In a significant milestone for the Company, Group 6 Metals Limited (ASX: G6M) have kicked off commercial production at its Dolphin Tungsten Mine in Tasmania, producing approximately ten tonnes of saleable tungsten concentrate.
Figure 1: Stockpile inventories of saleable tungsten concentrate building at the Dolphin Tungsten Mine
Tungsten Concentrate Production Milestone
Dolphin’s processing plant began operating on the 1st of June and achieved 70% runtime last month, processing over 10,000 tonnes of low to medium-grade ore with an average grade of 0.3% WO3 into 10 tonnes of concentrate boasting enviable grades of up to 68% WO3, with preliminary site assays showing an average concentrate grade of 55% WO3.
The grade of concentrate produced meets the requirements for the several offtake deals G6M has already secured for DTMs products, with concentrate now being loaded into containers the first shipment of export sales is expected to take place later this month marking a major step forward as the Company transitions into becoming a leading tungsten producer.
G6M’s site team continues to work on optimising performance to maximise concentrate recovery and achieve the Mine’s 400 thousand tonnes per annum processing capacity to fulfil its offtake agreements with just under 60 per cent of DTM’s production for the first four years already set for offtake according to an Investor Presentation held by the company last month.
Figure 2: Concentrate being loaded into a container for export sale
The timing of commercial production at Dolphin Tungsten Mine is ideal, considering the strong global tungsten price and the projected growth in demand, with the critical mineral expected to see increased demand from emerging applications in the battery and technology sectors, further adding to its allure.
The company noted that by achieving the off-take contract requirements and showcasing the viability of the unique flow sheet at the Dolphin Tungsten Mine, the Company has effectively demonstrated the efficiency of its operations.
Site Optimisation and Future Plans
With production now well underway, the company is shifting its focus to upcoming drill and blast operations, which are anticipated to enhance the performance of the process plant by increasing the ore head grade and are expected to deliver additional ore from the run-of-mine to the processing plant later this month.
In a recent open day event at the Mine, the Company provided an opportunity for over 180 local residents to witness the progress made since the commencement of construction in early 2022. The event received an overwhelmingly positive response, highlighting the enduring support of the local council and residents of King Island, which has greatly contributed to the Project’s success.
Figure 3: Photos from Dolphin Tungsten Open Day, 2nd July 2023
Keith McKnight, the Managing Director & Chief Executive Officer of Group 6 Metals, expressed his enthusiasm for this achievement, stating, “We are thrilled to achieve commercial production within weeks of producing our first concentrate at the Dolphin Tungsten Mine. The successful processing of over 10,000 tonnes of ore in June and the production of sale-ready concentrate represent another significant milestone for the Company. It is a testament to the hard work and dedication of our site team and contractors.”
G6M’s Australian Stock Exchange-listed share price has risen 3.85% today and is currently trading at 14c today (11:55 am UTC+ 8 hours).