NEW YORK Northcliff Resources Ltd. said its Sisson project in Canada "could become the largest tungsten producer outside China."
After completing a feasibility study for the New Brunswick project, the Vancouver, British Columbia-based company estimated that Sisson will produce an annual average of 557,000 metric ton units of tungsten contained in ammonium paratungstate (APT) and 4.1 million pounds of molybdenum contained in concentrates, according to the studys mine plan. The mine is forecast to have a lifespan of 27 years.
Northcliff also will construct and operate an APT plant to process the tungsten concentrate produced at Sisson, "the first of its kind in Canada."
The company said that the project will see Northcliff "become one of North Americas major tungsten producers, greatly increasing supply for the large North American, Asian and European markets where demand is forecast to outstrip supply."
"We have significantly de-risked the project and now have one of the largest tungsten reserves outside China," Northcliff president and chief executive officer Chris Zahovskis said in a statement. "We are confident that Sisson is on track to earn the necessary environmental and construction permits from federal and provincial regulators in 2014, and Northcliff will be pursuing partnerships ... to achieve the financing necessary to initiate project construction in 2014 and commissioning by 2016."
Initial capital expenditures for the project are estimated at Canadian $579 million ($577.9 million).