“Some people argue that government investment in public companies starts to resemble the state-owned model we are trying to avoid in China. Still, the reality is that if supply and production is to return to North America, government support is necessary.”
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How much of the US tungsten market does American Tungsten expect to meet with production from the IMA mine?
American Tungsten’s (previously Demesne Resources) goal is to restart the historic IMA mine in Idaho. IMA stopped producing tungsten in 1959, but the bulk of the modern drilling work was done in 2010. The mine has approximately 15 miles of underground workings and is located on private, patented land, which is a significant advantage when it comes to permitting. What makes IMA unusual is that, unlike many underground mines in the US or even Canada, the entire adit system sits above the water table. That means water is not flowing through the workings, we are not required to pump water out or plan for treatment.
We aim to finalize our economic feasibility study and mine plan within the next 6 months, supporting an aggressive, accelerated production timeline. Our capital expenditure is approximately US$25 million, which includes installation of a 500-t/d mill on site. This will enable us to produce an 80% tungsten concentrate and an 86% silver-molybdenum concentrate. With this output, American Tungsten anticipates meeting approximately 8% of US tungsten demand.
Initial revenue from product sales is expected before the end of 2026, with full commercial production projected for Q1 2027.
What progress have you made on rehabilitation, underground access and drilling?
Rehabilitation efforts are underway, with reopening of the original adits. We have rehabilitated approximately 1,000 feet on the D Level and 800 feet on the Zero Level. New timber portal entryways have been installed, and essential utilities – water, air, and fuel – are now operational between these levels. Approximately 100 feet of crosscuts have been completed, allowing us to begin drilling. Our objective is to complete close to 15,000 feet of drilling by the end of 2025, with the dual goals of confirming historical high-confidence results, and maximizing resource growth to extend mine life.
What is your analysis of the tungsten market?
Tungsten has been listed as a critical mineral since 1979. North America used to be one of the world’s largest tungsten producers, but around 2015, as with many other critical minerals, production was offshored. China ultimately dominated the entire market, encompassing both mining and processing. In 2015, China flooded the market with cheap tungsten, putting companies out of business, and essentially, North America ceased production. Today, around 85% of tungsten is processed in China. What sets IMA mine apart is the grade. We have the second-highest tungsten grade in North America, at 0.63%, along with approximately 2 oz/t of silver and 0.15% molybdenum. Those silver and moly credits together add roughly US$140-US$150 in value on top of the tungsten. Due to the high-grade, we do not need to move large amounts of rock to achieve strong outputs.
Pricing is also a big part of this evolving story. When mines went into care and maintenance, tungsten was around US$180/t. By the end of 2024, the price had reached US$280/t. Since China started restricting exports, the price jumped again, and today, tungsten is around US$690/t. Tungsten demand, on the other hand, is strong because it is used almost everywhere. With NATO countries raising defense spending by up to 5%, this creates a bullish scenario. We are witnessing a small, niche market that is growing rapidly, but the supply is not keeping up. Even the scrap market is tight.
How have the federal and investors’ attitudes toward mining and critical minerals changed in the last months?
American Tungsten just received an EXIM Letter of Interest for US$25.5 million to help fund our CapEx and to carry us into production. On the federal side, I believe the current administration has done a good job of deploying capital through agencies such as DOD, DOE, DLA, DARPA, and DPA Title III. Some people argue that government investment in public companies starts to resemble the state-owned model we are trying to avoid in China. Still, the reality is that if supply and production is to return to North America, government support is necessary. You need price floors and backing so that if China or anyone tries to flood the market again, we do not lose our entire industry.
How much of the US tungsten market does American Tungsten expect to meet with production from the IMA mine?
American Tungsten’s (previously Demesne Resources) goal is to restart the historic IMA mine in Idaho. IMA stopped producing tungsten in 1959, but the bulk of the modern drilling work was done in 2010. The mine has approximately 15 miles of underground workings and is located on private, patented land, which is a significant advantage when it comes to permitting. What makes IMA unusual is that, unlike many underground mines in the US or even Canada, the entire adit system sits above the water table. That means water is not flowing through the workings, we are not required to pump water out or plan for treatment.
We aim to finalize our economic feasibility study and mine plan within the next 6 months, supporting an aggressive, accelerated production timeline. Our capital expenditure is approximately US$25 million, which includes installation of a 500-t/d mill on site. This will enable us to produce an 80% tungsten concentrate and an 86% silver-molybdenum concentrate. With this output, American Tungsten anticipates meeting approximately 8% of US tungsten demand.
Initial revenue from product sales is expected before the end of 2026, with full commercial production projected for Q1 2027.
What progress have you made on rehabilitation, underground access and drilling?
Rehabilitation efforts are underway, with reopening of the original adits. We have rehabilitated approximately 1,000 feet on the D Level and 800 feet on the Zero Level. New timber portal entryways have been installed, and essential utilities – water, air, and fuel – are now operational between these levels. Approximately 100 feet of crosscuts have been completed, allowing us to begin drilling. Our objective is to complete close to 15,000 feet of drilling by the end of 2025, with the dual goals of confirming historical high-confidence results, and maximizing resource growth to extend mine life.
What is your analysis of the tungsten market?
Tungsten has been listed as a critical mineral since 1979. North America used to be one of the world’s largest tungsten producers, but around 2015, as with many other critical minerals, production was offshored. China ultimately dominated the entire market, encompassing both mining and processing. In 2015, China flooded the market with cheap tungsten, putting companies out of business, and essentially, North America ceased production. Today, around 85% of tungsten is processed in China. What sets IMA mine apart is the grade. We have the second-highest tungsten grade in North America, at 0.63%, along with approximately 2 oz/t of silver and 0.15% molybdenum. Those silver and moly credits together add roughly US$140-US$150 in value on top of the tungsten. Due to the high-grade, we do not need to move large amounts of rock to achieve strong outputs.
Pricing is also a big part of this evolving story. When mines went into care and maintenance, tungsten was around US$180/t. By the end of 2024, the price had reached US$280/t. Since China started restricting exports, the price jumped again, and today, tungsten is around US$690/t. Tungsten demand, on the other hand, is strong because it is used almost everywhere. With NATO countries raising defense spending by up to 5%, this creates a bullish scenario. We are witnessing a small, niche market that is growing rapidly, but the supply is not keeping up. Even the scrap market is tight.
How have the federal and investors’ attitudes toward mining and critical minerals changed in the last months?
American Tungsten just received an EXIM Letter of Interest for US$25.5 million to help fund our CapEx and to carry us into production. On the federal side, I believe the current administration has done a good job of deploying capital through agencies such as DOD, DOE, DLA, DARPA, and DPA Title III. Some people argue that government investment in public companies starts to resemble the state-owned model we are trying to avoid in China. Still, the reality is that if supply and production is to return to North America, government support is necessary. You need price floors and backing so that if China or anyone tries to flood the market again, we do not lose our entire industry.
