THE BOURSE WHISPERER: Desert Mines and Metals (ASX: DSN) has commenced a scoping study at the company’s its Daehwa project in South Korea.
The Daehwa project is located about 100 kilometres southeast of Seoul in Chungbuk Province in Central South Korea.
The project contains two former narrow vein underground molybdenum/tungsten mines, Daehwa and Donsan and is comprised of three Mining Rights with granted tenure, subject to performance conditions, until 2027-2028.
Daehwa project – location map. Source: Company announcement
According to Desert Mines and Metals the aim of the study is to investigate the possible early development of a mine at Daehwa.
The study will look at trial mining and bulk sampling options including detailed costing as well as a developing a strategy for re-accessing historic underground workings.
The company said the study would also consider early mine development opportunities, including drilling and underground sampling requirements in order to generate resources to underpin the development of the project.
Other aspects to fall under the study will investigate potential investment and off-take arrangements with Korean parties as well as infrastructure requirements, including power, water and waste disposal.
Desert Mines and Metals indicated it has collected a 100 kilogram sample consisting of selected higher grade molybdenum mineralisation specimens from an historic mullock stockpile for preliminary metallurgical testwork.
This is to be carried out in Korea by a third party to determine if its processing technology can be used.
“We are very encouraged by the rapid progress we are making in South Korea with our Daehwa project and the commencement of a scoping study will help direct our ongoing exploration and mine development options,” Desert Mines and Metals managing director Chris Rashleigh said in the company’s announcement to the Australian Securities Exchange.
“Desert has already received several expressions of interest with respect to financing and off-take and the company looks forward to progressing these discussions along with the scoping study”
Desert Mines and Metals said it expects the scoping study to be completed by the end of December 2013.