To continue to meet growing demand for its strategic metal, Malaga
Inc.is pleased to announce today that it
will undertake the construction of a pilot plant to validate the
proof of concept studies for recovering and reprocessing tungsten
from its existing tailings pond. In March 2012 the company's NI
43-101 reported that the pond contains 450,000 tonnes @ 0.14% WO3 of
inferred resources.
Financed by an advance on sales from Malaga's current customer,
Global Tungsten & Powders Corp ("GTP"), construction will begin
immediately with first delivery expected in Q3-2012. Assuming a 50%
recovery rate, Malaga would produce an additional 31,500 metric tonne
units (MTU's) over the next few years from the current tailings pond,
which is the equivalent value of $10M USD in revenues at current
market prices.
"We are pleased to valorize the tungsten content from our current
tailings pond, and look forward to using the cash flow generated from
this project to invest in development of the Pasto Bueno mine," said
Pierre Monet, President and CEO of Malaga Inc. "We are also pleased
to benefit from GTP's on-going support and their position as a
leading player in the tungsten sector."
To help increase the current plant recovery rate, the intent is to
add screens that will capture the very fine particles which the
current production line is unable to process. The project consists of
pumping the tailings from the current pond to the pilot plant;
sorting the material through a series of different screens, and then
processing it through magnets to obtain a final concentrate. It's
expected that the pilot plant will have a capacity of 300 tonnes per
day. Upon success of the recovery project, Malaga will install
additional recovery capacity and add new screens to the current
production line in an effort to continue to improve the recovery rate
as well as reduce future closure costs.