g6M Dolphin project

Group 6 Metals on track with construction works at Dolphin Tungsten Mine, Tasmania

Group 6 Metals (ASX:G6M) reports construction activities at its 100% owned Dolphin Tungsten Mine located on King Island in Tasmania is progressing without any hurdles.

As the company ramps up to peak construction activity on site at Dolphin, it reports that activities remain on track to achieve first concentrate production in Q1 2023.

Development of the overall site is progressing well, with the haul and access roads being further developed to improve access to the process plant area for mechanical installation works.

Group 6 Metals notes that the ROM pad earthworks and wall are progressing steadily, which are set 10m above the ground level of the process plant.

G6M earyhworks

The company reports that mechanical installation of the primary crushing circuit, screening, fine ore bin and associated conveyors are progressing rapidly.

The main process building has successfully been erected in preparation for completion of internal concrete works and equipment installation, and 80% of OEM equipment has been delivered to site, or the Gekko factory at Ballarat, and is currently being prepared for installation.

Commenting on the progress, Group 6 Metals Chief Executive Officer Keith McKnight said: “The Dolphin construction activities are progressing quickly and safely. To date, the project has achieved 205 Lost Time Incident Free days since the commencement of construction, which is a credit to our site management team and contractors.

Significant progress has been made on the mechanical installation for the process plant with installation of the ROM ore bin, crushing equipment, secondary screen, fine ore bin and associated conveyors being completed. The main process building has also been erected in preparation for installation of the concentrate dressing, drying and bagging equipment. Frontline have completed the low voltage underground cable installation for permanent power connection to the MCCs.

Vegetation clearing and earthworks for the TSF wall are well advanced, with the installation of the stage 1 walls having now commenced.

Market conditions remain very positive with Ammonium Paratungstate (APT) prices remaining high and demand for tungsten forecast to increase significantly in 2022. Due to high development and operating costs, several operating mines and proposed developments have either suspended operations or delayed development plans, which is expected to see supplies of WO3 remain tight in the near to medium term.”

G6M notes that it has entered into binding offtake agreements for up 65% of the forecast production over the first 4 years of the mine life, underwriting a significant proportion of the Company’s revenue over that period.

The company remains confident that the Dolphin Tungsten Mine has timed its re-start favourably, producing concentrate in Q1 2023 and reaching steady state production shortly afterwards.

Group 6 Metals is undertaking planning activities to mobilise a drill rig to King Island in October, to conduct a drill program comprising 3-4 diamond core holes to test the western margin of the Grassy Granite, north of the Investigator 21 Prospect.

Images: Group 6 Metals Limited
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.