Vital Metals (ASX:VML) is looking into the economic viability of tripling production at the proposed Watershed project in Queensland Australia. Through the feasibility study, some preliminary findings were made, suggesting that tripling production at Watershed was a feasible option.
As quoted in the report:
The extended feasibility study would examine increasing production from the currently proposed one-million tonnes a year to three-million tonnes a year. Early indications show that the capacity could be achieved for a capital expenditure of some A$150-million.
Mark Strizek, Managing Director of Vital told investors in a statement:
In recent months, there have been a number of very positive developments that will further improve the economics of the project. The overall mining industry slowdown has led to a significantly reduced operating and capital cost structure. Contrary to many other metals, the tungsten price continues to appreciate in US dollar terms, which coupled with the declining Australian dollar, has resulted in significantly higher Australian dollar tungsten prices in recent months.