Group 6 Metals (ASX:G6M) is working towards increasing the production rate from ‘higher-grade’ ore at its Dolphin Tungsten Mine in Tasmania.
In the $100.34 million market capitalisation company’s latest quarterly report, released late yesterday (31 October), Group 6 said its site team would be looking to increase production as it completed necessary defect rectification work.
The company aims to capitalise on the increasing demand for tungsten and become a ‘leading’ producer of tungsten concentrate.
As previously announced, during August, Group 6 mined 16,374 tonnes of ore and 119,530 bank cubic metres (BCM) of surveyed waste material as mining progressed through the transitional zones within the Dolphin pit.
In September, the company mined 20,351 tonnes of ore.
This means over the full September quarter, Group 6 mined 61,039 tonnes of ore and processed 39,433 tonnes.
Further, during the September quarter, the company began commercial production at Dolphin and achieved a quarterly saleable tungsten production of 86.7 tonnes.
Group 6 Metals is also nearing completion of a peer review of its mine plan, with a focus on bringing forward ‘higher-grade’ ore.
In some areas, this higher-grade ore is greater than 1% tungsten oxide (WO3), which the company says should ‘significantly’ increase concentrate production from the process plant.
During the September quarter, Group 6 Metals appointed a ‘highly experienced’ process plant manager to guide the team as it increases its knowledge and experience in operating the plant.
Following the end of the quarter, Group 6 Metals says it achieved a daily production record through the crushing circuit and is steadily making further improvements.
Meanwhile, as far as exploration goes, at the Investigator 22 and Investigator 24 prospects, the company aims to test the area’s full potential under an exploration lease and extend the project life beyond 14 years.
This will be done through nearby mine and exploration drilling projects, with further exploration drilling planned for Q2 2024.
Group 6 Metals says it anticipates resuming exploration at both prospects after ramping up and achieving steady-state production at the Dolphin mine.
Market conditions have remained relatively consistent for tungsten, with a price decrease offset by a decrease in foreign exchange.
The company says this is expected to continue into early 2024, and an increase in demand is expected to occur later that year from the defence, construction, and mining and energy sectors.
As of 30 September 2023, the company had $3.05 million cash at hand and $1.95 million in undrawn debt facilities, according to its latest quarterly report.
Group 6 Metals is an Australian resources explorer and developer focused on its wholly owned Dolphin Tungsten Mine in King Island, Tasmania.
Write to Aaliyah Rogan at Mining.com.au
Images: Group 6 Metals
