Australia’s primary tungsten supply could soon be boosted as Group 6 Metals raises US$30M (AU$44M) which will bolster the start of tungsten concentrate production at the Dolphin Tungsten Mine

Group 6 Metals (G6M), the owners and operators of the Dolphin Tungsten mine, have raised US$30M (AU$44M) which will ensure progress towards first concentrate production. The US$30M received is comprised of US$27M as part of a placement, of which 69% of the total placement can be accounted for by the top four shareholders of the project, and US$3M as underwriting for a Share Purchase Plan, where shares were sold at US$0.14c (AU$0.21c) per share. The capital raised will add value to further progress towards the development of mineral resources, construction of the processing plant, commissioning of the mine, and ramp-up towards steady-state production.

The Dolphin operations consist of an open-pit tungsten mine and a processing plant located near the town of Grassy on the east coast of King Island in Tasmania, Australia. The mine is a historical tungsten producer which operated sporadically from 1917 to 1990. It is estimated that 50% of the mine's resources are unexplored and some of the funds raised will be used towards the exploration and expansion of the current resources. Currently, the mine has a total mineral resource estimate of 9.6Mt with a grade of 0.90% WO₃ which includes a mineral reserve of 4.4Mt at 0.92% WO₃. A feasibility study has been completed on the mineral reserves of the mine estimating a 13-year life of mine outlined by three stages. Stage one sees open-cut mining from commencement to year 6 producing 386ktpy ore which translates to 1.92kt of WO_3. Stage two, years 6 to 11, sees underground mining targeting high-grade ores producing 264ktpy at 3.14kt of WO_3. And stage three, years 11 to 13, sees open-cut closing pit mining producing 425ktpy at 2.95kt of WO₃.

G6M has secured tungsten concentrate offtake agreements with Wolfram Bergbau and Hütten, a processor and refiner of tungsten in Austria, which will receive 350tpy of WO3 concentrate for four years and Traxys, a commodity trader headquartered in Luxembourg, which will receive 825tpy for four years.

G6M started initial mining operations in March of 2023. Mining operations consist of a fleet of trucks and shovels with the main aim to remove overburden and recover near-surface ore The processing plant at Dolphin is not operational yet, however, the installation is completed, and the first shipment is expected in June 2023.

Project Blue expects the tungsten market to steadily grow over the next 10 years with demand for cemented carbides and their applications in the automotive, machining, mining, and oil and gas industries being the main driver. China dominates tungsten supply with >58% production in any given year over the last 10 years. Due to tungsten’s importance in so many industries and sectors, the West is constantly looking for alternative tungsten supply. The commissioning of the Dolphin Mine will provide an alternative source to China and help supply the ever-increasing demand for tungsten.