Tungsten Mining pushes Watershed toward September FID after strong PEE

Tungsten Mining (ASX:TGN) is moving its Watershed tungsten project in Queensland toward a final investment decision by September, after a preliminary economic evaluation detailed a pre-tax net present value of A$1.309 billion, an internal rate of return of 198%, and a nine-month payback period from first ore.

The study, released with the company's June-quarter activities report, assumed pre-production capital of A$274 million. The project already holds granted mining leases and a current environmental authority for open-pit development. Secondary approvals, engineering, and procurement work continue in parallel.

Tungsten Mining ended the quarter with A$27.6 million in cash and no debt, giving it funding for the pre-development workstreams without an immediate equity raise. The company expects first production by the end of the first half of 2027.

At the Mt Mulgine project in Western Australia, the company started its largest drilling campaign to date. The program is testing extensions below the existing Mulgine Trench mineral resource and collecting metallurgical and geotechnical data for the ongoing pre-feasibility study. The company sees Mt Mulgine as a long-term growth platform, with the current work focused on expanding the resource base.