Tungsten

[Tackler]

N.A. Tungsten chugging along at Cantung

2006-02-08 20:46 ET - News Release

Mr. Stephen Leahy reports

NORTH AMERICAN TUNGSTEN CORPORATION HITTING FULL STRIDE AT CANTUNG

North American Tungsten Corp. Ltd. (NTC) has given a review of recent progress achieved in mining and milling operations at its wholly owned Cantung mine. The company completed its ramp-up phase from its September, 2005, start-up through January, 2006, focusing on enhancing operating efficiencies. During February, 2006, mill throughput of 1,000 tons per day with grades averaging over 1 per cent WO3 has been achieved and is expected to be maintained during the current mining program. Monthly production is currently forecast at 30,000 metric tonne units.

Underground mining operations have been improved through the introduction of long-hole mining (a bulk mining method for pillar recovery) that results in both higher ore tonnage availability and lowering of the impact of the cyclical nature of cut and fill mining. Current underground mine development, through the use of a mine development contractor and corporation crews, is proceeding as planned, and access to seven long-hole pillars should be completed by March, 2006. Routine cut and fill underground mine development will continue throughout the year. Recent equipment additions of a rebuilt two boom electric hydraulic jumbo and a scissor lift unit have also contributed to improved overall operating efficiencies.

Automating a number of components of the milling process has resulted in significant gains in operating efficiencies. New PLC (programmable logic controller) controlled pumps and flow lines have enabled the mill to respond more effectively to variances in ore hardness. This has led to enhanced tungsten recoveries by optimizing tonnage flow rates. A program to replace the Sala screens with Derrick screens commenced in December and is scheduled for completion this summer; this will improve screen efficiency and reduce maintenance costs. Automation has also resulted in a more effective deployment of the corporation's labour force.

NTC has modified its milling circuit to produce a single concentrate with an average grade of 65 per cent WO3, replacing the historical production of two concentrates; gravity and flotation. The elimination of the flotation concentrate production leads to lower shipping costs due to the fact flotation concentrates contains a lower WO3 content. In addition, the resulting production of a single concentrate product has broadened NTC's potential client base.

The 3.3-megawatt Caterpillar 3612 generator was commissioned this month. This unit will reduce servicing costs and fuel consumption, and increase the mine's overall power availability in excess of seven megawatts.

Collectively, these gains in operating efficiencies will expedite the achievement of forecast tungsten concentrate production volumes at Cantung for the 2006 calendar year.

Going forward, further exploration programs are being developed for both Cantung and the corporation's wholly owned Mactung property, located approximately 100 miles north of the Cantung mine. NTC presently intends to initiate feasibility studies on Mactung by the second half of this year.

The overall tungsten market remains extremely buoyant with ammonium paratungstate price currently quoted at $275 (U.S.) to $285 (U.S.) per metric tonne unit.