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G6Ms Dolphin Ore body proves it has world-class potential

11 March 2024 13:08
ASX: G6M

Resource exploration, development and production company Group 6 Limited (ASX: G6M) proven the world-class potential of it’s Dolphin Ore Body located on King Island, Tasmania, which has ore body exceeded expectations and is delivering an average mining grade of 0.63 per cent W03.

Not only have average mining grades at Dolphin Tungsten Mine sharply increased since G6M transitioned it’s operations to the main dolphin ore body, but the results exceeded the initial January-February grade projections.

Consequentially, the process plant received a higher-grade ore supply earlier than expected which fast-tracking concentrate production.

Promising results

The positive results come after grade control models which concerned Dolphin Pit Stage 01A and 01B were updated in January.

In the update, blast drill rig patterns were sampled at 2.5m intervals and assayed to allow room for a high-grade mining block model to be generated, with ultra-high-grade assays up to 9.04 per cent WO3 returned.

February’s processing started strong, running uninterrupted for the month’s first seven days. Although two days of downtime was required for refurbishment of the drive assemblies, both mills have running stably since the plant restored processing in February 23.

Following the changes implemented at the beginning of March, DTM produced a record 1231 tonnes of dry ore which exceed 50 tph over the course of 24 hours.

Although unplanned downtime imposed a challenge on the miner, DTM’s most recent results have bolstered G6M Chief Executive Keith McKnight’s confidence.

“Despite these challenges with the plant, recent performance gives us confidence that we can continue to improve the plant performance in line with our production forecasts,” he said.

“We are fortunate to have such a world class orebody that continues to exceed expectations, while focused on the main task at hand which is continuous operation of the plant and improving recoveries.”

Looking forward

With plant recoveries improving and the recent high grade DTM results, G6M both expects plant results to begin improving and production forecast to be met within the next 3-4 months.

Looking ahead, higher-grade ore from the Dolphin pit is expected to be targeted in order to maximise concentrate production from the plant.

Throughout the first year of open cut mining, much of the low-grade ore (below 0.2 per cent WO3) will be stockpiled and sorted prior to processing, which is expected to notch a higher-grade feedstock and improve recoveries.

Company comments

“The Dolphin ore body is viewed as a standout in the context of known tungsten orebodies in the Western world and it is very pleasing to see the results for our grade control activities re-affirm this,” said Mr McKnight.

“The geological team has established robust processes for grade control and is using this information to reconcile and recalibrate the geological model to ensure we maximise mining recoveries.

“We are already seeing the benefit of this by consistently recovering high grade ore that is outside the geological model.

“While the process plant’s operating performance has continued to improve, it has been somewhat challenged by unplanned downtime.

“Since restarting in early January, there have been several mechanical issues with the ball mills that have caused unplanned downtime.

“Gekko completed rectification of these issues which is expected to significantly improve the reliability of the mills.

Now that these issues have been resolved, we anticipate a more reliably operating plant that can consistently achieve its processing targets.”

Group 6 Metals Australian Securities Exchange listed share price has risen 8.5 per cent today and is currently trading at $0.051 (12:51 pm UTC + 8 hours).

 

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