Thursday, May 28, 2009

Positive project economics for Hazelwood Resources' Big Hill Deposit at current tungsten prices

Thursday, May 28, 2009

Hazelwood Resources (ASX: HAZ) has indicated that early project parameters and forecast profit margins are robust for its 100% owned Big Hill Tungsten Deposit in Western Australia as it advances through a pre-feasibility study for the production tungsten concentrate. The PFS is expected to be completed around September 2009.

If mined. the deposit could produce 2-3% of the world's primary mined tungsten. Hazelwood has conducted focused drilling and metallurgical testwork programs at the Big Hill Tungsten Deposit.

A preliminary pit optimisation study shows the project can provide strong operating margins, even at today's relatively low tungsten price, with a five year mine life, with low strip ratios and demonstrated favourable metallurgy.

Low cash operating costs are indicated.  Hazelwood recently announced a high quality Mineral Resource for the Big Hill Tungsten Deposit which is based on recent intensive drilling and 70% of the resource is within 100 metres of the surface. Only one third of the strike extent of the deposit has been resource
drilled. A brief drilling program will commence shortly to upgrade the Mineral Resource, which in turn is likely to increase the operational life to around 7 years.

The pre-feasibility study (PFS) is progressing according to schedule, following a recent successful placement to raise $3 million. 

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