Explorer Vital Metals has announced plans to reduce the pace of work done by external contractors on a feasibility study of its Watershed tungsten project, due to the current volatility of world financial markets.

In an announcement, Vital said it was aiming to start production from Watershed once it received approval from the Queensland Government environmental protection authority – which it expects to happen by March 2009.

“Such approval is the basis upon which mining leases are granted and as such, this prudent approach is not expected to alter the current timelines for the Watershed project,” it said.

The company plans to slow down tails dam, plant and pit design work on the project in order to save funds, saying it would instead concentrate of refining the current resource model for the Watershed project.

Vital also plans to undertake a test program from its 70 per cent-owned Mt Mulgine deposit sometime in November, the firm has announced.

Shares in the company closed up 1¢ or 6.6 per cent to 16¢. – West Australian