W Resources (WRES ) said it has successfully completed the construction of a new water dam at the La Parrilla mine in Spain ‘in order to resolve the issue of the high water levels.’ 

The tungsten, tin and gold mining company with assets in Spain and Portugal informed investors that the dewatering of the mine pit is now underway and once water levels are reduced, the team will be in a position to safely regain access to high-grade ore areas. 

The 500,000m3 dam at La Parilla is receiving water from the mine pit at a rate of 2,500m3 per hour, which will enable access to the next level of fresh ore in the next few days.  

To date, the construction of this dam at the Spanish-based site has been ‘hugely successful’ with staff and contractors working tirelessly to complete this stage of the project, it noted. 

The company said the final phase of the project is to provide a permanent solution to the ongoing water issues at La Parrilla. This final phase, which consists of a second dam at the site, is currently at the design stage and is expected to be completed in Q4 2021. 

Commenting on the dam, Michael Masterman, Chairman of W Resources, said "After an arduous process we are delighted to have completed construction of the 500,000m3 dam at La Parrilla enabling us to proceed with the full scale dewatering of the mine pit.” 

Addressing shareholders, Masterman said the new dam reflected “a major milestone” for the group and that it would enable it to lift the constraint on its mining operations, enabling it to accelerate the process of regaining access to and recovery of the higher-grade ore. 

He added, “I would like to personally thank our Engineering Manager, Elías Perez who along with the whole team at La Parrilla, executed this important project on behalf of the Company in such an enthusiastic and professional manner." 

View from Vox 

Looking ahead, the group’s priority is to increase production at La Parrilla as the company moves towards a 24/7 operation in order to increase production towards the stated target of the group's T2 production target, whilst safeguarding our staff and contractors. 

Upon reaching its production targets at La Parrilla, W Resources hopes to become a profitable mining firm with positive cash flow, delivering a turnaround in shareholder value. 

Earlier this month, Masterman highlighted that commodity prices had remained robust with European ammonium paratungstate ("APT") pricing remaining strong at US$270-US$280 / mtu and the tin price continuing to strengthen, reaching $31,000 per tonne. 

Shares in W Resources opened flat at 8.15p this morning following market open.  

Reasons to  WRES

W Resources’ strategy is a European mining company focused on delivering long term production of Tungsten, a key strategic metal with ‘strong market fundamentals.’ 

The company said predicted supply shortages are expected to result in upwards trending prices with market forecasts of between US$445/mtu and US$530/mtu by 2023. 

Tungsten Projects 

W Resources has three tungsten projects: La Parrilla in Spain, Régua and Tarouca in Portugal and the CAA Portalegre gold/copper project in Portugal. 

Its flagship project, La Parrilla, is one of the world’s largest tungsten mines, which commenced production in November 2019 and is funded by BlackRock. The project is a large, low-cost mine which is expected to deliver significant earnings growth in 2020. 

With tungsten demand high and with tight supply, W said it is well positioned to benefit from this demand and higher prices, with offtake agreements already in place on La Parrilla.  

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