American Tungsten Corp. (TSXV: TUNG | OTCQX: TUNGF | FSE: RK90) has established a substantially larger resource base at its past producing IMA Mine in Idaho. In a new InvestorNews interview with host Tracy Hughes, CEO and Director Ali Haji discussed the company’s newly announced mineral resource estimate, its plan to produce tungsten concentrate from historical tailings and the economic assumptions that will be tested in an upcoming Preliminary Economic Assessment.
The mineral resource estimate includes 316,000 tonnes of indicated resources grading 0.55% tungsten trioxide, or WO₃, and 2.178 million tonnes of inferred resources grading 0.55% WO₃. Together, the underground resource contains approximately 13,680 tonnes of WO₃ and more than 2.25 million ounces of silver. A separate surface tailings resource contains 267,000 indicated tonnes grading 0.155% WO₃, with 413 tonnes of contained WO₃ and 79,000 ounces of silver.
“When we started the company, the vision was to ensure that we had a seven to ten year mine life,” Haji said. He noted that the approximately 2.5 million tonne underground resource is more than eight times the roughly 300,000 tonnes contained in the historical estimate upon which the company began its work. The new estimate has an effective date of July 15, 2026, was prepared independently by Minetech, LLC and incorporates more than 17,000 feet of drilling completed by American Tungsten since December 2025.
For Haji, the defining feature is the underground resource grade. The estimate was reported using a 0.20% WO₃ cut off based on a tungsten price of US$1,300 per metric tonne unit, total site operating costs of US$165 per tonne, 80% recovery and 80% payability. Silver and molybdenum occur alongside the tungsten and could provide valuable byproduct credits, although their economic contribution will need to be established through the company’s technical studies.
“Grade is king,” Haji told InvestorNews. “Our head grade at 0.55% would be deemed the highest new resource announced in the United States.” He added that the proposed cut and fill underground mining method should allow American Tungsten to selectively mine the vein system while limiting the amount of waste entering the processing circuit.
American Tungsten’s proposed first step toward production is the processing of the historical tailings already situated at IMA. Haji said metallurgical testing is underway and results are expected by the end of September. Subject to successful testing, engineering and commissioning, the company is targeting its first concentrate sale before Christmas 2026.
“The tailings are homogeneous in nature and shovel ready, allowing us to bring production online quite quickly,” Haji said. Management estimates that the tailings could potentially generate between US$45 million and US$75 million in revenue over approximately two years, with relatively low mining costs because the material would not require conventional drilling or blasting. These projections remain forward looking, and the mineral resource estimate cautions that mineral resources are not mineral reserves and do not yet have demonstrated economic viability.
Revenue from the tailings could help finance the proposed restart of the main underground mine and reduce the company’s dependence on additional equity. Haji said the objective is to use production as a competitive advantage by demonstrating that the flowsheet works, establishing an operating history and directing early cash flow toward the larger mill and underground development program.
The company is also continuing to expand the resource. Its current estimate incorporates more than 17,000 feet of American Tungsten drilling, while more than 50,000 feet of company and historical drilling have contributed to the broader geological model. American Tungsten initially announced a 35,000 foot surface and underground program, and Haji said approximately 8,000 feet of additional core still requires cutting, assaying and reporting.
“We will conclude in and around 35,000 to 40,000 feet in time for our PEA,” he said. “The intent is to move more of that tonnage from inferred to indicated, but also to ensure that we have the capacity to grow the potential of the IMA Mine.” Mineralization remains open within several known vein systems, and the company is advancing an additional crosscut to support infill drilling.
American Tungsten has financed the program through a succession of increasingly larger capital raises. The company completed a C$7 million financing at C$0.50 per share in July 2025, approximately C$18 million at C$2.58 per share in October 2025 and a C$40 million bought deal financing at C$2.80 per unit in March 2026. Haji said the capital has been deployed toward drilling, rehabilitation, technical studies and the phased production strategy.
The company has also received a US$25.5 million letter of interest from the Export-Import Bank of the United States. That prospective financing remains subject to EXIM’s application, due diligence, approval and documentation requirements, with the PEA expected to form an important part of the process.
American Tungsten is targeting publication of the PEA in October. The study is expected to provide the market with its first independent economic assessment of the proposed underground operation, including capital costs, operating costs, recoveries, production rates and sensitivity to tungsten prices. It will therefore be an important test of Haji’s argument that IMA’s grade, existing infrastructure, patented land position and proposed mining method can support competitive economics.
Haji will present the American Tungsten story at the Defense Industrial Base Accelerator in Philadelphia from August 25 to 27 and at the Critical Minerals Expo North America in Atlanta on October 28 and 29. He also confirmed that the company is continuing to pursue its planned Nasdaq uplisting as it works to broaden its exposure to American investors.
For investors following the race to restore domestic tungsten production in the United States, the new resource gives American Tungsten substantially greater scale than its historical starting point.
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