TSXV - TM
Frankfurt - TUY
Pink Sheets - TUMIF
VANCOUVER, Oct. 2, 2012 /CNW/ - Tumi Resources Limited (the "Company") (TSXV: TM) (Pink Sheets: TUMIF) (Frankfurt: TUY). Mr. David Henstridge, President, reports that the Company has acquired through staking the Yxsjon Nr5 exploration license totaling 684 hectares in south-central Sweden. This licence is in addition to the five tungsten licences previously staked - Wigstromsgruvan, Sandudden, Gustavsberg, Gussarvet and Gensgruvan (see press release dated November 9, 2011).
The primary target commodity on all six licences is tungsten and associated fluorite with possible additional values in copper and beryllium at Yxsjoberg. While the tungsten price has dropped slightly since the beginning of 2012, the market fundamentals are still strong, and prices should recover when demand returns. China is currently the largest producer with 2009 data showing greater than 75% of global production. As the domestic consumption within China continues to increase rapidly, and with the country already being the largest consumer by far, China is soon expected to be a net importer of tungsten. By staking this additional Yxsjon claim, the Company is well positioned for tungsten exploration in Sweden over the coming years.
A brief description of the historic Yxsjoberg mine is as follows: Yxsjoberg is a skarn-hosted tungsten-copper-beryllium deposit located in the Bergslagen mining district in south-central Sweden. The earliest records of mining at Yxsjoberg date back to the 18th and 19th centuries when the deposit was mined for copper. Scheelite was first identified in 1862, and tungsten was mined between 1918 and 1921. A new concentrator was built in 1937 after the mine had been reopened, and a roasting furnace and new gravimetric separator was added in 1951. A circuit for the production of fluorite concentrate was added in 1956. After closure in 1963 due to poor metal prices, the Swedish State-owned mining company AB Statsgruvor acquired the mine, and the construction of a completely new concentrator and headframe began in 1970. The new plant was put in production in 1972 and was converted from gravimetric separation of scheelite and chalcopyrite to selective flotation in 1977. The mine ended operations in 1989, again due to low tungsten prices. The known mineralization continues to a depth of 750 meters, but geophysical measurements indicate that it is likely to continue down to at least 900 meters (NSG report NSG_89026).
The Yxsjoberg process plant has largely been left untouched since the closure of the mine, and two large ponds containing 2.4 and 2.2 million tonnes of tailings remain (Comet, 1992). Though the remaining known tungsten resource in the mine is limited to approximately 500,000 tonnes of mineralization averaging 0.35% WO3*, the tailings should also be considered for reprocessing. The average grade of the tailings has been estimated to be approximately 0.19% WO3* with additional values consisting of beryllium, copper and fluorite. According to a report by Kemakta Konsult AB the total tonnage of beryllium in the tailings may exceed 920 tonnes at an average grade of approximately 0.02% beryllium*. As the beryllium price is around $930 USD/kg the additional metal value may be significant.
Mr. Henstridge stated: "With the addition of the historic Yxsjoberg mine to the assets already secured 100% by the Company, Tumi has positioned itself as a major player in tungsten and associated metal exploration in Sweden. As the Yxsjoberg mineralization may also contain significant additional values in the form of beryllium, copper and fluorite, the company is preparing an initial sampling program to verify the reported grades."
*The data is historical in nature and was compiled prior to the implementation of NI 43-101 reporting standards. The Company has not completed sufficient exploration to verify the estimates and is not treating them as NI 43-101 defined resources or reserves verified by a Qualified Person; the historical estimate should not be relied upon.
The qualified person for the Company's projects, Anders Hogrelius, a Member of the Australian Institute of Geoscientists, has visited all of the Company's properties in Sweden and has verified the contents of this news release.
On behalf of the Board,
David Henstridge, President & CEO
Forward Looking Statements This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.
SOURCE: Tumi Resources Limited
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