While no financial terms were disclosed, the deal outlines that the new partner will be hauling ore from the mine once operations have commenced. Following a 27km trip to the FPMI crusher, the ore will be crushed to between 5mm and 10mm.
Régua's mine and processing circuit includes a near horizontal adit mining using contract mining and a combination of open stoping and room and pillar. Once complete, crushed ore will be processing through to tungsten concentrate using the existing La Parrilla concentrator plant, which will be moved to Régua and upgraded later this year.
"As part of the service contract, FPMI will use the waste ore for rehabilitation of its existing quarry providing local environmental benefits," the company said, adding that W Resources will be earmarking €50,000 (US$57,000) to expand haulage access roads.
W chairman Michael Masterman explained that the new contract will give it an opportunity to advance Régua to development with efficient capital deployment.
"Our aim is to bring Régua into commercial production with sensible capital deployment leveraging contract mining, haulage and crushing contracts, thereby keeping the capital costs of development low. The FPMI contract is an important step in achieving this objective."
An updated reserves and resource estimate is currently under way at the mine by Golder Associates. It is expected to be completed by early October.
