Thorunn Howatt
Northern News Services

Tungsten, NWT (Feb 11/02) - After sitting idle for nearly two decades, the CanTung Mine is again producing and will ship tungsten concentrate.

"Start-up takes more than just pushing a button and expecting a mine that has been idling for 15 years to turn on like a tungsten light bulb," said North American Tungsten president and chief executive officer Udo von Doehren. But once the decision was made to bring the mine back to life, the turnaround took only half a year.

The mine employs 130 people directly, "and right now we have a number of contractors like caterers and truckers," said von Doehren. CanTung is an underground mine but it is considered shallow because its shafts are directed in the side of a mountain.

After securing a market for its concentrate, North American Tungsten managed to raise $10 million from investors to bring up the existing mine. It received $4.5 million from Osram Sylvania Products Inc. of the U.S. and Sandvik AB of Sweden -- that's where the tungsten is going.

"They committed to buy all the concentrate that CanTung can produce. In addition we granted them an option to participate in the development of MacTung," said von Doehren.

The Cantung Mine located at Tungsten, NWT, is close to the Yukon border. The mine is expected to have about a three-year life. It is owned by North American Tungsten Ltd., also owners of the MacTung deposit which is north of the mine and also straddling the border.

"The biggest challenge, really, as a mining person is to secure a solid long-term market. And that's what we have done," said von Doehren.

MacTung has already been through feasibility studies, environmental, pilot tests and underground development work. "It is ready to go when CanTung runs out or when the market warrants it."