EQ Resources (ASX:EQR) approved progression of the Mt Carbine expansion project in Far North Queensland, advancing plans to lift processing capacity and expand infrastructure at its tungsten operation, according to a Wednesday Australian bourse filing.

The project supports ongoing drilling programs focused on converting resources into reserves and identifying higher-grade ore zones, per the filing.

The expansion centers on deploying upgraded crushing, screening, ore sorting, and integrated materials handling systems to boost efficiency, cut ore handling by up to eightfold, reduce diesel consumption, and lower operating costs per tonne, the filing said.

A phased execution plan, supported by a AU$39 million Association for the Advancement of Cost Engineering International class 3 capital cost estimate, covers detailed engineering in the current year, followed by construction and commissioning from mid-year to early 2027, and full performance testing targeted for March 2027.

Funding will be drawn from existing cash reserves and operating cash flows, the filing added.

The company's shares rose around 7% in recent Wednesday trade.