Group 6 Metals Limited (ASX: G6M) continues to grow its operations at its Dolphin Tungsten Mine (DTM), located on King Island, Tasmania, ramping up production as it prepares to deliver its second shipment of high-grade Tungsten concentrate.
Second Delivery of High-Grade Tungsten Concentrate
The Company has readied its second shipment of high-grade tungsten concentrate, with the DTM team working diligently to refine and optimise operations, processing 12,500 tonnes of 0.28% WO3 low-grade ore in July and paving the way for upcoming high-grade ore processing.
Despite challenges posed by the high clay content of the remnant ore, the crushing circuit has demonstrated its capability to surpass nameplate production when supplied with fresh ore.
Furthermore, the successful initiation of drill and blast operations marks a major step forward for the Company with a steady supply of high-grade ore expected to flow to the process plant from mid-August.
Figure 1: Drilling ongoing in “West Pit” on western side of Dolphin Open Cut
Steady Production Upsurge
July saw the movement of 140,000 cubic metres (BCM) of material, aligning with the Mine’s production forecasts and proving the capability of the existing mining fleet.
Notably, over 1.5 million BCM of overburden has already been moved, surpassing waste stripping projections by a significant margin. This achievement stands to substantially improve access and operational efficiencies, especially for ore extraction on the eastern pit side.
Positioned for Excellence
The increasing demand for tungsten, driven by sectors ranging from construction to defence, sets a promising stage for the Company as outlined in a promising production forecast that anticipates a gradual increase in ore processing, ultimately reaching the targeted monthly nameplate production by Q4 2023.
Following the successful conclusion of the Share Purchase Plan, which raised an impressive $4.3 million, the team is now focused on increasing and maintaining concentrate production over the next 3 months processing higher grade ore from the Dolphin open cut.
Group 6 Metals Managing Director & Chief Executive Officer, Keith McKnight, commented, “The site team has been working diligently on ramp up and stabilising the process plant operation in anticipation of receiving higher grade ore from the open pit following the commencement of production blasting. It is not unusual to encounter challenges when ramping up a new process plant, but it has demonstrated it can produce high-grade concentrate at up to 70% of nameplate production which is a major positive for the Project.”
“It is very pleasing that we have now successfully achieved our first production blast, and we can now progress our open pit mining plan producing high-grade ore almost immediately.”
G6M’s Australian Stock Exchange-listed share price has risen 4.55 per cent today and is currently trading at 12 cents (1:45 pm UTC+ 8 hours).