Gold Mountain weighs revival of wartime Brazil tungsten mine

Gold Mountain (ASX: GMN) is exploring the possibility of reviving a tungsten mine in Brazil that was active during World War II. The company secured an exclusive right to acquire the mining application for a 858-hectare site at the former Malhada do Angico mine in the Seridó Tungsten Province, one of South America's leading tungsten-producing areas.

The transaction, which could involve payments of up to 3 million reais ($600,000), is subject to a 12-month due diligence period. CEO David Evans expressed enthusiasm for the opportunity in the tungsten sector, stating that the company will accelerate exploration and commence drilling once permits are obtained. The historic Malhada do Angico mine was previously operated by Mineração Fluminense during World War II, extracting scheelite-mineralized rocks.

The mine was developed in skarn units containing scheelite associated with the Jucurutu Formation, which hosts several tungsten deposits in the Seridó district. Gold Mountain's proximity to the Brejuí mine, one of Brazil's largest tungsten operations, strengthens its exposure to a region with a proven history of tungsten mining.

The company has already started auger drilling of historic tailings to confirm grades and gather samples for metallurgical testing. Tungsten's significance extends beyond industrial uses, as it plays a vital role in defense applications, such as ammunition and materials requiring high strength and heat resistance. Global tungsten supply is primarily concentrated in China, with Russia and North Korea also producing the metal, causing concerns among Western governments about supply security.

As geopolitical tensions rise and military spending increases, there is a growing emphasis on strengthening domestic and allied supply chains for these strategically important raw materials.