Demesne Resources Ltd. Responds to China Tightening Tungsten Export Controls by Planning to Update Historical Resources at Past-Producing IMA Tungsten Mine
Demesne Resources Ltd. Responds to China Tightening Tungsten
Export Controls by Planning to Update Historical Resources at
Past-Producing IMA Tungsten Mine
- NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S.
NEWSWIRE SERVICES –
● China controls ~80%+ of global tungsten extraction & processing and has recently
announced measures to curb its supply into North America
● There are no domestic tungsten producers in the United States
● Demesne is assessing the potential for the IMA Mine to play vital role in establishing
domestic tungsten supply and onshoring production capabilities
Vancouver, BC, November 21, 2024 – Demesne Resources Ltd. (CSE:DEME)
(OTCQB:DEMRF) (“Demesne” or the “Company”), in response to China’s intention to restrict
tungsten exports, plans to update and define the historical resources of the past producing, Idaho-
based IMA Mine tungsten -molybdenum property, while exploring the opportunity to bring
onshore tungsten mining and production capabilities into the United States. Key to the process will
be defining and finalizing the scope of work needed to complete an updated 43-101 technical report
and mineral resource estimate. Amidst a backdrop of China controlling an estimated 80%+ of
global tungsten extraction and processing,1 and the absence of domestic tungsten producers in the
U.S., China’s planned export restrictions underscore the need for a reliable, domestic supply of
defense critical metals for America.
Demesne's CEO, Murray Nye, commented: “With the option to explore and develop the IMA Mine
in Idaho, we find ourselves in the right place at the right time with the potential for domestic
tungsten production. The IMA Mine is a past -producer. It’s sitting on patented ground and is
readily permittable for exploration. In the near -term, we hope to re-new the IMA Mine’s historic
resources, add resource tonnes, and drive toward a mine restart. Historically , capital has been
invested in IMA over many years to advance the project by junior and senior mining exploration
companies, including the Bradley Mining Co., AMAX, and Anglo- American subsidiary
Inspiration Development. Now, it’s in the hands of the experienced Demense’s team to determine
the next chapter in the IMA Mine’s productivity.”
Tungsten is listed as a Critical Metal by the U.S. Departments of Energy and Defense, the U.S.
Geological Survey, and Canada's Ministry of National Defense. Following former U.S. Preside nt
Donald Trump's presidential election victory, China's Commerce Ministry announced new rules
that will take effect on Dec. 1, 2024, tightening export controls on dual-use technologies and items
(i.e., used for civilian and military purposes), including t ungsten. The move is an extension of
China’s ongoing tightening of export controls on critical materials in response to America’s wide-
ranging export controls on semiconductor and artificial intelligence technologies.2
1 https://asia.nikkei.com/Spotlight/Supply-Chain/China-to-tighten-export-curbs-on-critical-metals-ahead-of-Trump-s-return
2 https://asia.nikkei.com/Spotlight/Supply-Chain/China-to-tighten-export-curbs-on-critical-metals-ahead-of-Trump-s-return
In addition to potentially updating and defining the IMA Mine’s historical resources with an
updated 43-101 technical report and mineral resource estimate, Demesne also expects to define
areas warranting additional exploration. To help identify potential exploration targets, the
Company is seeking to digitize historical drilling records, assay data/production volumes, and
construct digital geological models in preparation for subsequent additional drilling and
exploration. To fund the initial work on the IMA Mine, Demesne announced a $2-million-dollar
non-brokered private placement of common shares on November 14, 2024.
The Company will provide ongoing updates as available on the IMA Mine development.
ABOUT THE IMA PROPERTY
The IMA Property is located in the Lemhi Range, near the community of Patterson, Idaho,
located approximately 20 miles east of Challis, comprising of the IMA Mine, with 22 patented
claims on 395.98 acres and an additional 214.4 acres of patented ground in adjacent Pahsimeroi
Valley. The patented claims are accessible over existing roads managed by the Bureau of Land
Management.
The IMA Property is a past producing tungsten property that began as a silver mine in the 1800s.
Between 1945 and 1957, while operated by the Bradley Mining Company, the IMA Mine
produced approximately 2,198 tons of WO3 (199,449 MTUs), from 468k tonnes of ore with an
average recovered grade of 0.434% WO3, and produced an additional sulfide concentrate
yielding 1.29M oz silver, 1.8M lbs copper, 2.92M lbs lead and 0.02M lbs zinc.3 The IMA mine
shut down in 1958 upon collapse of the U.S. government tungsten buying program.
The property was subsequently explored for molybdenum by AMAX Inc. (1960-1962),
Inspiration Development Company (“Inspiration”) (1979-1982), Gentor Resources Ltd (2007-
2008), and other junior exploration companies. Inspiration ultimately focused on exploration and
development of the quartz-tungsten-vein system, rehabilitating upper levels of the mine to
complete underground resource delineation drilling, conducting metallurgical work and
commencing construction of a haulage adit.4 Due to a decrease in tungsten prices, development
work ceased in 1982 prior to recommencement of mining.
Tungsten mineralization in the IMA Mine occurs in quartz veins hosted in Precambrian
siliciclastic metasediments containing pyrite, fluorite, hubnerite, scheelite, tetrahedrite, galena,
sphalerite and chalcopyrite. The quartz veins occur in a zone up to 900 feet wide, 2000 feet long
and up to 700 feet in vertical extent1. Molybdenite mineralization occurs in the veins and
disseminations in potassically altered Cenozoic porphyry intrusive that is exposed in the lower
levels of the IMA Mine and intersected in deeper historical drilling. Mineralization occurrence is
interpreted as consistent with a sub-Climax type porphyry model with higher-level tungsten-base
metal veins.5
3 Bradley Mining Company, 1958; Summarized Information on IMA Mine, Lemhi Co, Patterson, Idaho. Company Report, 6p
4 Victoria Mitchell, 1999; History of the Ima Mine, Lemhi County, Idaho, Idaho Geological Survey, Staff Report 99-2, University of Idaho,
August 1999.
5 Wardrop 2008; Technical Report on the IMA Mine Molybdenum Project, July 2008; Prepared for Gentor Resources Inc., 52p.
The IMA Mine is situated close to key infrastructure items and resources, including paved
county roads, tier-1 low-cost power supply, access to water rights, and a mining-oriented labour
force.
ABOUT DEMESNE RESOURCES LTD.
Demesne Resources Ltd. is a British Columbia based company involved in the acquisition and
exploration of magnetite mineral properties. The Company's Star Project consists of five
contiguous mineral titles covering an area of approximately 4,615.75 hectares located in the
Skeena Mining Division, British Columbia, Canada. The Company has entered into an option
agreement pursuant to which it is entitled to earn an undivided 100% interest in the Star Project.
Demesne has also entered into an option agreement to acquire a 100% interes t in the IMA Mine
Project, a past producing underground tungsten mine situated on 22 patented claims located in East
Central, Idaho, United States.
Social media links:
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YouTube: https://www.youtube.com/@demesneresources
ON BEHALF OF THE BOARD OF DIRECTORS:
Murray Nye
CEO
1055 West Georgia Street, Suite 1500
Vancouver, BC V6E 0B6
Canada
For further information, please contact:
Murray Nye, CEO
Email: [email protected]
Phone: +1 (416) 300-7398
CSE:DEME
OTCQB:DEMRF
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of
this release and has neither approved nor disapproved the contents of this press release.
This press release includes "forward -looking information" that is sub ject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of the Company.
Such statements represent the Company’s current views with respect to future events and are
necessarily based upon a number of assumptions and estimates that, while considered
reasonable by the Company, are inherently subject to significant business, economic,
competitive, political and social risks, contingencies and uncertainties. Many factors, both
known and unknown, could cause results, perform ance, or achievements to be materially
different from the results, performance or achievements that are or may be expressed or implied
by such forward-looking statements. The Company does not intend, and does not assume any
obligation, to update these forw ard-looking statements or information to reflect changes in
assumptions or changes in circumstances or any other events affecting such statements and
information other than as required by applicable laws, rules and regulations.
Statements concerning historical exploration and production on the property have been
obtained through both public and private sources, and are believed to be substantially factual
and relevant in that they demonstrate the tenor of exploration targets on the property. Neither
Demesne Resources, nor its Qualified Person, has done sufficient work to verify historical
information regarding past production or exploration, and this information should not be
relied upon until it has been verified.
Technical information in this news release has been prepared in accordance with Canadian
regulatory requirements set out in National Instrument 43-101 — Standards of Disclosure for
Mineral Projects (“NI-43-101”). Austin Zinsser, P.G., SME-RM, Vice President, Exploration
for the Company, and a Qualified Person as defined by NI-43-101, has reviewed and approved
the scientific and technical information in this Presentation.