Western Star Resources Secures Option for Nevada Tungsten Project Amid U.S. Critical Mineral Push
TL;DR
Western Star Resources acquires a high-grade tungsten project in Nevada, positioning the company to capitalize on U.S. government support for domestic critical mineral production.
Western Star Resources will acquire the Rowland Project through staged payments and exploration milestones, beginning with geophysics and sampling to advance toward drilling.
This acquisition supports U.S. efforts to establish domestic tungsten production, reducing reliance on foreign sources and strengthening national security and supply chains.
The Rowland Project contains tungsten grades up to 3.38% WO₃ from historical production and represents a significant exploration opportunity in Nevada's Jarbidge district.
Western Star Resources Inc. has entered into an agreement to acquire the option for the past-producing Rowland Project located in Nevada's Jarbidge mining district. The property represents a strategic tungsten asset at a time when the United States lacks domestic commercial production of this critical mineral.
The Rowland Property features high-grade tungsten mineralization with historical reports showing values of 3.38% WO₃. The project includes a road-accessible past-producing mine with mine workings consisting of two shallow shafts and several hundred feet of open cuts. Historical production records indicate that in 1943, W.J. Rowland shipped 4.5 tons of ore containing 3.38 percent WO₃ to Metals Reserve Co., followed by approximately 1,000 tons of ore containing 0.5 to 1.0 percent WO₃ produced during 1954-56.
The geological setting involves rocks including limestones, shales, and quartzites intruded by a quartz monzonite stock. Adjacent to the intrusive body, the shales and limestones have been extensively metamorphosed to skarn and hornfels in zones up to 100 feet wide. Scheelite occurs as coarse crystals and is also finely disseminated with molybdenite, powellite, pyrite, chalcopyrite, and limonite in a garnet, epidote, quartz, and calcite skarn.
This acquisition comes at a pivotal moment for U.S. critical mineral security. Tungsten is indispensable for defense, aerospace, energy, and semiconductor industries, yet the U.S. currently has no domestic commercial production and depends heavily on imports, with approximately 85% of global supply controlled by China. Recent Executive Orders have prioritized fast-tracking domestic tungsten projects, with federal grants and defense-sector support available for qualifying assets.
Blake Morgan, CEO of Western Star, emphasized the strategic importance of the acquisition, stating that securing a domestic source of tungsten represents both a business opportunity and a matter of national importance. The company plans immediate exploration activities including geophysics, channel sampling, and mapping, with the goal of advancing the project to a drill-ready stage for a maiden program early next year.
Under the agreement terms, Western Star will pay total consideration of CAD $60,000 and issue 1,000,000 common shares. The transaction includes deferred milestone considerations tied to specific performance targets, including share issuements for expanding the claim area and identifying high-grade samples, completing successful drilling or trenching programs, and achieving compliant resource estimates. The vendors retain a 1.5% Net Smelter Return royalty, with Western Star having the right to buy back 1.0% for CAD $1,000,000.
The underlying option agreement requires Western Star to make payments totaling US$50,000 through 2028 to earn a 100% interest in the property, subject to a 0.5% production royalty. This acquisition positions Western Star at the forefront of U.S. efforts to rebuild domestic supply chains for critical minerals while complementing the company's existing portfolio, including its flagship drill-permitted green metals project in Canada.
Curated from NewMediaWire