American Tungsten Moves Closer to Production Following Major IMA Resource Milestone

[music] >> Today I have the pleasure of speaking with Ali from American Tungsten and we have more good news. Ali, you have just put out a high-grade tungsten mineral resource. Let's start at the top. >> Tracy, good to be here. You know, when we started the company, the vision was to ensure that we have a 7 to 10-year life of mine. The historical resource was roughly 300,000 tons. This first lease now brings it up to about 2.5, which is roughly 8 to 8 and 1/2 X the historical resource. Given the cutoff grade that we're looking at here in terms of our resource at 0.2, that is significantly higher than the vast majority of North American tungsten projects, particularly in the United States. I would say that our our head grade at 0.55 would be deemed the highest new resource announced in the United States. This cements our position as a company that has a minimum 7 to 10-year life of mine. We've also got silver and molly credits, which ultimately will offset our OPEX. >> How does this impact your timeline to be first to market for tungsten concentrate this year? >> So, the tungsten concentrate as we've discussed with our viewers and listeners and investors comes from our tailings, which is about 300,000 tons at 0.15. The cutoff of our peers from their mining assets in North America, particularly the United States, is 0.07. Our tailings are homogeneous in nature, so we've got about 98% that would be fulfilled in terms of the resource at 0.15. The tailings are currently undergoing met testing. We expect those results by the end of September and the first concentrate sale is very much envisioned before Christmas this year. >> And and how does the grade change this story from your MRE results? >> Well, grade is king. You look at gold, you look at silver, precious, or uranium. Tungsten is much the same. And given the mining method that we're employing, cut and fill, there is very little waste that would come through the system. So, being very high grade, low capex at 80 million, anticipated at the top end, uh producing about 500 tons per day allows us to put out 170,000 MTUs per annum at a very low opex. Uh so so grade is absolute king. 0.55 is roughly 2 and 1/2 times higher than the average grade of any other tungsten project in the United States today. >> I don't I don't want to put you on the spot, but can you give us a bit of the highlights for the peer comparison for those of you out there following the tungsten market and what this actually means? >> Well, you you've got to look at capex. You know, in terms of IRR and capex, that's where you start to look at true comparisons. And if you look at the organizations in the United States that are trading today, uh Guardian comes to mind. Allis done a fantastic job. He's got a significant asset with the Pilot Mountain. Uh his cutoff is about 0.07. Ours is 0.2. Our head grade again 0.55. His capex anticipated to be roughly uh in excess of about 300 million. We're looking at 80 million capex to bring this thing online on private patented land above the water table, fully supported by the government agencies that are in Idaho and federally as well. Uh you start to see a EV to NPV ratio here once our PA is published in October uh that would be rather compelling. >> And the resource growth opportunity you keep pounding into my memory, anyways, the 17,000 feet drilling program and what that actually means. Can you share that with our audience, please? >> Of course. You know, we announced 35,000 feet in terms of our drilling program at Ilima. This resource that we're now putting out at 2.5 million ton plus includes only 17,000 of those 35,000 feet planned. We're sitting on roughly 8,000 feet of core that we need to cut, assay, and ultimately report upon. And we will conclude in and around 35 to 40,000 feet in time for our PEA. So, our PEA is expected to include the additional drill data. And the intent there, of course, is uh we move more of that tonnage from indicated to rather from inferred to indicated, but also ensure that we have the capacity to grow the potential of the Ilima mine. >> Speaking of potential to grow, your ability to raise capital is literally been exceedingly impressive for everybody watching American Tungsten, but you also have always prioritized capital efficiency. And I would love for those of you following American Tungsten to learn a little bit more about the way that you proceed with your capital. Can you tell us more about that? >> Yeah, so the initial raise in July last year was at 50 cents. In October, we raised at $2.58, and then in March this year, a block deal led by Stifel and Canaccord, we raised at $2.80. The capital has been deployed very I will say in terms of actually advancing what we're doing on the ground. And with respect to the tailings coming online to generate first revenue, as soon as we have revenue generated from our tailings, we'll be sitting at about 10 million US in cash. So, we have no immediate requirement to raise capital. We also have 25.5 million that will convert from the Exim Bank in the United States on the basis of our PEA. And so, uh you know, my view is de-risk, de-risk further, show it works, Raise capital when you have catalysts that are transformational such as this very important resource update. >> You have spoken a lot about how you de-risk the American Tungsten deal, and you talk about using production as a competitive element. Can you share some more information on that? >> Yes, so you know, we came across the tailings 300,000 tons at 0.15, which is higher than the cutoff grade for the majority of mines in North America, but also 2x higher than any other tailing project being processed around the world. So, at 0.15 with 98% continuity and being homogeneous in in nature, it's shovel ready, allowing us to bring production online here quite quickly. And in terms of the revenue expected to be generated from our tailings, we're looking at the low end, roughly 45 million US over 2 years. At the high end, about 75 million US over 2 years. And the opex, as you can imagine being shovel ready, you're looking at, you know, a dozer into a haul truck and off to the mill. So, quite low. The margins are very, very impressive. That then de-risks the capex requirement on the Ilima main mill, which is anticipated to be commissioned next year. So, the intent for us is dilution is not a thing that we're looking to bring forward to our shareholders. We have a very healthy balance sheet. And with the imminent revenue expected from our tailings, we should be able to offset a good chunk of the capex for our main mill. >> So, one of the most exciting elements moving forward for everybody following American Tungsten is of course your PEA. How are you doing towards achieving that timeline? >> So, we began the internal scoping study late last year. So, essentially the vast majority of the PEA has been concluded, I should say. There are a few chapters that need to be completed, as always. We are anticipating the release of the PAA in October this year. Given the fact that we've done a lot of internal work already, and as I mentioned earlier in the interview, that PAA will include as many of those additional feeds that we have yet core and assay. So, the intent is release that in October, show the market the economics relative to our peers, and uh our belief, given our grade, the fact that gravity is going to be the in our favor doing the vast majority of earth moving, bringing it down from cut and fill, our OPEX should be very, very competitive. So, PAA is on track, and we're excited for October. >> Considering the price of tungsten and the need by the US Department of War, for instance, for tungsten, will you be speaking at any events down in the US in the upcoming month or two that you can comment on? >> Great question. So, we have the congressional delegation that's visiting site with myself on Monday, a few of the very senior folks from the state of Idaho, and then I will be at the DIBC or DIBX conference in Pennsylvania at the tail end of next week. And in October, I have a speaking engagement at the Critical Minerals Expo in Atlanta. So, very keen to get our story out there, and of course, for our listeners, viewers, and investors, we've been speaking about our uplist strategy on the Nasdaq, and that is continuing. >> Well, we look forward to seeing you down in Atlanta, and of course, for everybody interested in learning more about American Tungsten and Tungsten, please go to the following website. Thank you, Ollie. >> Thank you.