WIN Metals paid $50,000 for a six-month option on a gravity processing plant from Tungsten Mining. The company says the plant would cut costs and speed up production at the historic Radio Gold project.
Alpha Score of 45 reflects weak overall profile with moderate momentum, poor value, weak quality, weak sentiment.
WIN Metals (ASX: WIN) has secured a six-month option to buy a modular gravity processing plant from Tungsten Mining (ASX: TGN). The plant is intended for the company's Radio Gold Project in Western Australia, a historic mine that produced about 71,000 ounces of gold at an average grade of 38 grams per tonne.
The option gives WIN the right to acquire the complete plant within six months after an initial $50,000 payment. The plant includes a ball mill, scrubber trommel, screens, spirals, jig, and thickener modules. Previous metallurgical test work at Radio showed gravity gold recoveries up to 87%, supporting the choice of a gravity circuit.
Gravity processing is well suited to coarse gold deposits like Radio. It typically requires lower capital and operating costs than a full carbon-in-leach plant. For a project aiming to process 120,000 tonnes per year, a modular gravity plant can be deployed faster than a custom-built facility. The $50,000 option payment is a small upfront cost for a plant that would otherwise require a much larger capital outlay if built new.
WIN has engaged Mining Engineering Services Australia to advance engineering studies and cost estimates. Permitting work has started to recommission the existing tailings dam and processing plant site. The company said securing the processing infrastructure lets it finalise project costings and incorporate the plant into its financial model.
The Radio Gold Project, about 88 kilometres northwest of Southern Cross, operated historically in the early 2000s. The 71,000 ounces at 38 g/t represents a small but high-grade endowment. WIN's plan to process 120,000 tonnes per year would extend the mine life and could produce at a rate of roughly 10,000 ounces annually, depending on grade.
The restart thesis depends on WIN exercising the option by December and completing permitting. A failure to secure financing or a sustained drop in gold prices below the project's breakeven would weaken the case. WIN has not disclosed how it will fund the plant purchase or the restart. The company's market capitalisation is small, and gold price volatility adds uncertainty.
Through December, WIN has the right to exercise the option. The company has not disclosed a target date for a restart decision.
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