Group 6 Metals operational update at Dolphin Tungsten Mine

Group 6 Metals Limited (ASX:$G6M) has reported significant progress at its wholly-owned Dolphin Tungsten Mine (DTM) in Tasmania. The mine achieved a new daily ore processing record, processing over 1,000t of high-grade ore in 24 hours, marking a steady climb towards its nameplate production capacity. The concentrate production also increased by 112% month on month, reaching 60 dry tonnes in November 2023. The company is finalizing an optimized mine plan to bring tungsten production forward and has proceeded with an R&D Tax Incentive of $14.1M for processing by ATO.

Executive commentary on operational progress and future outlook

While June saw a promising start following the commissioning of the process plant, September proved challenging with unexpected mechanical issues. However, the team's dedication to stabilizing operations in October led to significant improvement in November. The mining team has identified opportunities to accelerate the extraction of ultra-high-grade open-cut ore, which will lead to a significant increase in concentrate volumes while requiring less ore to be processed. The company is excited to capitalize on this momentum and aims to achieve stable economic production by April 2024.

Summary of operational achievements and future prospects

Group 6 Metals has made substantial progress at the Dolphin Tungsten Mine, achieving new records in daily ore processing and concentrate production. The company's focus on optimizing the mine plan and improving recovery is expected to steadily increase head grade to an average of 1.1% WO3 by June 2024. The planned shutdown in early January for mechanical enhancements and repairs demonstrates proactive maintenance to enhance plant performance. With the anticipation of ultra-high-grade ore in the new year, the company aims to achieve stable economic production by April 2024. The global demand for tungsten is expected to grow significantly, and the company remains optimistic about the positive price trend for APT as inventories deplete into 2024.