Tungsten price surge overhauls economics of Northcliff's Sisson Project

A dramatic rally in tungsten prices has fundamentally reshaped the financial outlook for Northcliff Resources' Sisson tungsten-molybdenum project in New Brunswick. According to a newly released feasibility study, the project's after-tax net present value now exceeds four times its estimated construction cost-a sharp contrast to the 2013 study, which placed the value at less than the initial capital outlay.

Located roughly 100 kilometres by road northwest of Fredericton, Sisson was fast-tracked in November to Canada's Major Projects Office, as Ottawa moves to rebuild domestic tungsten supply. At full production, the mine could account for about a quarter of current tungsten output from outside China, which dominates global supply.

The proposed 27-year open-pit operation would process 30,000 tonnes of ore per day, yielding an average of 598,000 metric tonne units (mtu) of tungsten trioxide annually, along with 4.2 million pounds of molybdenum. During the first five years, higher-grade ore would boost tungsten trioxide production to an average of 767,000 mtu per year.

One mtu equals 10 kilograms of tungsten trioxide. Sisson's average annual output thus translates to 5,980 tonnes of tungsten trioxide, containing roughly 4,740 tonnes of tungsten metal. In the initial five-year period, the planned 767,000 mtu-equivalent to about 6,080 tonnes of contained tungsten-would represent 34% of current mine production outside China.

Canada has not produced any tungsten since its last operating mine closed in 2015, according to the Major Projects Office. Tungsten's exceptional hardness and heat resistance make it vital for cutting tools, steel alloys, aerospace components, military munitions, and protective equipment.

The project's proven reserves stand at 85.6 million tonnes grading 0.079% tungsten trioxide and 0.025% molybdenum, containing 6.8 million mtu of tungsten trioxide and 47.8 million pounds of molybdenum. Probable reserves add 191.2 million tonnes grading 0.073% tungsten trioxide and 0.021% molybdenum, holding 13.9 million mtu and 90.6 million pounds, respectively.

Measured and indicated resources-including reserves-total 421.6 million tonnes at 0.063% tungsten trioxide and 0.020% molybdenum, containing 26.6 million mtu of tungsten trioxide and 185.9 million pounds of molybdenum. Inferred resources add 182.9 million tonnes grading 0.048% tungsten trioxide and 0.020% molybdenum, with 8.8 million mtu and 80.6 million pounds, respectively.

Northcliff now plans to advance into basic engineering while simultaneously arranging project financing and placing orders for long-lead mining equipment. According to Ing, the company is targeting a construction decision in the latter half of 2027, with first production expected in 2030.