Critical minerals developer Tungsten Mining on Monday announced a revised development strategy at its Mt Mulgine project in Western Australia, integrating early-stage gold extraction into its plans to develop one of the country’s most significant tungsten and molybdenum deposits.

The ASX-listed company plans to tap into previously overlooked oxide gold mineralisation located in the overburden of its proposed tungsten starter pit. The near-surface material – historically considered waste – has been identified as a viable early revenue stream, potentially reducing pre-strip costs and the capital threshold required to access the deeper tungsten orebody.

“This updated development strategy makes strong commercial sense,” said Tungsten Mining chairperson Gary Lyons.

“By targeting oxide gold mineralisation located within the overburden of our proposed starter pit, we have an opportunity to generate early cash flow, offset pre-strip costs, and accelerate project development. Crucially, this near-term initiative strengthens our long-term ambition to establish Mt Mulgine as a tTer 1 supplier of tungsten and molybdenum. With global demand for critical minerals surging, particularly for industrial and defence applications, Mt Mulgine is strategically positioned to deliver significant value in the near term while building towards large-scale, long-life production in a Tier-1 jurisdiction.”

Following the acquisition of the Mt Mulgine assets in late 2024, Tungsten Mining conducted a focused evaluation of the oxide gold potential at the Mulgine Trench area, supported by recent increases in gold prices. Internal reviews of historical drilling from Minjar Gold, combined with new data from Tungsten Mining’s own drilling, have confirmed the presence of significant unmined oxide gold mineralisation.

The company has initiated a comprehensive ten-week scoping study to assess the feasibility of a standalone oxide gold startup and its integration into the long-term tungsten development plan.

Tungsten Mining also intends to evaluate the potential for a standalone oxide gold mineral resource estimate, drawing from historical and current drilling data. If successful, the estimate will underpin economic modelling and add technical robustness to the project.

The Mt Mulgine area has a long history of gold exploration and mining, with prior operations at Highland Chief, Bobby McGee, Black Dog, and Camp pits. Between 2014 and 2015, Minjar Gold produced 47 254 oz of gold from more than 880 000 t of ore mined from several prospects, though much of the oxide potential at Mulgine Trench and Allentown remains untapped.

The revised strategy also aligns with conceptual pit optimisations that show significantly higher gold grades in the oxide zone than in the underlying tungsten ore body. Extracting this near-surface gold could provide dual benefits: improving early project economics and facilitating access to the primary tungsten deposit.

Tungsten and molybdenum, both critical for industrial, technology, and defence applications, have gained strategic importance amid growing concerns about supply chain reliability. Mt Mulgine is one of few projects globally with the potential to deliver both metals from a single operation in a low-risk jurisdiction.

The company expects the outcomes of the scoping study to guide development sequencing and integration of the gold and tungsten assets, with the goal of generating early cash flow and reducing execution risk on the path to full-scale production.