Washington Is Writing Billion-Dollar Checks for Tungsten

Eagle Point's surface sampling provides targets for planned drilling, but selective samples do not establish mineralization grade or width.

Rhea-AI Summary

Western Star Resources (WSRIF) reported its first modern tungsten assay results from Eagle Point in New Mexico and plans a 17-hole drilling program. Tungsten was detected in all 23 surface samples; 14 exceeded 0.10% WO3, or tungsten trioxide. Selective grab samples reached 0.55% WO3, while channel CH1 returned 0.11% over 13.1 feet. Grab and stockpile samples do not establish mineralization grade or width.

The sector commentary also describes a $2.45 billion government commitment to private producer Elmet. MP Materials (MP) reported second-quarter 2026 revenue of $108.5 million, up 89%. Perpetua Resources (PPTA) received approval for a $2.9 billion senior secured loan. USA Rare Earth (USAR) finalized agreements providing access to up to $1.6 billion in funding. NioCorp Developments (NB) received approximately $8.1 million under its Department of War agreement and began mine-portal construction in February 2026.

Positive

• Minor pointEagle Point samples detected tungsten in all 23 samples, with 14 above 0.10% WO3.
• Minor pointChannel CH1 returned 0.11% WO3 over 13.1 feet, including 0.18% over 3.3 feet.
• Minor pointScheelite-bearing skarn was traced intermittently along approximately 2,600 feet of the limestone-granite contact.
• Minor point. Forward-looking: it has not happened yet and may not happen.Western Star plans a 17-hole drilling program to test the steeply dipping skarn contact.

Negative

• Minor pointGrab samples reaching 0.55% WO3 are selective and not indicative of mineralization grade or width.
• Minor pointDrilling logistics and permitting are still being advanced.
• Minor point. Forward-looking: it has not happened yet and may not happen.Western Star's investor-awareness agreement carries a US$100,000 fee over an initial two-month term upon CSE acceptance.

News Explained

This article is paid promotion: the publisher says Western Star paid US$100,000 under an initial two-month investor-awareness agreement, renewable at the term’s end after Canadian Securities Exchange acceptance, and says the company reviewed and approved the article, and the publisher identifies this as a conflict of interest.

Key Figures

Elmet commitment: $2.45 billion DLA contract: $2 billion, five years Guaranteed minimum: $150 million +5 more

Elmet commitment

$2.45 billion

Government commitment described in the article

DLA contract

$2 billion, five years

Supply contract for the National Defense Stockpile

Guaranteed minimum

$150 million

For tungsten concentrates and sodium tungstate

Preferred stock investment

$450 million

Investment to expand Elmet capacity

MP Q2 revenue

$108.5 million

Second quarter 2026

MP revenue growth

89%

Second quarter 2026

MP NdPr oxide production

840 metric tons

Second quarter 2026

MP production growth

41%

NdPr oxide production, second quarter 2026

Historical Context

1 past event · Latest: Aug 06

1 event

1. Aug 06

   Q2 earnings

   24h Move

   +7.6%

   Revenue rose 89% and NdPr production increased 41% in Q2 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

preferred stock, skarn, senior secured loan

3 terms

preferred stock financial

"a $450 million preferred stock investment to expand Elmet's"

Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.

skarn technical

"Scheelite-bearing skarn traced intermittently along approximately"

A skarn is a type of rock that forms when hot magma interacts with surrounding rocks, causing chemical changes and the creation of mineral-rich deposits. For investors, skarns can indicate areas where valuable metals or minerals might be concentrated, making them important in the search for natural resources and potential mining opportunities. Recognizing skarns helps in assessing the potential value of land or mineral rights.

senior secured loan financial

"under a $2.9 billion senior secured loan"

A senior secured loan is a type of company loan that has first priority to be repaid and is backed by specific company assets as collateral, so lenders can seize or sell those assets if the borrower defaults. For investors, that priority and collateral make these loans safer than unsecured debt, usually meaning lower interest rates and stronger recovery prospects in a default — similar to how a mortgage has first claim on a house while a credit card does not.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PHOENIX, Oct. 8, 2026 /PRNewswire/ -- U.S. Metal News News Commentary - The U.S. government has moved from warning about tungsten to paying for it. On September 15, the Department of War committed $2.45 billion to Elmet Group, a privately held U.S. tungsten producer, through a $2 billion, five-year Defense Logistics Agency contract to supply the National Defense Stockpile, with a guaranteed $150 million minimum for tungsten concentrates and sodium tungstate, and a $450 million preferred stock investment to expand Elmet's mining, processing and manufacturing capacity. Elmet has said the funding supports a joint venture to upgrade the Springer Tungsten Complex in Nevada. Active Companies from around the markets with current developments this week include: Western Star Resources Inc. (CSE: WSR) (OTC: WSRIF), Perpetua Resources Corp. (NASDAQ: PPTA), MP Materials Corp. (NYSE: MP), USA Rare Earth, Inc. (NASDAQ: USAR), and NioCorp Developments Ltd. (NASDAQ: NB).

Tungsten supports more than 100 defense programs, including the F-35, Patriot interceptors and the Precision Strike Missile, and has the highest melting point of any metal. The United States has not mined it at scale in more than a decade, and from January 1, 2027, U.S. defense procurement rules restrict tungsten sourced from China, Russia, Iran and North Korea, a restriction that reaches back to the mine.

The Elmet commitment follows a pattern that has repeated across critical minerals over the past year: government equity, loans and guaranteed purchases arriving before domestic production does. That leaves a short list of places where new American tungsten can realistically come from, and many of them are districts that were last worked when Washington was buying the metal for war.

Tungsten detected in every one of 23 surface samples, with 14 above 0.10% WO3 and grab samples up to 0.55% WO3

Continuous channel CH1 returned 0.11% WO3 over 13.1 feet, including 0.18% WO3 over 3.3 feet

Scheelite-bearing skarn traced intermittently along approximately 2,600 feet of the limestone-granite contact

Planned 17-hole program, which the Company believes will be the first drilling at Eagle Point in more than 70 years

Western Star Resources Inc.  (CSE: WSR) (OTC: WSRIF) (FRA: 4K2) has reported the first modern assays from its Eagle Point Tungsten Project in Hidalgo County, New Mexico, a property whose only recorded production was shipped during the Second World War. The strongest results cluster in Trenches 4, 5 and 6 near the granite contact, where historical trench grab samples returned up to 0.55% WO3, 0.33% WO3 and 0.28% WO3. The Company cautions that grab and stockpile samples are selective by nature and are not indicative of the grade or width of mineralization.

"These are encouraging first results from Eagle Point. We detected tungsten in every sample we collected, and the strongest results cluster in Trenches 4, 5 and 6 near the granite contact," said Blake Morgan, CEO and President of Western Star. "That gives us clear targets for our 17-hole drill program, which we believe will be the first drilling at Eagle Point in more than 70 years. Tungsten supply has become a national-security priority for the United States and we believe domestic deposits like Eagle Point have an important role to play."

The history mirrors today's policy push. Scheelite was discovered at Eagle Point in 1940, approximately 650 to 665 short tons grading approximately 0.44% WO3 were mined and shipped in 1943 and 1944, and in 1955 the U.S. Government drafted and signed a Defense Minerals Exploration Administration contract to fund 75% of shaft sinking and diamond drilling on the property. That contract was never executed and the drilling was never carried out, and no work has been done on the property since 1957. These historical figures have not been verified by the Qualified Person and are not a current Mineral Resource or Mineral Reserve.

Western Star is now integrating the 2026 results into its Leapfrog Geo model to finalize collar locations for shallow, closely spaced holes testing the steeply dipping skarn contact, while advancing drilling logistics and permitting. Eagle Point sits alongside the Company's past-producing Rowland and White Star tungsten properties in Elko County, Nevada.

Western Star Resources Inc. (CSE: WSR) (OTC: WSRIF) (FRA: 4K2) is a mineral exploration company focused on the acquisition, exploration and advancement of mineral properties, with a growing strategic emphasis on tungsten and critical minerals in the United States. The Company is advancing a portfolio of past-producing tungsten assets in Nevada and New Mexico while maintaining additional exploration exposure through its Western Star property in British Columbia.

CONTINUED... Read this and more news for sector news at: U.S. Metal News

In other industry developments and happenings in the market this week include:

Perpetua Resources Corp. (NASDAQ: PPTA)

Perpetua's Stibnite district in Idaho produced more tungsten than any other U.S. mine from 1941 to 1945, and the company is now finding it again. In August, Perpetua reported a new gold-tungsten zone in the Clark Tunnel Fault Zone at Yellow Pine, highlighted by 21.3 meters of 3.2 g/t gold and 0.9% tungsten in hole SB597, while early works continue on the Stibnite Gold Project under a $2.9 billion senior secured loan the Export-Import Bank of the United States unanimously approved in May.

"The unanimous approval by the U.S. EXIM board of our $2.9 billion senior secured loan has laid the foundation for Stibnite's future construction," said Jon Cherry, CEO, in the company's second quarter results. Perpetua ended the quarter with $574.2 million in unrestricted cash.

MP Materials Corp. (NYSE: MP)

MP Materials is the template for the government-partnered model now reaching tungsten. The company reported second quarter 2026 revenue of $108.5 million, up 89%, on NdPr oxide production of 840 metric tons, up 41%, while its Independence magnet facility advanced customer qualification and construction of its 10X facility accelerated. Its partnership with the Department of War includes support for expanding samarium oxide production.

"We also signed a significant long-term agreement to supply gadolinium to a new U.S. aerospace and defense customer at attractive economics, expanding both our customer base and our heavy rare earth product portfolio," said James Litinsky, Founder, Chairman and CEO.

USA Rare Earth, Inc. (NASDAQ: USAR)

USA Rare Earth reported that it finalized definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in funding, made up of $277 million in federal funding and $1.3 billion in senior secured loan capacity, to support its mine-to-magnet supply chain anchored by its Stillwater, Oklahoma magnet plant.

"USA Rare Earth is entering a new chapter. We are moving from assembling a world-class set of operations to delivering for our customers and driving value for our shareholders," said Barbara Humpton, CEO.

NioCorp Developments Ltd. (NASDAQ: NB)

NioCorp is advancing its Elk Creek critical minerals project in Nebraska, which is planned to produce niobium, scandium, titanium and rare earth products including NdPr, dysprosium and terbium oxides. According to its annual report for the fiscal year ended June 30, 2026, the company received a Preliminary Project Letter from the Export-Import Bank and is advancing through due diligence, has received approximately $8.1 million of $10.0 million available under its Department of War agreement, and began construction of the mine portal in February 2026.

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This article is being distributed by U.S. Metal News, which is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has been paid a fee directly by Western Star Resources Inc. for Western Star Resources Inc. advertising and digital media services. MEL and Western Star Resources Inc. are parties to an Investor Awareness Agreement dated September 11, 2026, under which MEL provides branding, communications, advisory and general consulting services, including SEO, digital media campaigns, media consulting, business development, multimedia and project management, together with weekly ticker tag articles and news-based tags, for a fee of US$100,000 over an initial two-month term upon acceptance by the Canadian Securities Exchange, renewable at the end of the initial term. MEL also expects to receive further compensation as part of an ongoing digital media effort to increase visibility for the company. No further notice will be given, but let this disclaimer serve as notice that all material, including this article, has been reviewed and approved by Western Star Resources Inc.

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Cautionary Note Regarding Exploration Results. Eagle Point is an early-stage exploration property. Western Star Resources Inc. has not defined any Mineral Resource or Mineral Reserve at Eagle Point, and there is no certainty that further exploration will result in the delineation of a Mineral Resource. Grab and stockpile samples are selective by nature, are not representative of mineralization on the property, and are not indicative of the grade or width of mineralization; stockpile samples are not in situ and their original source location cannot be confirmed. Channel results are reported as sampled lengths, and the estimated true width cited is the Company's estimate. Given the reconnaissance-scale nature of the program, no independent field standards, blanks or duplicates were inserted into the sample stream, and the Company relied on the laboratory's internal QA/QC procedures. Molybdenum was not included in the analytical package, the mineralogy and recoverability of the tin reported are unknown, and the Company's interpretation of element correlations is preliminary. Historical production, historical drill logs and other historical information referenced in this article pre-date modern reporting standards, have not been verified by the Qualified Person, are not a current Mineral Resource or Mineral Reserve, and should not be relied upon or aggregated with the 2026 results. The 1955 Defense Minerals Exploration Administration contract referenced was never executed, and its existence is not evidence of mineralization. The planned drill program has not commenced, remains subject to permitting, logistics and financing, and may change. Drilling results of other companies referenced in this article are core lengths that may not represent true widths and are not indicative of results at any Western Star Resources Inc. property. The scientific and technical information about Eagle Point in this article is derived from the Company's news release dated October 7, 2026, in which, according to the Company, that information was reviewed and approved by Jacob Anderson, CPG (#12160), MAusIMM (#3089445), a Qualified Person as defined by National Instrument 43-101 who is independent of the Company. The Qualified Person has not reviewed or approved this article. Additional information is available in the Company's filings on SEDAR+ at www.sedarplus.ca. Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this article.

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SOURCE U.S. Metal News

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Western Star Resources find at Eagle Point?

Tungsten was detected in all 23 surface samples, with 14 above 0.10% WO3. Channel CH1 returned 0.11% WO3 over 13.1 feet, including 0.18% over 3.3 feet. The strongest results clustered in Trenches 4, 5 and 6 near the granite contact.

What drilling does Western Star Resources plan at Eagle Point?

Western Star plans a 17-hole program using shallow, closely spaced holes to test the steeply dipping skarn contact. The company believes this would be Eagle Point's first drilling in more than 70 years. It is integrating the 2026 results into its geological model to finalize collar locations while advancing logistics and permitting.

How is Elmet's $2.45 billion government commitment structured?

Elmet's commitment comprises a $2 billion, five-year Defense Logistics Agency contract and a $450 million preferred stock investment. The contract supplies the National Defense Stockpile and includes a guaranteed $150 million minimum for tungsten concentrates and sodium tungstate. Elmet said the funding supports a joint venture to upgrade Nevada's Springer Tungsten Complex.

What production and customer developments did MP Materials report?

MP Materials reported second-quarter 2026 NdPr oxide production of 840 metric tons, up 41%, and signed a long-term gadolinium supply agreement with a new U.S. aerospace and defense customer. Its Independence magnet facility advanced customer qualification, construction of its 10X facility accelerated, and its Department of War partnership includes support for expanding samarium oxide production.

Did Western Star Resources pay for the tungsten commentary?

Western Star paid the publisher's owner, Market Equities Limited, for advertising and digital media services under an investor-awareness agreement carrying a US$100,000 fee. The agreement is dated September 11, 2026, covers an initial two-month term upon Canadian Securities Exchange acceptance, and is renewable. Western Star reviewed and approved the material; the publisher disclosed that compensation creates a conflict of interest.