Watershed Tungsten Project

Watershed - A World Class Tungsten Project

Watershed is located in Far North Queensland, Australia. It is 35 km northwest of Mount Carbine, 115 kilometres northwest of Cairns in hilly open woodlands.  The project is close to the Mulligan Highway, connecting the project to the ports in Cairns and Townsville. A 132kV power line runs parallel to the Highway, giving the project access to cheap grid power.

Location of the Watershed Project.

Based on solid exploration

The Watershed tungsten deposit was discovered and explored by Utah Development Company Limited (“Utah”) in the early 1980’s with limited further work conducted by Peko-Wallsend Operations Limited – Geopeko Division (“Geopeko”) in the mid-1980’s. Vital acquired the project in 2005 and has been investigating the deposit since that time.

The deposit has been defined by more than 326 drill holes for over 54km of predominately diamond drilling. Mineralization has been encountered over a strike length of approximately 1500m and down dip to 450m. The deposit is open at depth and along strike.

World class resource

The Watershed Deposit ranks among the 10 largest unexploited non-Chinese tungsten deposits worldwide. This JORC (2004) compliant resource model has been classified using JORC Code and Guidelines and Measured, Indicated and Inferred Resources total 49.2 million tonnes of ore at 0.14% WO3 for 70,400 tonnes WO(7.04 million metric tonnes units – mtus) at a 0.05% WO3 cut-off.

Simple mineralogy

Scheelite in a molybdenum-free variety is the only important tungsten mineral occurring at Watershed.  It produces a high grade tungsten concentrate with low contaminants using simple and proven processing technologies, based on solid test work carried out by Vital Metals.

Fully permitted

The Watershed projects holds all the required permits and agreements, allowing immediate start of construction: Mining Leases – ML, Environmental Authority – EA, Native Title Agreement – ILUA, Agreements with pastoral landholders.

Completed positive DFS

A Definitive Feasibility Study (DFS) was completed by Vital with very positive outcome in 2014. A 2.5Mt ore per year mining and processing operation is supported by strong economics and a mineral reserve of 21.3Mt of ore grading 0.15% WO3 (31,400 tonnes of contained WO3) over a mine life of 10 years.

Straight forward mining

Mining will be carried out using cheap low-risk open pit methods.

Excellent exploration opportunities

The Watershed resource is open to depth as well as along strike with high grade drill intercepts known below the current open pit design as well as in close proximity to south of the deposit. This provides great opportunities to extend the life of the Watershed project through future underground or satellite open pit operations.