|July 26, 2010
North American Tungsten Announces a Decision to Re-Start Production at the Cantung Mine
|The North American Tungsten Corporation Ltd. (the "Company" or "NTC") will re-start production at its 100% owned Cantung tungsten mine in the Northwest Territories, the Company announced today.
The Board has approved this comprehensive re-start plan based upon the recovery in the world tungsten prices, an upgraded operational plan and a financing plan developed to support the re-start of operations at the CanTung mine.
The tungsten market has rebounded from the low of US$185 per metric tonne unit ("MTU") of APT realized during the economic crisis to a current price of US$240 per MTU of APT. Constrained supply, low customer inventory levels, and renewed demand have all contributed to this significant, price increase over the past 8 months.
The Company used the recent suspension of production at Cantung to review, revise and upgrade operational systems in the mine and mill. The Company is confident that this effort will enhance operational efficiency and reduce direct costs.
NTC's CEO Stephen Leahy commented, "During this period while Cantung was under care and maintenance, our Tungsten Team worked diligently to identify operational improvements that would support restart of the mine. I am heartened by our employees' commitment and proud that their efforts have resulted in this new operational plan."
The Company has successfully negotiated off-take agreements with several customers that will guarantee sales for a high proportion of its planned output. Mr. Leahy noted, "Management is pleased with the terms we concluded, including advance payments and increased length for each of the individual agreements. The Company is confident that it has sufficient financing available to meet all its restart obligations."
The process of restarting the CanTung Mine is commencing now. The first full month of production will be October of this year.
Upon commencement of production, North American Tungsten Corporation will once again assume its position as the Western World's largest mine supplier of tungsten concentrates.
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The Company's 100% owned CanTung Mine is the western world's largest Tungsten concentrate producer and its 100% owned MacTung deposit is one of the world's largest known undeveloped high grade tungsten-skarn deposits.
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen M. Leahy, Chairman & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Cautionary Note: The Company relies upon litigation protection for "forward-looking" statements.
Safe Harbour Statement under the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation: Except for the statements of historical fact contained herein, the information presented contains "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," "believes," or variation of such words and phrases that refer to certain actions, events or results to be taken, and other factors which may cause the actual results, performance or achievements of North American Tungsten Corporation Ltd. To be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of reclamation activities, the estimation or realization of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, future prices of commodities, possible variations in ore grade or recovery rates, efficacy and efficiency of milling process, failure of plant, equipments or processes to operate as anticipated, accidents, labour disputes and other risks in the mining industry. Although North American Tungsten Corporation Ltd. has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein and in North American Tungsten Corporation Ltd.'s other filing incorporated by reference.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This press release may use the terms "Measured," "indicated" and "inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulators, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
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