This article talks about American Tungsten Ltd and its main project, the IMA Mine in Idaho. Ali Haji, the CEO, shares details about the company's plans to bring tungsten production back online in North America. He also explains why tungsten is important today and how the US government is supporting critical minerals.
The Story of American Tungsten
American Tungsten has two main assets, but the big focus is the IMA Mine in Idaho. This mine used to produce tungsten a long time ago, starting in 1881. It was actually the fourth largest tungsten producer in North America back then. Operations stopped in 1982, but now American Tungsten is working to get it going again. They just got the option for the mine in 2024 and are already starting rehabilitation work. The goal is to start production in the next 18 months, making it the fastest tungsten producer to come online in North America.
Why Tungsten Matters
Tungsten is a really important metal, even if most people don't know much about it. It's the second hardest element after diamond and has a super high melting point. This makes it useful for a lot of things:
- Military and Defense: Used in armor, ammunition, and missile bodies.
- Aerospace: Found in airplane turbines.
- Energy: Used in wind power turbines and nuclear power plants.
- Electronics: A small amount goes into microchips and semiconductors.
Right now, China produces about 85% of the world's tungsten. But with China restricting exports, it's becoming really important for countries like the US to produce their own tungsten. This is why bringing mines like IMA back online is a big deal.
The IMA Mine Project: An Update
Ali Haji recently visited the IMA Mine and saw that the D-Level adit, which is like a tunnel, is in good shape. It's above the water table, which is a huge advantage because most other tungsten mines in North America are underwater and would need a lot of pumping and work to get them ready. This means IMA can get back to production much faster.
Here's what's happening at the IMA Mine:
- Rehabilitation: They're starting to fix up the mine portals to make them safe.
- Permitting: Water sampling is underway to help get the necessary permits.
- Resource Assessment: A 43-101 report is coming out soon, which will show the mine's resource. Historically, the mine had about half a million tons at a high grade of 0.63% tungsten. For comparison, some mines in Australia have grades of only 0.11%.
- Exploration: They plan to do more drilling this summer to find more tungsten.
- Bulk Sample: A 100-ton sample will be sent to mills to figure out the best way to process the ore and find potential buyers.
US Government Support for Critical Minerals
The US government is really focused on critical minerals, and tungsten is high on their list. This means there's support for companies like American Tungsten. They're looking to speed up permitting for mines and offer grants and low-interest loans.
American Tungsten has been working with the Defense Industrial Base Consortium and has put together a white paper for the Department of Defense to show what they need to get the mine running. They're also looking into grants from other agencies like the Department of Energy.
The Leadership Team
American Tungsten has a strong team in place:
Key Players
- Technical Advisers: These individuals have worked at almost every tungsten mine in North America, giving them a lot of specific knowledge.
- Dan Nicholas: A board member who used to run the Department of Energy's loan program, he knows a lot about government funding and regulations.
- Jim Whitaker: Another board member, he's the chief operating officer of Capstone Copper and has a lot of experience in large-scale mining operations.
Why Invest in American Tungsten?
American Tungsten stands out for a few reasons:
- Limited Competition: There aren't many tungsten companies out there compared to gold or copper.
- Local Team: Their VP of exploration lives in Idaho, which helps with local operations.
- Existing Mine: The IMA Mine is a past producer with a known resource that's above the water table, making it easier and faster to restart.
- Infrastructure: There are mills within 200 miles of the mine, which is a big plus.
- Fast Path to Production: Because of these advantages, American Tungsten believes it can start producing tungsten quicker than other companies.
What's Next for American Tungsten?
Investors should keep an eye out for these things in the next 6 to 12 months:
- Exploration drilling this summer.
- Release of the 43-101 report and an updated resource statement.
- Results from the bulk sample, which will help determine how to process the ore and find buyers.
- Progress towards production, with a goal of being online within 18 months.
American Tungsten is aiming to produce about 8% of North America's tungsten consumption once the IMA Mine is fully operational. It's going to be a busy time for the company as they work to bring this important mine back to life.
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