The Pilot Mountain tungsten project in Nevada has taken a significant step forward with the completion of a positive pre-feasibility study (PFS). This development positions the project as a potential game-changer in the US tungsten supply chain, which has seen no domestic production for over a decade.
The study, completed by US-based specialist firms Samuel Engineering, Inc. and RESPEC Company LLC, outlines a robust operation with compelling economics. At base case tungsten pricing, the project is planned to produce 15,916 tonnes of WO3 over an 8-year mine life, generating after-tax free cash flow of US$1.058 billion with a capital payback period of just one year from first commercial production.
Strong economic potential demonstrated
The PFS highlights the project’s strong economic potential, with an after-tax net present value (NPV8) of US$660.3 million at an 8% discount rate and an internal rate of return (IRR) of 59.6%. These figures are based on conservative pricing assumptions using a tungsten price of US$197,300 per tonne of WO3representing a ~35% discount to current market prices.
At the 12 June 2026 tungsten spot price of US$304,000 per tonne, the project’s economics become even more compelling, with an IRR of 101.6%, an NPV8 of US$1.366 billion, and a capital payback period of just 6 months from first commercial production. The study also outlines expected low initial capital expenditure of US$288.7 million, with sustaining capital of US$33.9 million and closure costs of US$22.3 million.
Strategic importance for US defense and industry
Oliver Friesen, Chief Executive Officer of Guardian Metal, emphasized the strategic importance of the project: “We are delivering this study at an inflection point. The global tungsten market is undergoing an unprecedented structural reset, and securing reliable, home-grown critical mineral supply has never been more important.”
The project received a significant boost from a US$6.2 million Defense Production Act (DPA) Title III investment from the U.S. Department of War in July 2026. This support underscores the project’s importance for US defense, technology, aerospace, and national security priorities.
Marc Leduc, P.Eng., Operations Manager of Guardian Metal, highlighted the project’s simplicity and high margins: “We are proposing the use of conventional mining and processing methods throughout, producing what we believe will be a high-quality concentrate capable of being processed entirely within the US.”
The PFS outlines a conventional open-pit mining operation with first ore through the mill targeted for Q4 2028. The operation plan calls for the construction of a 4,000 tonne per day processing plant using flotation recovery methods to produce a tungsten concentrate. The ore will be mined using 92-tonne haul trucks and large wheel loaders.
The project has seen its mineral resources increase to 21,600 tonnes of WO3 Indicated, with Probable Mineral Reserves of 20,275 tonnes of WO3. The operation is designed to produce ~2,000 tonnes of WO3 in concentrate per annum, with a targeted concentrate grade of greater than 60% WO3 over the life of mine.
Guardian Metal will host a live investor presentation on 01 July 2026 at 11:00 ET / 16:00 BST to discuss the PFS results and provide an update on the company’s outlook, including next steps for the Pilot Mountain Project.
