Australian explorer Group 6 Metals (ASX:G6M) has completed the first shipment of tungsten concentrate from its Dolphin Mine on King Island in Tasmania.
The $124.9 million market capitalisation company says 13 tonnes of tungsten concentrate with an average grade of 69% tungsten oxide (WO3) was loaded at the Port of Grassy for shipment.
The value of this shipment is estimated to be $300,000 cost, insurance, and freight (CIF), with 85% of the sales proceeds expected to be received next week.
With the first shipment completed, Group 6 Metals reports it is preparing to begin drilling and initial blasting on the north cut-back of the Dolphin open-cut mine.
Run of mine (ROM) ore is expected to be delivered to the plant in early August, which the company says will increase throughput and ore head grade to the plant.
Commenting on the first shipment, Group 6 Metals Chief Executive Officer (CEO) and Managing Director Keith McKnight says: “The first shipment of tungsten concentrate and recognition of sales revenue is a major achievement for the Dolphin Tungsten Mine (DTM). This is a significant step towards building cash flow to support the next phase of the company’s growth.
“This is a significant step towards building cash flow to support the next phase of the company’s growth”
We are very pleased with the performance of the plant, which is producing concentrate grade well above the target grade of 63%, considering the ore currently being processed is the lower-grade remnant ore at 0.3% WO3. Once we commence processing of ROM ore we expect higher-grade ore, which increases concentrate production for the plant.
Commercial sales at the DTM is well-timed as the tungsten price remains strong and global forecast demand for tungsten is growing. We look forward to announcing the first blast at the Dolphin Tungsten Mine, which will mark the restart of open-cut operations.”
On 11 July, Mining.com.au reported that Group 6 Metals raised $3.7 million through a share purchase plan to support Dolphin. Under this SPP, the company issued 26.583 million shares at $0.14 each.
Group 6 Metals is an Australian explorer focused on bringing its Dolphin Tungsten Mine on King Island, Tasmania, back into production. Once the mine is back online, the company aims to produce ‘high-grade’ tungsten for use in steelmaking, mining, construction, electronics, and defence applications.
Write to Harry Mulholland at Mining.com.au
Images: Group 6 Metals Ltd
