Group 6 Metals receives government grant to explore around Dolphin tungsten mine

Group 6 Metals ASX G6M Awarded EDGI Grant Exploration Drilling Grant Initiative Dolphin Tungsten Mine King Island
The Tasmanian government is co-funding exploration of Group 6 Metals’ Investigator 21 and 24 tungsten prospects on King Island.

As Group 6 Metals (ASX: G6M) forges ahead with construction activities at its Dolphin tungsten mine in Tasmania, it has just received a grant from the state government to explore a significant area around the mining lease with hopes to add resources to the project.

The emerging producer today revealed it has been awarded two grants totalling $75,000 by the Tasmanian Government through the Exploration Drilling Grant Initiative (EDGI) to drill at exploration licence EL19/2001, which surrounds the Dolphin lease on King Island and contains the Investigator 21 and 24 prospects.

The EDGI grants will fund 50% of direct drilling costs associated with the company’s planned exploration program, which involves a four-hole diamond drilling program to test new conceptual extensions along strike of the previously confirmed tungsten mineralisation.

Group 6 Metals chief executive officer Keith McKnight said the company is pleased to receive this financial support from the state government.

“The Investigator prospects are located approximately 6km west of the Dolphin tungsten mine and drilling completed by the company at Investigator 21 in 2018 identified similar mineralisation to the mine, with one significant intersection of 3.3m at 1.7% tungsten trioxide,” he added.

The company hopes the “relatively underexplored” 67-square-kilometre exploration area can add resources to the mine, which already has confirmed reserves for 14 years of mine life.

Drilling program to start in October

Under the timing requirements of the grants, Group 6 Metals plans to mobilise a drill rig to King Island in October to complete the program.

Three diamond drill holes, spaced 100m apart, will test the western margin of the Grassy Granite at the Investigator 24 prospect and one will be drilled north of the Investigator 21 prospect, to investigate the stratigraphic and structural relationships midway between Investigator 21 and its neighbouring Investigator 22 prospect.

Group 6 Metals noted further infill and extension drilling would be required to determine if sufficient mineralisation is present for the estimation of mineral resources and reserves.

First tungsten production in 2023

Meanwhile, construction activities at the Dolphin mine are progressing steadily with tungsten production on track to begin in the first quarter of 2023.

In its June quarter report released late last week, Group 6 Metals said most of the remaining OEM equipment and materials are expected to arrive on site by early August ahead of process plant installation works.

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