Second tungsten project in Queensland / Purchase of the remaining 15% of Wolfram Camp Mine
Heidelberg. Deutsche Rohstoff AG (DRAG) has taken over a second tungsten project in North Queensland, Australia. The Bamford Hill tungsten-molybdenum deposit is located 25 km to the south of DRAG’s Wolfram Camp Mine. Bamford Hill is geologically similar to Wolfram Camp and was a significant tungsten production centre in the early 20th century with extensive historical mining activity.
The Bamford Hill deposit extends over a 2km long contact zone and has large potential for additional tungsten-molybdenum resources. DRAG intends to systematically evaluate the known mineralised zone and 300 km2 of surrounding granted exploration tenements. The planned 2012 exploration program will focus on preliminary resource definition, including the utilisation of existing underground development and drilling information.
The acquisition was effected by purchasing 100% of the shares of Tropical Metals Pty Ltd. Tropical Metals holds 100% of the Bamford Hill deposit and 15% of the Wolfram Camp Mine project. Therefore, DRAG now has control over 100% of Wolfram Camp and Bamford Hill. The purchase price for Tropical Metals amounted to AUD 1 million, which was paid half in cash. The other half of the purchase price the owner receives on 1 January 2012 in shares of Deutsche Rohstoff AG. Half of these shares are escrowed until 30 June 2012.
Titus Gebel, CEO of DRAG pointed out: “This acquisition gives us significant upside potential for our future tungsten production and secures full freedom of action in regard to our Wolfram Camp Mine. The North Queensland region was once the world’s largest tungsten production centre and our intention is to re-establish the region as a globally important producer of tungsten.”
The market for tungsten is characterized by a sharp rise in prices in recent months. Experts expect consistently high prices over the next few years. Tungsten is one of the metals, which is categorized as strategically important by the German Federal Government and the EU Commission. Nearly 80% of the annual global production of about 61,000 tons (2010, pure tungsten metal content) comes from China. There are export quotas from China and a prohibition for foreign companies to explore or produce tungsten in China. Because of its hardness and the extremely high melting point of 3.422 degrees Celsius, tungsten is processed in the hardening of tools, the manufacturing of machine tools, as an alloying metal in the steel industry, for incandescent lamps, in the catalyst preparation as well as numerous other industrial applications.
Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on gold, oil & gas and so called high tech metals such as tin, tungsten, and rare earth metals. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. A first production started in Georgetown/Australia in January 2011. For more information please visit www.rohstoff.de.
Heidelberg, 28 November 2011
Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24, 69117 Heidelberg
Tel. (06221) 87 100-0
Fax (06221) 87 100-22
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Friedrichstraße 2, 76530 Baden-Baden
Tel. (07221) 97372 11
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