The first shipment containing approximately 13 tonnes of tungsten concentrate has been produced from Group 6 Metals‘ flagship Dolphin Tungsten Mine in Tasmania, marking further significant success for the company.
The Dolphin Tungsten Mine on King Island, Tasmania, is owned and operated by Group 6 Metals Limited (ASX: G6M). The company today announced that is has just sent out its first delivery of tungsten concentrate. Offtake agreement payments begin upon concentrate shipment, and preparations are being made to set off the first blast in the resumption of open-cut mining.
The company said that tungsten concentrate averaging 69% WO3 was loaded at the Port of Grassy on King Island, with a total weight of about 13 tonnes. The consignment has a CIF value of about AU$0.3 million, and it is anticipated that 85 percent of the funds from the sales will be received the following week.
Group 6 Metals went on to say, the initial blasting on the north cut back of the Dolphin open cut mine has begun, and drilling to prepare for it has been underway for some time. The processing facility should expect an uptick in throughput and ore head grade upon receipt of run-of-mine ore in the first week of August. Group 6 Metals has reached a critical milestone on its path to becoming a leading global producer of tungsten concentrate with the start of commercial production and sales at the DTM.
Tungsten is considered a critical mineral by the European Union, the United Kingdom and the United States. Tungsten is an important mineral that is used in a wide range of industries like steelmaking, mining, building, electronics and defence. New uses in the battery making for Electric Vehicles and electronics industries, as well as the construction and mining industries, are likely to dramatically increase global demand for tungsten in the future years.
Keith McKnight, Managing Director and CEO of Group 6 Metals, stated:
The first shipment of tungsten concentrate and recognition of sales revenue is a major achievement for the DTM. 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.
