- Group 6 Metals (G6M) signs construction contract with Gekko Systems for the historical Dolphin mine which is located on King Island, Tasmania
- Under the contract, Gekko will design, construct and commission of the processing plant and related facilities for the redevelopment of the tungsten mine
- The contract is valued at $49 million and Group 6 expects to commission the facilities in the first quarter of 2023
- Earthworks are expected to begin in the first quarter of 2022
- Group 6 has ended the day up 6.67 per cent to trade at 16 cents per share
Group 6 Metals (G6M), formerly King Island Scheelite, has signed a construction contract with Gekko Systems for the Dolphin mine which located on King Island, Tasmania.
Under the contract, Gekko will design, construct and commission the processing plant and related facilities for the redevelopment of Group 6’s wholly-owned Dolphin mine.
The Dolphin Mine is a historical tungsten mine which operated between 1917 and 1992 and closed due to very low tungsten prices. It’s reported that at the time of closure, 50 per cent of the known resources was yet to be mined.
Group 6 Metals Executive Chairman Johann Jacobs commented on the contract.
“We have worked very closely and successfully with Gekko over a number of years, which has culminated in us being able to execute this substantial contract so soon after completion of the project’s financing,” he said.
“We look forward to continuing our working relationship with Gekko to ensure a
quality facility that is completed on time and within budget.”
Gekko Chair Elizabeth Lewis-Gray said this was a “critical resource development and an important project for regional Tasmania and Victoria.”
The contract is valued at around 49 million and Group 6 is expecting to commission the facilities in the first quarter of 2023. Based on this timing, the first shipment concentrate from the mine will also occur during the March quarter of 2023.
Following this contract, Group 6 is scheduled to start earthworks in the first quarter of next year.
Group 6 was up 6.67 per cent and ended the day at 16 cents per share.