About Tungsten

Following flooding of the tungsten market by China in the 1970s, tungsten prices fell sharply from about US$175 per metric ton unit (MTU) in 1977 to less than US$50 in 1986. Prices have risen strongly since about 2002, due to export restrictions and internal demand in China.  Price is currently about US$250 per MTU, which is equivalent to US$25,000 per tonne.

The major uses of tungsten are as “hardmetals” or tungsten carbide for tool manufacture, and in production of hardened steel.

Finley Basin

UEPL has entered into an option agreement to acquire the Finley Basin tungsten project in Montana, USA. The project consists of 20 granted mineral claims within the Finley Basin (previously called Ho Mountain), an area of historical high-grade silver mining.

UEPL has paid US$10,000 for a three-month option to carry out due diligence including seeking to locate historic drill records. UEPL can acquire 100% ownership of the project by payment of US$165,000 plus a 1% net profit royalty to the current owner.

Finley Basin project covers the Ho Mountain tungsten deposit discovered by Union Carbide in the early 1970’s. Union Carbide drilled ten diamond drill holes at into Ho Mountain and 13 diamond drill holes at Ho Mountain North, as well as exploration holes at two other nearby tungsten occurrences.

Drilling by Union Carbide at Ho Mountain indicated the presence of significant scheelite mineralisation at an average grade of about 0.7% WO3 at a depth of about 330 metres. The mineralisation lies in skarns along the contact between the Mississippian Madison Formation and the underlying granites, although tungsten was observed in tactites of the overlying Amsden Formation. Drilling also intercepted an overlying 70-metre thick breccia which outcrops at surface in places and which contains silver and copper oxides, however Union Carbide did not routinely assay for gold, silver and base metals. Surface samples from within the project area have been assayed with the best sample assaying 18.2 oz/ short ton (604 g/tonne) silver, 3.4% copper, 0.79% lead and 2.86% zinc.

Mineralogical studies carried out for Union Carbide in 1978 indicated that the tungsten mineralogy should not pose a problem to beneficiation. Tests indicated that the effective scheelite liberation from the heavy gangue minerals is at least 97% complete at 90 microns. Scheelite was the only tungsten mineral observed.

Due to low prices, Union Carbide stopped field work in the late 1970s and the mineral claims later lapsed until pegged by Mr McKamy.

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