Wolf Minerals (ASX:WLF, LON:WLFE) has boosted reserves at its Hemerdon tungsten and tin development in Devon by 34% after a six hole drill program at the mine pit’s edge.
The larger resource had increased the mine’s effective life by three years, said managing director Russell Clark. Currently it has permission for ten years of mining.
Wolf carried out the drilling to test the walls of the proposed pit to see if a steeper slope could be used.
A steeper slope means a deeper pit, which has resulted in the higher ore reserves said Wolf.
Hemerdon is now estimated to contain 35.7Mt (millions of tonnes) at 0.18% WO3 (tungsten) and 0.03% Sn (tin) using a 0.05% tungsten cut-off.
The company added it intends to carry out further work to see if some of the deeper granite mineralisation can also be classified as reserves.
Clark said it was a “very pleasing” result, which effectively meant the mine life has risen by a third assuming a five and a half day working week.
Next steps at Hemerdon, very close by to Plymouth, will be to start up the process plant, with commissioning of some of the installed equipment already underway and first ore scheduled to be crushed in July.
Yesterday, the company received permission to carry out a six month trial for 24/7 working at the process plant, which Clark said would enable the plant to run much more efficiently.
Broker SP Angel added that the new pit will be 65 metres deeper than planned in the original definitive feasibility study with 78% of the new tonnage classified as “proven”.
It was a greater increase than originally expected, with an upgrade of between 15-23% the original target.
Wolf also now has the flexibility to raise the throughput as an alternative to a mine life extension, said the broker.
Shares rose 9% to 21.5p.
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