W Resources PLC (LON:WRES) said it successfully completed its plant improvement programme at the La Parrilla Mine in Spain, leading to improved efficiency and increased production of tin and tungsten concentrate.
The final phase of the programme included a planned closure in late January to enable the final stages to be implemented. The closure was initially planned to take four weeks, but was achieved in just two.
Concentrator plant recovery for tungsten in February was greater than 60%, a record high.
Tungsten and tin concentrate production in the first and second quarters is expected to be ahead of any previously reported quarter, despite unprecedented rainfall slowing progress in the first quarter, the company said.
In early February, the Extremadura region of Spain experienced the highest amount of rainfall recorded in the last seven years. Water levels at the historic mine pit adjacent to the mine were already unseasonably high and it became unsafe for the team to access higher-grade ore. The company decided to delay restarting production until mid-February, when the mine restarted.
"Notwithstanding this hurdle, the success of the plant improvement programme has been reinforced with expectations of Q1 production being the highest to date," W Resources said.
Steps are being taken to lower the water level and regain access to the higher-grade ore and the company hopes that these measures will create a permanent solution covering the life of the mine.
"With a stockpile of mid and lower level grade ore on site, processing will continue and the amount of concentrate expected to be produced in Q1 and Q2 2021 will be ahead of any previously reported quarter," it said.
The company has benefitted from robust prices for its concentrate this year. It shipped 20 tonnes of tin concentrate on March 1, benefitting from a 26% increase in the net price received versus the previous tin shipment.
Prices for Tungsten also remain robust, further highlighting the strength of the company's low-cost production, it said.
In the past two months it has shipped 20 tonnes of tungsten concentrate and expects to ship a further 20 tonnes of tungsten concentrate on March 8.
"It is frustrating that as we find ourselves on the cusp of seeing significant increases in the production of concentrate with much improved plant processing, we are denied access to our highest-grade ore due to high water levels," said chairman Michael Masterman.
"The team is working hard to resolve this and as soon as the water levels fall and we can safely access our higher-grade ore, we can then start to ramp-up to more significant growth in concentrate production."