Vital, currently capitalised at less than $10 million, is optimising a 2014-completed definitive feasibility study, with Watershed featuring granted environmental and mining approvals.
Capex has previously been put at $100 million.
Tungsten has a current spot price of US$310 per metric tonne unit, with Watershed’s breakeven price being $210/mtu and the commodity’s price being up 50% this year on increased demand and declining supply.
Vital claimed the increased tungsten price had spurred “significantly increased investor and offtake interest”, with “discussions ongoing with financiers and potential offtake partners”.
Vital is also exploring for gold (and more latterly zinc too), in Burkina Faso.
The junior started the current quarter with A$2.6 million cash.
Shares in Vital were up 14% to 0.8c in morning trade, capitalising the company at $8.45 million.