Historic Tungsten Production & Cannibal Creek Opportunity

Palmerville has a long history of tungsten (W) production, with numerous small to mid-scale mines operating from the early 1900s through to the 1980s. Tungsten on Palmerville Station was historically extracted primarily as scheelite, a high-value tungsten ore used in defence, aerospace, and industrial hard-metals.

One of the most significant historical operations in the region is the Cannibal Creek Tungsten Mine, located on Palmerville Station. Although not currently part of the Diversified Mining & Resources EPM portfolio, Cannibal Creek represents one of Far North Queensland’s most promising brownfield tungsten redevelopment prospects. Historical workings, high-grade scheelite occurrences and favourable geology indicate strong potential for a modern restart.

Discussions and commercial negotiations are ongoing regarding the redevelopment of this legacy mine. Importantly, the established Mount Carbine Tungsten Mine, operated by ASX-listed EQ Resources Limited (EQR), is located just 60 kilometres to the east. With an existing processing facility and established logistics, there is a potential strategic pathway for Cannibal Creek ore to be toll-treated or integrated into a regional production model — significantly accelerating development timelines and reducing capital requirements for re-commencement.

Combined with growing global demand for non-China tungsten supply to support defence and advanced manufacturing, the Palmerville district is well positioned for a near-term tungsten revival under modern mining, processing, and ESG standards.

Tungsten dominates modern kinetic weaponry due to its extreme density (1.7× lead), hardness, and high melting point. It forms the core of armor-piercing fin-stabilized discarding-sabot (APFSDS) rounds fired by M1 Abrams and Leopard 2 tanks, enabling penetration of reactive armor at 2 km/s; similar tungsten penetrators arm anti-tank missiles like the TOW-2B and Javelin. In air defense, tungsten fragments fill warheads of systems such as Patriot PAC-3 and SM-6 to shred incoming hypersonics, while tungsten-heavy alloys balance gyroscopes in precision-guided munitions and stabilize satellite kill vehicles.

Supply fragility elevates its strategic profile: China controls ~80% of global mined tungsten and enforces export quotas, with Vietnam and Russia as secondary sources. The U.S. DoD classifies tungsten as a critical mineral, holding ~10,000 tons in the National Defense Stockpile and funding recycling from scrap APFSDS cores plus new domestic mining (e.g., Nevada’s Hemerdon restart). A sustained Chinese embargo could deplete U.S. penetrator stocks within 18–24 months of high-intensity conflict, forcing reliance on inferior depleted-uranium alternatives or degraded lethality against peer armor.