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Group 6 Metals Grow Tungsten Resource

26 June 2023 14:43
ASX: G6M
G6M Tungsten Mine

Hot off commencing production at the historic mine, Group Six Metals have once again grown the potential of its Dolphin Tungsten Project by delivering a high-grade Probable Reserve of 0.45Mt @ 0.9% WO for the Bold Head Mine and including it in the reserve inventory and projected mine life of the Dolphin Tungsten Mine.

Major Mine

Bold Head is a previously operated satellite mine located just 2km to the north of the Dolphin Processing Plant which hosts similar geology and mineralogy to the larger Dolphin Tungsten Mine, and its inclusion into the Dolphin Tungsten Project delivers a 10 per cent increase to the Project’s Total Probable Reserve which now stands at 4.87 Mt @ 0.9% WO3.

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Figure 1: Location of the two mines

With the maiden mineral reserve now delivered, G6M will advance on its planned mining operations, which consists of mining the remaining open-cut high-grade remnant before going back into the old underground mine to continue operations, with the Mine expected to produce approximately 100ktpa over 4.5 years and offer further throughput to the Dolphin Processing Plant, supplementing the 3-400ktpa produced from the Dolphin Mine.

Bold Hill and Dolphin will be mined in parallel, increasing total tungsten output before the transition to the Dolphin underground mining operation, with pre-feasibility studies of the processing of Bold Head’s ore through the Dolphin Processing Plant expected to deliver $56.5 million in earnings before interest, taxes, depreciation and amortisation, producing 3,600 t of WO3 concentrate over the 4.5 year mining period.

Looking Ahead

The Company said that it is now planning geotechnical and resource extension drilling and definitive feasibility studies to further grow the Project’s total resource and Project life.

“Announcing a maiden Reserve on Bold Head and having secured a Mining Lease Application and surface rights is a very positive step towards developing Bold Head as a satellite deposit, further leveraging the new infrastructure developed at Dolphin,” Managing Director and Chief Executive Officer Keith McKnight said.

“The initial studies into the feasibility of the Bold Head Mine are encouraging, and it is planned to continue adding to the mine life through exploration and infill drilling. Future feasibility studies will investigate the opportunities to reduce mining capex and opex to enhance the value of both the Bold Head and Dolphin Mines.”

G6M’s Australian Stock Exchange-listed share price has risen 3.8 per cent today and is currently trading at 13.5 cents (2:10 pm UTC+ 8 hours).

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