Wolf Minerals Limited (ASX:WLF) released a progress update at its Drakelands open pit mine at the company’s Hemerdon tungsten and tin project in Devon, southwest England, for the three month period to 31 December 2017.
Highlights are as follows:
- Tungsten concentrate production and sales up 22% and 36% respectively on the previous quarter.
- Operating turnaround plan activities largely complete and being incorporated into operating practices.
- Tungsten price improves further, currently US$315 per mtu.
- Discussions in progress regarding the required further funding support to reach steady state operating cash flows.
Richard Lucas, interim managing director, commented:
Another strong result for the third consecutive Quarter as the improvements from the operating turnaround plan are being realised, reflected by a further 22% increase in production and 36% increase in sales. The processing plant performance is benefitting from a more stable operating environment, allowing optimisation efforts to start building upon each other. We expect this to continue with further enhancements to our mine plan, the improvements from the gravity fines circuit and the return to 7 days operations.
The tungsten price has also continued from strength to strength as it again surged above US$300 per mtu both in Europe and China, with tight supply expected to continue supporting prices in 2018. In this encouraging business environment, the Company continues to receive support from key project stakeholders as it heads towards self-sustaining operations, with negotiations in progress on the further funding required to ensure completion of the successful efforts to date.