Steel Focus

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The 269th Sydney Mining Club – Leading Edge
at 5:15 pm on 7 July 2022 at the Establishment Ballroom

Steel Focus

Presenting CEO of Group 6 Metals Keith McKnight, CEO of EQ Resources Kevin MacNeill and Study Director at Magnetite Mines Trevor Thomas

Group 6 Metals (ASX:G6M)

Group 6 Metals is developing the highest-grade tungsten deposit in the western world at King Island in north-western Tasmania, an island typically known for its world-class cheese and lobster.

The company is recommissioning and expanding the old Dolphin Mine which operated for 75 years until its 1992 closure due to low tungsten prices. The Dolphin mine boasts a 14-year mine life with significant exploration upside. Production of tungsten concentrate from Group 6’s processing plant is planned for the first quarter of 2023.

Mining will commence via an eight-year expansion of the existing open cut mine which hold 2.9 million tonnes at 0.76% tungsten trioxide with a 0.2% cut off grade. After this, Group 6 will move underground to mine 1.5 million tonnes of ore at 1.24% tungsten trioxide with a 0.7% cut off grade.

With 70% offtake agreements secured, pH neutral and non-acid forming overburden rock, convenient port facilities, and prices set to rise given tungsten’s critical application in aeronautics, armaments and steel hardening; Group 6 is well positioned to be one of Australia’s key critical mineral producers.

 

EQ Resources (ASX:EQR)

EQ Resources is set to become a pre-eminent Australian tungsten producer by leveraging advanced technology, historical stockpiles, and unexploited resources at its Mt Carbine resource in North Queensland.

Discovered at the end of the 19th century and in large-scale production during the 1970s and 80s, Mt Carbine is still relatively unexplored with considerable exploration potential. To bring the resource back to production, EQ has completed UG environmental approvals, a bankable feasibility study ana upgrade of its gravity and crushing plants. Processing of the mineralised stockpile on site has already begun.

Over the next 12-24 months, EQ will ramp up its production from 500-650 tonnes a year to 3000-8000 tonnes, following which underground mining and the construction of an additional open pit will begin.

EQ has also established mine-to-ship logistics chain to ensure the project remains scalable and reliable over its multi-decade life and signed binding off-take agreement with strategically aligned global commodity trader CRONIMET.

 

Magnetite Mines (ASX:MGT)

Magnetite Mines is putting South Australia on the map as a world-class iron ore exporter by developing its 5.7 billion tonne magnetite iron ore resource in the Braemar region of South Australia.

The company will produce a premium high-grade iron ore concentrate at about 68% iron, which will attract a premium of up to US$50/tonne on the 62% Fe benchmark iron ore price.

These premiums are a product of high-grade magnetite iron ore using less energy and reducing emissions in steelmaking by up to 30%. Iron ore grades are also declining around the world, indicating a positive demand outlook for the company’s product in the long-term.

The company plans to deliver its first ore to Port Adelaide in late 2024/early 2025 and capitalise upon the unique geographical advantages of its Razorback resource including resource outcrops that allow minimal stripping, a location close to heavy rail and existing iron ore ports, and the availability of high-voltage grid power with a significant renewable energy component.

 

Not to be missed!

Welcome Drinks
17:15

Have a drink and finger food while you re-connect with friends and colleagues from the club. Relax and unwind before sitting down to hear our speakers.

  • Julian Malnic
Introduction by Julain Malnic, Chairman
17:45

Julian welcomes the members to the event, gives us a run-down on any mining and resources news since the last event and introduces the speakers.

Chairman, Sydney Mining Club
  • Keith McKnight
Group 6 Metals
18:00

Group 6 Metals is building a mine on the highest-grade tungsten deposit in the western world at King Island in the Bass Strait, an island typically better known for its world-class cheese and lobster. The new and large scale mine is being built over the historic Dolphin Mine which operated for 75 years until its 1992 closure because of plunging tungsten prices. Dolphin has a 14-year mine life with significant exploration upside for underground. First tungsten concentrate from Group 6’s processing plant is expected Q1, 2023. The new open cut mine will tackle 2.9 million tonnes of 0.76% tungsten trioxide at a 0.2% cut off grade. After this Group 6 plans to move underground to mine higher grade ore, a 1.5 million tonnes at 1.24% tungsten trioxide with a 0.7% cut off grade. With 70% offtake agreements secured, non-acid forming overburden rock, convenient port facilities, and prices set to rise given tungsten’s critical application in aeronautics, armaments and steel hardening; Group 6 is well positioned to be one of Australia’s new crop of critical mineral producers.

  • Kevin MacNeill
EQ Resources
18:20

EQ Resources is transforming its flagship tungsten assets at Mt Carbine in North Queensland by leveraging advanced technology, historical stockpiles, and unexploited resources to become the pre-eminent tungsten producer in Australia. Discovered at the end of the 19th century and in large-scale production during the 1970s and 80s, Mt Carbine is still relatively unexplored with considerable exploration potential for new tungsten mineralisation in the Mining Leases and surrounding exploration tenements. To bring the resource back to production, EQ has completed UG environmental approvals, a bankable feasibility study and commenced an upgrade of its gravity and crushing plants. Processing of the mineralised stockpile on site has already begun. Within the next 12-24 months, the company will ramp up its production from 500-650 tonnes a year to 3000-8000 tonnes following upgrades to its power supply and XRT sorter. These volumes will yield a pre-tax cash flow by 2025 of circa $95 million, following which underground mining and additional open pit will be pursued. Please note the open pit only holds 14.4% of the resource. EQ has also established mine-to-ship logistics chain to ensure the project remains scalable and reliable over its multi-decade life and signed binding off-take agreement with strategically aligned global commodity trader CRONIMET. Although Mt Carbine is EQ’s primary focus, the company also holds gold exploration licences in New South Wales, at Panama Hat (Broken Hill) and Crow Mountain.

  • Trevor Thomas
Magnetite Mines
18:40

Magnetite Mines is putting South Australia on the map as a world-class iron ore exporter by developing its 5.7 billion tonne magnetite iron ore resource in the Braemar region of South Australia. The company will produce a premium high-grade iron ore concentrate at about 68% iron, which will attract a premium of up to US$50/tonne on the 62% Fe benchmark iron ore price. These premiums are a product of high-grade magnetite iron ore using less energy and reducing emissions in steelmaking by up to 30%. Iron ore grades are also declining around the world, indicating a positive demand outlook for the company’s product in the long-term. The company plans to deliver its first ore to Port Adelaide in late 2024/early 2025 and capitalise upon the unique geographical advantages of its Razorback resource including resource outcrops that allow minimal stripping, a location close to heavy rail and existing iron ore ports, and the availability of high-voltage grid power with a significant renewable energy component.

Study Director
Julian Malnic

Julian Malnic

Chairman, Sydney Mining Club
Trevor Thomas

Trevor Thomas

Study Director

    Event Detail

    7 July 2022 5:15 pm
    7 July 2022 8:15 pm
    Ballroom
    252 George Street Sydney NSW 2000 Australia

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