Group 6 Metals dispatches first shipment of tungsten concentrate from Dolphin

Group 6 Metals (ASX:G6M) has dispatched its first shipment of tungsten concentrate from its Dolphin tungsten mine (DTM) on King Island, Tasmania.

The shipment was loaded at the Port of Grassy on King Island and contained around 13t of tungsten concentrate with an average grade of 69% tungsten trioxide.

The shipment is valued at $300k cost, insurance and freight (CIF) with 85% of the proceeds expected to be received next week.

Group 6 managing director and chief executive Keith McKnight said the first shipment is a major achievement for the company and the mine.

“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,” he said.

“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% tungsten trioxide.

“Once we commence processing of run-of-mine ore, we expect higher grade ore which increases concentrate production for the plant.”

Preparation for drilling and blasting is advancing well with drilling beginning for the initial blasting on the north cut back of the Dolphin open cut.

Run-of-mine ore is expected to be delivered to the plant in early August, increasing throughput and ore head grade to the plant.