Ormonde applies for mining concession for tungsten project

Ormonde Mining (LON:ORM) has applied for a mining concession for its Barruecopardo tungsten mine in Salamanca, western Spain.

It is on course to have Barruecopardo up and running by the end of 2012, initially mining 500,000 tonnes of ore per year after a steady ramp-up.

The project, which has a total resource of 10.9 million tonnes grading 0.45 percent tungsten, is Ormonde s primary focus and it is made all the more important by tungsten s status as a strategic metal in the European Union.

China controls about 77 percent of global tungsten supply, consequently securing new sources of the essential metal is a top strategic priority for Europe. Furthermore the metal s price continues to rise, fuelled by the tight squeeze on supply.

Clearly this all bodes very well for Ormonde s and the timing for the Barruecopardo mine.

"The submission of the application for a Mining Concession is a major milestone in our roadmap to tungsten production at Barruecopardo by late 2012, managing director Kerr Anderson said.

The documentation accompanying the submission outlines the operating and design criteria for the proposed mining operation and we will now liaise closely with both the local administration and competent authorities as the permitting process progresses.

We are extremely pleased with the local support received for the project to-date.

Andersen also updated investors on the groups progress on the ground, where infill drilling is ongoing on the southern part of the Barruecopardo deposit.

Samples have already been taken from the holes and some assay results are expected in the coming weeks.

On a technical level, our infill drilling programme continues, with results from the initial holes expected in the coming weeks".

Ormonde has also dispatched the bulk sample which will be used for confirmatory metallurgical testing to the laboratory.

Once complete, the testwork results will allow Ormonde to begin the definitve processing design work for the mine processing plant.