Group 6 Metals (ASX:G6M) has added a maiden Mineral Resource Estimate (MRE) for its Bold Head Mine to the reserve inventory and projected mine life of the Dolphin Tungsten Mine in Tasmania.
The company reports the maiden MRE for Bold Head consists of 450,000 tonnes @ 0.9% WO3 and represents a 10% increase to the overall probable reserve for Dolphin and Bold Head to 4.87 million tonnes @ 0.9% WO3.
Group 6 Metals reports the mine is scheduled to produce about 100,000 tonnes per annum over the next 4.5 years, which is expected to provide additional throughput to the Dolphin Processing Plant and increase tungsten output ahead of the commencement and transition of Dolphin to an underground operation.
Prefeasibility studies (PFS) involving processing Bold Head ore through the Dolphin starter plant later in the mine life have provided ‘positive’ results, with an earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $56.5 million, a net present value (NPV) of $14.4 million, and an internal rate of return (IRR) of 51%.
The company reports future work, including geotechnical and resource extension drilling and definitive feasibility studies, is planned. Bold Head is a previously operated satellite mine that lies 2km north of the Dolphin processing plant.
Commenting on the inclusion of the Bold Head MRE, Group 6 Metals Chief Executive Officer (CEO) and Managing Director Keith McKnight says: “During ramp-up of the Dolphin Tungsten Mine and Processing Plant to nameplate operations, the company is keen to continue developing regional opportunities surrounding the mine, building on the high-grade resource base of the project.
“The initial studies into the feasibility of the Bold Head Mine are encouraging”
Announcing a maiden reserve on Bold Head and having secured a mining lease application (MLA) and surface rights is a very positive step towards developing Bold Head as a satellite deposit, further leveraging the new infrastructure developed at Dolphin.
The initial studies into the feasibility of the Bold Head Mine are encouraging, and it is planned to continue adding to the mine life through exploration and infill drilling. Future feasibility studies will investigate the opportunities to reduce mining capex and opex to enhance the value of both the Bold Head and Dolphin Mines.”
Group 6 Metals is an Australian resource explorer and developer focused on redeveloping the Dolphin Tungsten Mine on King Island in Tasmania. Initially, the company is focused on producing a ‘high-grade’ tungsten concentrate and plans to value-add the product for supply into the upstream tungsten industry.
Write to Harry Mulholland at Mining.com.au
Images: Group 6 Metals Ltd
