North American Tungsten Corporation Ltd.
TSX VENTURE : NTC

North American Tungsten Corporation Ltd.

September 28, 2010 16:15 ET

North American Tungsten Announces Extended Life of Cantung Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2010) - North American Tungsten Corporation Ltd. ("NATCL", "the Company") (TSX VENTURE:NTC) is pleased to announce the mineral reserve at the Cantung Mine as of September 1, 2010 has increased to 1.693 million tons probable reserves from the July 2009 probable reserve of 1.021 million tons (see news releases dated August 18, 2009 and October 1, 2009). This extends the life of the Cantung Mine to over four years at its current mill capacity.

The Mine

When the Cantung Mine returns to operation during October, 2010 it will once again be a primary producer of tungsten concentrate from underground mining operations.

Currently, the major features and facilities associated with Cantung are as follows:

  • The Cantung deposits, consisting of the Open Pit Crown & Wall Pillars, the E Zone pillars, and the recently defined West Extension 3600 area.
  • The physical plant site including an underground mine, a small open pit, process plant, diesel power plant, workshops, warehouses, administration buildings, a town site and single status accommodation, and an airstrip.
  • Waste rock dumps and a tailings storage facility.

 The updated Mineral Reserves are summarized in Table 1-1.

TABLE 1-1 CANTUNG PROBABLE MINERAL RESERVES
 
Zone Tons Grade (WO3 %) STU'S
West Extension 3600 AREA 553,402 1.47 813,650
E Zone Pillars 541,860 1.00 539,701
Pit Underground 598,192 1.05 627,986
TOTAL Probable Reserves 1,693,454 1.17 1,981,337

 Notes:

  1. Mineral Reserves conform to CIM and NI43-101 requirements.
  2. All Mineral Reserves are classified as Probable.
  3. Mineral Reserves are estimated at a cutoff grade of 0.80% WO3.
  4. A minimum mining width of 15 feet was used.

The E-Zone refers both to the entire underground orebody, and also to the few remaining stopes that do not fit into a subzone category such as Main, South Flats, or West Extension.

The reserve estimate uses a cut-off grade of 0.80% W03 for the life of mine, and is based on operating costs from the operation over a one-year period previous to closure and not including the two months before that closure.

In NATCL's opinion, the key risk to mine profitability lies in tungsten price sustainability and mined grades over the remaining mine life.

The Cantung Mine processes ore at a rate of 1,100 tons per day. Mineral Reserves support a mine life of 4.2 years at that throughput rate.

Processing is carried out by gravity and flotation circuits. Final products include a premium gravity concentrate (G1), containing 65% WO3 and a flotation concentrate containing 47% WO3.

QUALIFIED PERSON
Benjamin Mossman, P. Eng., an Independent Mining Engineer is a qualified person as defined by NI 43-101 and has reviewed and approved the technical disclosure of the reserves contained in the news release.

ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The Company's 100% owned Cantung mine and Mactung development project make it one of the few tungsten producers with a strategic asset in the western world. Mactung is one of the world's largest known undeveloped high grade tungsten-skarn deposits.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephen M. Leahy, Chairman & CEO

Cautionary Note

Safe Harbour Statement under the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation: Except for the statements of historical fact contained herein, the information presented contains "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," "believes," or variation of such words and phrases that refer to certain actions, events or results to be taken, and other factors which may cause the actual results, performance or achievements of North American Tungsten Corporation Ltd. To be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of reclamation activities, the estimation or realization of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, future prices of commodities, possible variations in ore grade or recovery rates, efficacy and efficiency of milling process, failure of plant, equipments or processes to operate as anticipated, accidents, labour disputes and other risks in the mining industry. Although North American Tungsten Corporation Ltd. has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein and in North American Tungsten Corporation Ltd.'s other filing incorporated by reference.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This press release may use the terms "Measured," "indicated" and "inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulators, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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