Ormonde 'optimistic' on tungsten project

ORMONDE MINING expects to begin producing tungsten at one of its Spanish interests in 2011, shareholders were told yesterday.

Addressing the company’s annual general meeting (agm) in Dublin, Ormonde chairman Mike Donohue said funding should be in place for the Barruecopardo tungsten project this year. Further preparatory work should take place next year and construction would begin in 2011, he said.

Mr Donohue said the search for funding for the mine was “well advanced”, adding that he was “quietly optimistic” of success.

Ormonde chief operating officer Steve Nicol told the agm the Barruecopardo asset in the Salamanca region was “potentially a long-life mining operation”.

He said the project had the benefit of being technically simple so it would be operated at low cost.

It could, he added, produce at least 15 per cent of the world’s tungsten requirement.

Tungsten is used in the manufacture of cutting equipment, in car valves and in mobile phones.

Shareholders also heard Ormonde was close to finalising a $7 million (€4.9 million) investment package with a “major mining company” for the further exploration of its La Zarza metals prospect in Andalusia, Spain.

Shares in Ormonde gained 12 per cent yesterday to close at 6.5 cent.