High-grade Ima resource boosts Idaho tungsten revival

An initial resource for American Tungsten’s (TSXV: TUNG; US-OTC: TUNGF) Ima project in northeast Idaho positions it as the state’s highest grade tungsten project where the critical metal is in the primary commodity. Shares rose.

The resource outlines 316,000 indicated tonnes grading 0.55% tungsten trioxide (WO₃) for 1,747 tonnes of WO₃ and 404,000 oz. of silver, the company reported Thursday. Inferred resources total 2.1 million inferred tonnes at 0.55% WO₃, containing 11,933 tonnes of WO₃ and 1.8 million oz. of silver.

The report also covers resources in surface tailings from past mining at the site, which comprise 267,000 indicated tonnes at 0.15% WO₃, for 413 tonnes of WO₃ and 79,000 ounces.

“This mineral resource is a transformational milestone for American Tungsten and validates our view that Ima mine hosts a high-grade tungsten system with meaningful scale and growth potential,” American Tungsten CEO Ali Haji said in a release.

“At a time when the United States and its allies are prioritizing secure domestic sources of critical minerals, Ima’s combination of grade, historical production, existing underground infrastructure and a surface tailings resource creates a differentiated path toward potential near-term production.”

Eyes on Idaho

The estimate comes as Chinese export controls on tungsten and a lack of U.S. mine production intensify efforts to establish domestic supplies of the metal, renewing interest in Idaho’s cluster of past-producing mines and exploration projects.

The dense metal, designated as a critical mineral by the Canadian and U.S. governments, is used in armour-piercing ammunition, cutting tools and wear-resistance industrial alloys.

Company shares gained almost 4% to $1.67 apiece on Thursday morning in Toronto, for a market capitalization of $111 million. The stock has traded in a 12-month range of $1.27 to $2.51.

“The focus remains on advancing Ima through a two track development strategy: Phase I tailings evaluation and potential processing, and Phase II underground drilling, rehabilitation, and restart planning,” Stonegate Capital Partners said in a June note.

“Management continues to position IMA as a potential U.S.-based tungsten supply source, but the near-term story now appears more clearly tied to tailings resource definition, metallurgy, permitting, and continued drill results.”

Tungsten resources

Ima provides one of Idaho’s only current tungsten resources. A 2015 technical report for Idaho Copper’s (NYSE-A: COPR) CuMo project estimated a significantly larger tungsten inventory, but Idaho Copper doesn’t quantify tungsten in its latest resource statement.

The Ima mine was in operation from the early 1900s until 1958, during which about 722,400 tons of ore were mined and made into tungsten and silver-copper concentrates, American Tungsten said.

The Ima resource is based more than 5,180 metres of drilling done since last December, as well as historical data. Surface and underground drilling are ongoing at the site, aimed at converting inferred resources to higher confidence categories and ultimately for advancing a preliminary economic assessment.