Morgans research flash.Let's hope with this updated BFS. Morgans...

Morgans research flash.

Let's hope with this updated BFS. Morgans can start formal coverage on the stock.

	EQ Resources Ltd
	EQ Resources (EQR) has announced an updated Bankable Feasibility Study (BFS) for the Mt Carbine Tungsten Expansion Project. The total open pit Ore Reserves have increased by 29%, along with a 15% rise in tungsten concentrate output over the expanded 14-year production schedule. The processing plant continues to perform well and is achieving the target recoveries set out in the Phase 1 scope as per the initial BFS. Importantly, the updated BFS outlines a faster payback period of 1.5 years and a significant increase to both Project NPV and IRR. The team will also be undertaking further resource drilling on the projected Western Extension of the Mt Carbine orebody and targeting an upgrade in near-pit mine Reserves. EQ Resources is Australia’s only primary producer of tungsten with an established mine-to-ship logistics chain and binding off-take agreement in place with global commodity trader CRONIMET. Key updated BFS highlights include Figure 1: Key BFS economics prepared by lead study manager JukesTodd Pty Ltd. include: Source: EQR Asx announcement 9/11/2022 Figure 2: Mt Carbine Upgraded Crushing and Screening Area – Completed in Phase 1 Source: EQR Asx announcement 9/11/2022
	Our View: Today’s updated BFS for the Mt Carbine expansion project has enhanced the economics substantially and underlines a robust, long-life tungsten operation, with further potential to expand both Reserves and ore throughput. The BFS focusses on two separate phases being the completed Phase one works and the Phase 2 activities which included pit dewatering and upgrades to the crushing, screening, and processing plant to reduce the operating costs and increase the tungsten recovery. The company plans to submit the final EA Amendment this month to allow for the recommencement of mining from the Andy White open pit set for Q3 FY23. We look forward to the commencement of the upcoming drilling program around the Western Extension and further construction updates as Mt Carbine ramps up and begins first production from the Open Pit in Q3 FY23.