Tungsten miner EQ Resources Ltd (ASX:EQR) has seen its share price rise more than 11% on news that the Mt Carbine project in north Queensland would be transitioning from a cost-plus to owner-operator mining operation during the month of August.
This, the company said, would enable cost savings, operational control and provide flexibility in terms of mining activity while also providing the opportunity for local workers employed by EQ to increase their skill base.
The cost-plus mining operation had been ongoing for 14 months, after EQ entered into a Mining Services Agreement with Golding Contractors Pty Ltd in May 2023.
According to the resulting contract, there would be two phases of mining work, with Phase 1 to occur over 12 to 18 months on a cost-plus basis, followed by a transition to rise and run matrix rates related to on fleet composition and material type.
However, after 14 months, EQ decided to finalise Phase 1 and shift to owner-operator style mining, following planning and evaluation which considered what would be the mine’s best operating model.
Chief Executive Officer Kevin MacNeill said he was thankful to Golding for carrying out the first phase of the mining contract and assisting in the move to owner-operator mining.
“Our teams have worked smoothly together over the past 14 months as we re-opened the Andy White open pit at Mt Carbine,” he said.
“Our existing staff and transferred staff have taken on board much of Golding’s mining expertise over that period, and we are thankful for Golding’s assistance in the transition to owner-operator mining.”
Mt Carbine – located 120 kilometres from Cairns – is a historic mine first discovered in the 19th century, and a major producer of tungsten in the 1970s and 1980s.
At 14:03 AEST, shares in EQ Resources were trading at 3.9 cents, a rise of 11.43% since the market opened.