Group 6 Metals have hit another major milestone at its flagship Dolphin Tungsten Mine in Tasmania, with the Company having now made its first shipment of approximately thirteen tonnes of tungsten concentrate from the historic mine.
Loaded at the Port of Grassy, the concentrate within the first shipment boasts a notable average grade of 69% WO3 a total shipment value of an estimated ~ AU$0.3 million CIF.
Figure 1: Loading of concentrate onto the vessel
Group 6 expects to receive 85 per cent of the proceeds from this sale in the next week or so as the dispatch of this first shipment will trigger payment under an offtake agreement the producer secured before production, with the Company having already secured offtake for just under 60 per cent of the Mine’s production for the first four years.
The processing plant at Dolphin Tungsten Mine achieved commercial production earlier this month after operation kicked off on the 1st of June, 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 after hitting a 70 per cent runtime for June.
With commercial production now well underway and delivery of payment expected in the near future, Group 6 Metals are now looking to grow its operation even further with an extensive drill and blasting program set to restart operations at the Dolphin open-cut mine and provide additional run of mine ore to the plant.
Drilling has now commenced on the north cut back of the open cut ahead of the initial blasting, with the company expecting ROM ore to be delivered to the plant by early August to increase throughput and ore head grade.
Alongside the drill and blasting program, the Company has recently gained a significant extension to the Projects lifetime through the delivery of a high-grade Probable Reserve of 0.45Mt @ 0.9% WO for the nearby Bold Head mine, which is now included in the Project reserve inventory and projected mine life, with its total Total Probable Reserve now standing at 4.87 Mt @ 0.9% WO3.
The Company said that this first shipment of concentrate is a significant step towards building cash flow to support the next phase of the Company’s growth.
“Commercial sales at the DTM is well timed as the tungsten price remains strong and global forecast demand for tungsten is growing,” Chief Executive and Managing Director Keith McKnight said.
“We are very pleased with the performance of the plant, which is producing concentrate grade well above the target grade of 63%, considering the ore currently being processed is the lower grade remnant ore at 0.3%WO3. Once we commence processing of ROM ore we expect higher grade ore which increases concentrate production for the plant.”
G6M’s Australian Stock Exchange-listed share price has risen 4 per cent today and is currently trading at 13 cents (1:01 pm UTC+ 8 hours).