Western Star Resources has purchased the Eagle Point tungsten mine in southwest New Mexico.
Following the deal, the company plans to launch an exploration program, beginning with a drone survey to identify potential drill targets. It will also update old maps and use ultraviolet (UV) lights to rapidly identify scheelite. Western Star said the data from the work will be used to prioritize targets and advance drill permitting.
"Eagle Point is the kind of asset you build a company around. It brings together everything we look for in one place — high-grade tungsten, a documented production history, eight separate skarn bodies exposed at surface, and a tier-one U.S. jurisdiction — yet it has never once been touched by modern exploration," said Blake Morgan, the CEO and president of Western Star.
Western Star said that previous U.S. government examinations estimated between 140,000 and 180,000 tonnes of scheelite-bearing material from surface trenching and outcrop sampling. The company added the acquisition strengthens its U.S. tungsten platform at a time when China controls about 85% of global supply.
Western Star is acquiring 100% interest in the project, comprising 24 lode mining claims, for a $150,000 cash payment and the issuance of 4 million shares to vendors. The company can buy back 1% of that royalty for $1 million. The deal is subject to customary conditions and regulatory approvals.
Comments