W Resources' shares rise after La Parilla resource update

Shares in Spain- and Portugal-focused W Resources improved more than 1% after reporting an increase in the grades and upgrade in resource categorisation of its resource for La Parrilla.

The total combined measured, indicated and inferred resource was now 49 million tonnes (Mt) grading 998 parts per million (ppm) tungsten tri-oxide (WO3) and 110 ppm tin (Sn).

The combined measured and indicated resource amounting to 36 Mt and grading 1007 ppm WO3, which represent an increase of 4% from previous grade of 965 ppm WO3 reported in February 2016 and 115 ppm Sn.

W Resources further said that new thick high-grade zones were delineated in the La Parrilla Fast Track Mine (FTM) south area, and would be incorporated into the mine plans in 2018 and 2019.

Based on preliminary mine plan optimisation, the averaged Run of Mine (ROM) feed grade in 2018 is expected to increase 42% to 1,350 ppm and the 2019 grade was expected to increase 16% to 1,260 ppm.

The higher grades for these mining rates will result in increased cash flow in the early years of mine development.

Chairman Michael Masterman said the increase in grades in the new JORC resource were very positive for the La Parrilla development.

"The delineation of a large high-grade resource area in La Parrilla FTM south is expected to underpin materially stronger performance in the critical start-up years of the La Parrilla mine," said Masterman.

"Once the updated mine plan is completed, we will be able to then report the upgraded financials on the project."

At about 14:52 BST, AIM-traded W Resources' shares were up 1.64% to 0.31p each.