Tungsten Mining Drills Watershed Deposit, Eyes 2027 Production

Chair Gary Lyons said the campaign was the next step following the strong PEE outcomes. RC drilling, he said, will concentrate on areas of known high-grade mineralisation targeted for initial mining, designed to provide greater confidence for resource modelling and mine planning. Diamond work will provide metallurgical samples and geotechnical information to refine process design, pit design, and detailed engineering.

"Together, these programs will further enhance the technical definition of Watershed and help reduce project development risk as we advance," Lyons said.

Initial drilling results are expected from October this year.

Watershed sits in north Queensland's tungsten province. The deposit is one of the few advanced-stage tungsten projects in Australia, a country that hosts no operating tungsten mines despite holding significant resources. China controls roughly 80% of global tungsten supply, a concentration that has pushed Western buyers to seek alternative sources.

The PEE assumed a processing rate of 3.5 million tonnes per year over a 17-year mine life. At spot tungsten prices near $30,000 per tonne, the project generates a 35% internal rate of return, the company said. The economics depend on tungsten oxide prices staying above $24,000 per tonne, a level the market has held for the past 18 months.

Tungsten Mining has not yet locked in offtake agreements for Watershed production. The company said it expects to begin discussions with potential customers once the resource upgrade is complete. A bankable feasibility study would follow the current drilling program, with a final investment decision targeted for late 2026.