The following was posted on the NAB share trading website...

The following was posted on the NAB share trading website today:

Ferret's Stock to Watch: HAZELWOOD RESOURCES LIMITED
10:15, Monday, 5 October 2009

SMALL EXPLORER DECIDES TO FOCUS ON TUNGSTEN PRODUCT MIX

Sydney - Monday - October 5: (RWE Aust Business News)
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OVERVIEW
********

Hazelwood Resources Ltd (ASX:HAZ) has picked tungsten as a metal
it wants to specialise in to become a force in the industry.
Last week the company announced it had begun a downstream
tungsten processing study.
After significant consultation with participants in the tungsten
industry and an internal review of the downstream processing techniques,
the Board of Hazelwood has chosen to implement a downstream processing
study for the production of tungsten intermediate products.
Hazelwood's personnel have attended four consecutive annual
conferences of the International Tungsten Industry Association and the
company has recently joined as a member of the organisation.
Hazelwood has remained in contact with key players in the
tungsten industry throughout this time and has provided samples of
high-purity concentrate from its Big Hill deposit to interested parties.
The company said the depth in the market for intermediate
products such as ammonium paratungstate (APT) presents greater
opportunity than that for raw concentrate alone.
Accordingly, the scope of the pre-feasibility study for Big Hill
will be revised to consider the inclusion of APT in the product mix.
The downstream processing study will consider various options
such as toll refining under a joint venture arrangement and the
establishment of a local integrated downstream production facility.
The tungsten (scheelite) concentrate from Big Hill, which is
derived from simple gravity circuit processing, is free from many of the
impurities commonly associated with tungsten deposits.
An internal review of the process routes associated with the
production of APT from concentrates has identified a competitive
advantage associated with low-contaminant scheelite concentrates.
Because fewer stages of chemical processing are required for such
feed, the APT conversion costs are expected to be relatively low.
APT generally attracts a premium relative to concentrates, which
reflects the costs of conversion, and its inclusion in Hazelwood's
product mix offers potential to improve margins and enhance project
economics.
Hazelwood is looking forward to putting the Cookes Creek tungsten
project back into production.
Last week Hazelwood disclosed that after discussions with
numerous parties at the recent ITIA conference, it is now examining the
value-adding alternatives of tungsten downstream processing.
High-purity scheelite concentrates from the Big Hill tungsten
deposit are thought to be well suited to low-cost production of APT.
The addition of APT to the product mix being considered for the
pre-feasibility study has potential to improve the marketability of
product and enhance project economics.
A simple and effective mineral processing flowsheet has been
developed.
Market samples of high-purity scheelite concentrate have already
been provided to several end-users who have expressed interest in the
product.
The project concept is for a mining and processing operation
with a production capacity of approximately 200,000 tonne units of
tungsten concentrate per annum.
Tungsten ore concentrates are currently at $US155 per tonne unit
in China whilst European APT prices are trading at $US190-$US200 per
tonne unit.
The addition of APT to the product mix under consideration as
part of the pre-feasibility study has potential to improve product
marketability and enhance project economics.
Global tungsten production is dominated by China, which
reportedly sits on 35 per cent of the world's tungsten reserves, and is
now predominantly based around the mining and processing of scheelite
ores.
Hunan Non-Ferrous Holdings has recently commenced construction of
one of the world's largest scheelite concentrate plants in the Hunan
Province of China.
Outside of China, few new tungsten projects are scheduled to come
on-line in the immediate future.
The importance of establishing new western world tungsten
production has been seized upon by Newcrest Mining.
Newcrest has recently stepped up the evaluation of its
O'Callaghans tungsten deposit, located near Telfer, in the same region as
Hazelwood's Cookes Creek tungsten project.

SHARE PRICE MOVEMENTS
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Shares Hazelwood Resources on Friday drifted down 0.5c to 21c.
Rolling high for the year is 26c and low 4.3c. The company has 129
million shares on issue with a market cap of $27 million.
In mid-August Hazelwood reported drilling results at McLeods,
confirming the tungsten target which was described as exceptional.
Shallow exploration core drilling at the McLeods target, located
1.6 km to the west of the Big Hill deposit, intersected significant
coarse grained scheelite mineralisation adjacent to old workings.
Hole 09MCD001 contained 2m @ 1.27pc WO3 from 28 to 30 metres
within a zone comprising 9m @ 0.43pc WO3 from 25 to 34 metres.
The Cookes Creek Mining Centre, which includes the McLeods
target, was subject to small-scale tungsten mining between 1951 and 1967.
This is the first time the McLeods target has been subject to
exploration drilling.
Hazelwood said the results were highly encouraging and confirmed
the McLeods Shear Zone as a significant exploration target for
near-surface tungsten mineralisation.
The mineralisation at McLeods remains open at depth and the
prospective shear zone has a strike extent of several kilometres.
Historical drilling (during 1983) around the northern end of the
McLeods Shear Zone at Area A also intersected significant mineralisation
including 2m @ 3.62pc WO3 in drillhole 83DDH4.
As recently announced, the Big Hill deposit contains higher-grade
zones including intersections of up to 2m @ 13.43pc WO3.
The exploration potential for the Cookes Creek tungsten project
is considered exceptional.
Only one third of the strike extent of the near-surface Big Hill
deposit has been resource drilled and the highly prospective McLeods
Shear Zone remains largely untested.
Hazelwood's technical director, Terry Butler-Blaxell, said it is
becoming clear the Cookes Creek project is a world-class tungsten
deposit.
"We remain undeterred from achieving near-term tungsten
concentrate production from the Big Hill deposit," he said.
"The exploration upside is a nice sweetener and offers us
perpetuity of operation."
Hazelwood is advancing through a pre-feasibility study for the
production of tungsten concentrate from the Big Hill deposit, which could
produce 2-3 per cent of the world's primary mined tungsten.
The Cookes Creek tungsten project is located in the east Pilbara
of Western Australia, about 70 kilometres by road from the town of
Nullagine.
The Cookes Creek tungsten project contains areas of historical
tungsten production.
Only a fraction of the extensive mineralised sequence at Big Hill
has been evaluated for Resources.
The Big Hill tungsten deposit occurs at surface, is shallow
dipping and is metallurgically simple with an absence of deleterious
impurity elements such as tin, arsenic, cadmium, molybdenum and base
metals.
Preliminary pit optimisation indicates a life of mine strip ratio
of less than 1:1.
A pre-feasibility study is expected to be completed by the second
half of 2009.
X-ray sorting testwork has provided an opportunity to consider a
bulk mining and processing operation to exploit the entire deposit and
further reduce operating costs.
Within the deposit there is evidence of higher-grade zones,
increasing the options for mining and processing.
New drilling at the nearby McLeods shear zone has confirmed
another target, adding to the exploration upside for the project.

BACKGROUND
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Hazelwood Resources is a relative newcomer to the ASX list.
The company is focused on becoming Australia's only tungsten
producer with 2-3 per cent of world production commencing in 2010.
Hazelwood's iron ore and nickel projects are located in the same
Cookes Creek region in the eastern Pilbara and offer significant
potential for the delineation of resources in the near future.
The Board of Hazelwood Resources comprises directors with the
requisite skills required for the challenges faced by the company on a
day-to-day basis.
Mark McAuliffe, executive chairman, is a solicitor with over 27
years experience and has acted extensively in advising mining companies,
public listed companies and institutions on a wide range of legal issues.
As executive chairman, Mr McAuliffe fulfills the role of managing
director.
Technical director Terry Butler-Blaxell is a resource company
specialist with over 14 years experience across a wide range of
commodities.
In addition to his qualifications and experience as a geologist,
Mr Butler-Blaxell holds qualifications and is extensively experienced in
financial modelling and valuation of mining companies and has written
investment research on behalf of various AFSL licensees.
Ian Richer is an engineer with more than 30 years experience in
operations in the mining industry.
His experience span commodities including iron ore, nickel,
mineral sands, titano-magnatite, aluminium, copper and uranium.
John Chegwidden is a chartered accountant with over 20 years
experience.
He has extensive experience in the mining and resources sector
with particular expertise in financial management in relation to junior
mining companies.
Mr Chegwidden has been involved in the listing of a number of
companies and has served in the capacity of executive and non-executive
director.
ENDS rx