Group 6 Metals (ASX: G6M) is targeting first tungsten concentrate from its Dolphin mine on Tasmania’s King Island for the March quarter next year (Q1 2023).
In a construction update, the company has reiterated development of the Dolphin tungsten mine is “progressing steadily” in line with the schedule.
Group 6 chief executive officer Keith McKnight said the company was “very pleased” with the progress made at the Dolphin site.
“The recent completion of the earthworks and commencement of civil works are hugely important activities that will allow Gekko to commence the process plant construction works.”
Mr McKnight said the steady development at Dolphin was made possible due to the company placing orders for major equipment mid-last year, which has ensured items have been delivered on time and on-budget.
He added this has also mitigated any “significant cost escalation” and delays.
Most of the major components are expected to be on-site by the end of next month, which Mr McKnight says will further de-risk the project schedule.
“The next six months will be a very busy time for the company and our team on the ground at Dolphin.”
“We look forward to regularly updating the market as we progress,” Mr McKnight added.
Dolphin site activity update
Mr McKnight noted the company had remained on schedule despite the challenging global environment, which has impacted the availability of materials and labour.
With process plant earthworks complete, installation of main haul roads and plant access roads are underway.
Meanwhile, civil works for the crushing circuit area are almost finished and will be handed over to Gekko Systems for mechanical installation activities before the end of the month.
Power for the site has been de-risked with the overhead power line connecting Dolphin to the island’s electrical grid installed.
Construction of accommodation buildings has begun, while work on the tailings storage facility is due to begin next month.
Tungsten is a critical mineral and demand remains robust in Europe and the US, while prices for tungsten concentrate continue to trend higher.
Group 6 expects the medium-to-longer term demand for tungsten will continue to be strong.