Group 6 Metals Advances Dolphin Tungsten Mine Redevelopment Project

Tungsten producer Group 6 Metals (ASX: G6M) is reopening its Dolphin tungsten mine at King Island off Tasmania and hopes to start producing concentrate early next year as planned.

In its latest quarterly activity report, the company said it overcame equipment supply chain challenges to secure a late January delivery date for the bulldozer, and that earthworks on-site at the processing plant are now nearing completion. The engineering, procurement, and construction (EPC) contract with Gekko Systems will commence in May with the start of mechanical work on site.

Group 6 recognizes the impact of the new crown on the construction industry and has taken mitigating measures to minimize delays, including early commitments for long projects. It is also preparing other ways to compensate for the timing of the project schedule due to the later than expected start of civil works.

This includes the renovation of the recently purchased house, and additional temporary accommodation units will be shipped out next month. group 6 has strengthened its environmental, social, and governance (ESG) commitment to the Dolphin mine after receiving several regulatory approvals and commitments to land conservation conventions.

The Tasmanian Government has awarded a $2 million grant to Hydro Australia to upgrade the capacity of the 11kV line to the Dolphin Tungsten Mine, which will provide the mine with power from the Kings Island grid for construction and mining operations.

Also during the quarter, the Company appointed Keith McKnight as Chief Executive Officer and Megan McPherson as Chief Financial Officer and Corporate Secretary and welcomed several new members to its on-site management team. As of March 31, 2022, Group 6 Metals held $20.8 million in cash, and had a $10.0 million debt balance and $32.5 million in undrawn debt facilities.

Group 6 Metals is moving forward with the redevelopment of the historic Dolphin Tungsten Mine, located on King Island in Tasmania, which has been closed since 1992. The ASX-listed company has begun construction of the mine and is on track to begin production in the first quarter of 2023.

The Dolphin Mine has the largest tungsten deposit in the western world. The price of tungsten has also risen dramatically and is now classified as an important mineral by the Australian government as well as other countries around the world.

In recent years, Group 6 Metals has optimized its redevelopment strategy for the Dolphin Tungsten Mine, which has 4.43 million tonnes of JORC 2012 compliant mineral reserves grading 0.92% WO₃ (0.2% WO₃ marginal grade for open pit mining and 0.7% WO₃ grade for underground mining). Mineral Resources, including the Mineral Reserves, total 9.6Mt at a grade of 0.90% WO₃ (at 0.2% WO₃ cut-off).

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