King Island Scheelite (ASX:KIS) has announced a new plan for its Dolphin tungsten project in Tasmania where it now expects to produce tungsten for about 4 years from an open cut mine where after it will go underground for another 9 years. The average annual output will probably be 400,000 tonnes per year which should produce 220,000 mtu/year in the first four years of operation. However, as the company plans to produce a flotation concentrate, it expects to receive a discounted price on the official APT price, and this discount could be as high as 25%.
King Island Scheelite owns 100% of the project which is a past-producing mine which ceased operations in 1990 due to the low tungsten price. The company expects to dewater the open pit in order to be able to start confirmation drilling later this year which will be helpful to ensure the quality of a definitive feasibility study.
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Disclosure: The author holds no position in King Island Scheelite. Please see our disclaimer for current positions.
