The new resource estimate has increased the scale of near-surface mineralisation at the Quarry prospect by 103% to 10.61 million tonnes grading 0.16% tungsten and 94 parts per million tin for 16,311t of contained tungsten and 974t of tin - increases of 57% and 38% respectively.

 

There is also an unchanged 2221t of tungsten and 1629t of tin associated with the nearby Mina Carmen underground mine.

 

Rafaella considers the shallow deposit will be amenable to low-cost open pit mining, and is advancing mine planning and feasibility studies.

 

Managing director Steven Turner said the result was an exceptional outcome, and that the company was well on track for completion of the feasibility study, which is due this quarter.

 

Once the studies are complete it will resume drilling, both at the main deposit, which is open strike and at depth, and at nearby prospects with the aim of growing resources and expanding the scale of the project. 

 

The Santa Comba concession covers some 36sq.km around the Mina Carmen and Santa Maria underground mines, which were worked last century, but deemed uneconomic in the 1980s. 

 

In more recent times, the shallow potential has been recognised. 

 

Rafaella raised A$2.8 million to pursue the project in May 2019, saying the fundamentals for tungsten were increasingly positive as China continued to reduce supplies to global markets.

 

Santa Comba has considerable infrastructure, a deepwater port nearby, and Rafaella has an offtake agreement with Germany's HC Stark. The German government has committed to provide €11 million of debt financing. 

 

Rafaella hopes to produce get the mine into production as early as 2021. 

 

Earlier this year it sold its legacy gold licence at Sandstone, Western Australia, but retains its copper-cobalt interests in Canada.

 

Shares in the junior closed at A7.5c yesterday, valuing it at $5.4 million.