rapidly evolving critical minerals sector. Tungsten Mining has delivered a world-class scoping study demonstrating the potential to develop a globally significant tungsten operation in Western Australia.
With tungsten prices at record highs and Chinese supply restrictions tightening, Mt. Mulgine represents strategic exposure to one of the world's most critical metals shortages. Investors should closely monitor upcoming milestones as the company advances toward production in an increasingly supply-constrained tungsten market.
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