Greatland Tungsten at O'Callaghan's

[CanisLycaon]

Well, this is something relatively new in our portfolio, that, with world events as they are now, is maybe coming to light increasingly, and surely of increasing importance too.

Shaun Day says, "We have Australia's largest, and highest grade, Tungsten deposit"

"Clearly the world wants to diversify away from China exposure, so i think the option value of that Tungsten deposit is now really significant...I think there's some great opportunity with O'Callaghans...I've reached out to the US Government about what they'd like to do"

Times can change things very quickly! A few very interesting, opportune comments.

It'll be interesting to see where this one goes.

Onwards & upwards!

[CanisLycaon]

Just for more information, as per the 'AIM Admission Document dd. 10th September 2024'...

"The O’Callaghans deposit is a skarn hosted polymetallic body sitting within limestone overlying the buried O’Callaghans granite. A mineral resource reported in 2023 by Newmont includes a total Mineral resource of ~54Mt containing 189kt of W (tungsten) at 0.35%, 156kt Cu (copper) at 0.29%, 335kt of Zn (zinc) at 0.63% and 159kt of Pb (lead) are 0.30%. Further information is set out in section 5.3.3 of the Competent Person’s Report. Under the Acquisition Agreement, a 1.5% net smelter royalty will be payable by Greatland Exploration Pty Ltd to Newmont in respect of mineral products extracted from M45/203 (the mining lease on which the O’Callaghans deposit is located)."

[TheWishingWell]

189kt of W (tungsten) ! that's worth $7Billion.. Admittedly we have to hire a man with a spade to dig it up.

I cant find the document you referred to. Can you put a link

[Redirons]

Mmmm I think you may have got a little excited there TheWishingWell. The price of tungsten is currently $340.08 per ton so a kilo ton is times by 1000 = $340,080 times by 189 = $64,275,120.
It’s tens of millions US$’s not quite billions unless I’ve missed something??

[TheWishingWell]

The price you quoted is for a mtu of tungsten.


Metric Ton (MT):
A standard unit of weight equal to 1,000 kilograms (or 2,204.6 pounds).

Metric Ton Unit (MTU):
In the tungsten market, an MTU is defined as 10 kilograms, which is equivalent to 1% of a metric ton.

So I think I'm right???
I'm happy to learn though too.

[Redirons]

Fair enough TWW - I certainly hope you’re right and I’m wrong!!
Not sure how we find out for sure as every definition I’m discovering doesn’t change my calculation. Perhaps a fresh set of eyes will put us right??

[chaseholm]

Yes Whishing well is correct.

GGP's o callaghans is approximately 189,000 tonnes with a grade of 0.35%. At estimated tungsten price of $44 per kilogram, the total value of the tungsten resource is $8 billion. This is excluding any additional credits from other minerals such as copper, zinc and lead that is likely found in such deposits.

A very interesting arm to GGP's strategic options.

[TheWishingWell]

A very interesting arm to GGP's strategic options.

Thanks for the confirmation. Now to work out how much it would cost to hire a man with shovel to get it out!

[Redirons]

Thanks Chaseholm - I am very happy to be outnumbered on this and put right!! VGLA

[Redirons]

Oh dear - the plot thickens as Bamps has just posted this over on the LSE Board : -

“The most Ggp could hope for is to produce a tungsten powder, it’s this powder or concentrate that is being sold through Rotterdam at the moment for $330.

The cost of tungsten is so high due to the costs of getting it from a powder to its final state. This powder is worth around $60m.”

I think we’re back to square one as to the actual value the tungsten at O’Callaghans is worth?

[DaveL]

Hi Grok.
Greatland gold have the O'Callaghans Tungsten project in Australia.. how much is the Tungsten worth in dollars

15 web pages

Hello! Let’s dive into estimating the value of the tungsten in Greatland Gold’s O’Callaghans project in Australia. To do this, we’ll need to piece together available data on the resource size, tungsten grade, current market prices, and some reasonable assumptions, all while keeping in mind that this is a rough estimate due to the complexities of mining economics.
Step 1: Resource Size and Tungsten Content
The O’Callaghans deposit is a polymetallic resource owned by Greatland Gold, located about 10 kilometers from their Telfer mine in Western Australia. According to a mineral resource estimate reported by Newmont in 2023 (prior to Greatland’s acquisition), the deposit contains approximately 54 million tonnes (Mt) of ore with a tungsten grade of 0.35%. This tungsten is primarily in the form of tungsten trioxide (WO₃), which is the standard traded form in the industry.
Tungsten content calculation:
54,000,000 tonnes × 0.0035 (0.35%) = 189,000 tonnes of tungsten (W).

This matches the reported figure of 189 kilotonnes (kt) of contained tungsten, confirming the resource size.

However, tungsten is typically priced as WO₃, and pure tungsten (W) makes up about 79.3% of WO₃ by weight (due to the atomic masses of tungsten and oxygen). So, we need to convert this to WO₃ equivalent:
189,000 tonnes W ÷ 0.793 = 238,335 tonnes of WO₃.

Step 2: Current Tungsten Price
Tungsten prices fluctuate based on global supply and demand, with China dominating over 80% of production. Prices are typically quoted per metric tonne unit (MTU) of WO₃, where 1 MTU = 10 kilograms of WO₃. As of early 2025, let’s use a reasonable market price based on recent trends and available data:
In late 2023, tungsten prices were around $300–$350 per MTU (FOB, adjusted for export markets), driven by rising demand for critical minerals and export restrictions from China.

Given the strategic importance of tungsten (e.g., in aerospace, defense, and electronics) and potential supply diversification efforts, let’s assume a price of $350 per MTU as of March 24, 2025, acknowledging that prices could be higher or lower depending on market conditions.

Price per tonne of WO₃:
1 tonne = 1000 kg = 100 MTU (since 1 MTU = 10 kg).

100 MTU × $350/MTU = $35,000 per tonne of WO₃.

Step 3: Gross Value of Tungsten
Now, multiply the total WO₃ content by the price per tonne:
238,335 tonnes WO₃ × $35,000/tonne = $8,341,725,000.

So, the gross in-situ value of the tungsten at O’Callaghans is approximately $8.34 billion USD, assuming a price of $350/MTU.
Step 4: Reality Check and Caveats
This figure represents the theoretical value of the tungsten if it were all extracted and sold at today’s price, but several factors complicate the real-world worth:
Extraction Costs: O’Callaghans is 350 meters underground, requiring significant capital for development (e.g., underground mining, processing facilities). Mining and processing costs could range from $100–$200/MTU or more, reducing net value.

Recovery Rate: Not all tungsten is recoverable; typical recovery might be 70–90%, lowering the effective output to perhaps 166,000–214,000 tonnes WO₃.

Market Factors: Prices could rise due to demand (tungsten is on Australia’s Critical Minerals List) or fall if supply increases elsewhere.

By-Products: The deposit also contains copper (156 kt), zinc (335 kt), and lead (159 kt), which could add value but require separate processing.

Royalty: Newmont retains a 1.5% net smelter royalty, reducing Greatland’s revenue by that percentage.

If we assume a 50% net value after costs, royalties, and recovery inefficiencies (a rough but conservative estimate), the tungsten’s worth to Greatland might be closer to $4–5 billion USD. Still, this is speculative without detailed feasibility studies, which Greatland has not yet released for O’Callaghans.
Final Answer
The tungsten in the O’Callaghans project is worth approximately $8.34 billion USD in gross terms at a price of $350 per MTU, based on 189,000 tonnes of contained tungsten (238,335 tonnes WO₃). However, after accounting for extraction costs, recovery rates, and other factors, the net value could be more like $4–5 billion USD. This positions O’Callaghans as a significant asset, especially given its status as Australia’s largest and highest-grade tungsten deposit, though its true economic potential depends on future development decisions by Greatland Gold.
What do you think—does this align with your expectations, or would you like me to adjust any assumptions?

[TheWishingWell]

Thank you....let's keep this amongst us.

[Maltster]

Oh dear - the plot thickens as Bamps has just posted this over on the LSE Board : -

“The most Ggp could hope for is to produce a tungsten powder, it’s this powder or concentrate that is being sold through Rotterdam at the moment for $330.

The cost of tungsten is so high due to the costs of getting it from a powder to its final state. This powder is worth around $60m.”

I think we’re back to square one as to the actual value the tungsten at O’Callaghans is worth?

Given that Shaun mentioned that this is the largest (and highest grade) tungsten deposit outside of China, does it not seem a little unlikely to only be worth $60m ?

[CanisLycaon]

189kt of W (tungsten) ! that's worth $7Billion.. Admittedly we have to hire a man with a spade to dig it up.

I cant find the document you referred to. Can you put a link

Hi TWW, just catching up on here. The link to the AIM Admission Document you requested is here (pdf):

https://greatlandgold.com/wp-content/up ... 2024-1.pdf

CL

[willd]

It seems to be a clear error in the SRK analysis where it prices tungsten at AUD 524.57/t (~USD 320/t) as that is more like the MTU price:

I'm certainly no expert, but I wouldn't get too excited even at having $8B potential value of the metal in the ground looking at the small percentages (1-2% industry yardstick method) for how much of that value might actually be realised after the cost of digging it out and processing it, since that only turns the AUD 1.2m in the report into AUD 120m.

[HopefullyGold]

Greatland have won a Western Australian Government grant to drill O’Callaghans today.

https://www.linkedin.com/posts/associat ... ibz6hQZy7I

[Hydrogen]

I cannot imagine that this 'powder' at O'callaghans is only worth $60m.
Not sure what Bamps posted, but that doesn't seem correct to me..
It's a huge deposit. with a lot of other metals.
Metallurgy may be complicated.

As I understand - Newcrest once tried to develop this and allegedly ran into 'issues' with the decline
(according to a comment post on LinkedIn that critical ex Newcrest Geo called Campbell Mackey)

I cant find the original post anymore as Newcrest's old LinkedIn page doesn't exist anymore, but I may have it WhatsApp form 3 years ago somewhere

[RationalAssessor]

Hydro - See the post below from wild.
The 60m appears to come from the SRK document.

But have they used an incorrect price for the Tungsten? Can't belive that $500 would be correct for a tonne of Tungsten!!!!

ATB RA

[zoros]

Cost of pure Tungsten (not APT) is: $43,000/ metric tonne.
Estimated 200,000 tonnes of tungsten @ O Callaghans.
Estimated value of tungsten @ mine: $5.6Bn. Worse case 70% recovery rate.
Z

[Redirons]

Mmm whilst I would like to believe all of the most positive of projections, those of you who know Bamps know that he is not a ramper or deramper but extremely knowledgeable on mining. His opinion remains that GGP would at best extract tungsten powder which then has to be processed into tungsten and hence why its value will be nearer $60m. I’m in the camp of “let’s wait and see” who proves to be right on this, as for me there is enough Gold and Copper to be happy about - anything else is just a bonus. I would prefer a $5.6bn bonus to $60m but it’s too unclear to get excited over at this particular point.