tungsten producer in feb world class potential, page-16

Treefeed,

Thank you for your post.

I think a lot of the funding questions come down to who CNQ signs the off take agreement with and the upgraded JORC revised Scoping study due end of the 1st Qtr 2012.

As per CNQs Feb 2011 announcement.
Low Grade stockpiles. Production 100t Mth EBITDA $15Mil Yr Capex $20Mil Mine Life 5 Years Start up 2012.

As tungsten has become a strategic resource I feel countries will be ensuring large multinational (Not Chinese) lock in long term supply.

From Memory Dr Andy White (Director) who was involved with Mt Carbine prior to the Chinese flooding the tungsten market triggered shut down was confident Mt Carbine is a world class reserve.

As per the 7 May 2010 CNQ has secured the tenement surrounding Mt Carbine so I see the following events. (Numerous historic Tungsten & Tin Workings)

Tailing production Feb 2012. (10 May 2011 announcement Modelling of forecast cashflow generated by retreating the tailings indicate that the project has robust economics.)
Off take agreement Jan 2012. Multinational deep pockets Please.
Drilling In Progress. Positive results to date.
JORC upgrade Easter 2012.
Independent Scoping study Easter 2012. (Note Upgrade of precious study 15 Oct 2009)
With the upgraded JORC the CAPEX justification is confirmed.
Evaluation of the $20Mil funding. Directors are committed to limited dilution hence an Off taker with deep pockets could be a key.
With total EBITDA of 20Mil ($5Mil Tailings & $15Mil Stockpiles) we could see debt funding no dilution.
Confirm Plant design.
Production to start Late 2012.
Then start on Reopening the Open cut. Hard Rock. Production 200t Mth EBITDA $30Mil Yr Capex $5Mil Mine Life 10 Years Start up TBA.
Mt Carbine to become the tungsten processing hub for north Qld with sealed roads reopening an existing mine therefore 90% of approvals.

Bottom Draw for 2 years. (Takeover)

Sit back enjoy the ride.

Please DYOR.