leadf
logo-loader
viewW Resources PLC
(
AIM:WRES
)

W Resources says first quarter production from La Parrilla mine hampered by heavy rain

Work is underway to reduce the high water levels at the mine and introduce a permanent solution to resolve this issue

W Resources PLC -

W Resources PLC (AIM:WRES) said first-quarter production from its La Parrilla mine in Spain was lower than expected as heavy rain restricted access to higher-grade ore, although output picked up last month.

Total tungsten and tin concentrate production fell 31% from the fourth quarter of 2020 to 92.4 dry metric tonnes (dmt). Tungsten concentrate output dropped 36% to 63.5dmt, while tin concentrate dipped 13% from the preceding quarter to 28.9dmt.

“Due to high water constraints, we did not have access to high grade ore areas and the ore that we used was of lower grade, less fresh and with high levels of ultrafines through much of March,” said chairman Michael Masterman.

“This has clearly impacted production, such that whilst production picked up towards the end of March, we did not achieve the record production we were anticipating for the quarter.”

The AIM-quoted company said work is underway to reduce the high water levels at the mine and introduce a permanent solution to resolve the issue. Once this work is completed, it will be able to access the high-grade ore bodies again.

During the quarter, the company successfully completed a plant improvement programme at the mine.

“The initial scheduled four-week closure for plant improvements was reduced to two weeks and recovery rates improved. Frustratingly, heavy rain hampered progress and for safety reasons we had no option but to halt production for an additional week,” Masterman said.

The plant improvement shutdown and the unseasonal weather restricted production in the first quarter to 45 days, compared to 52 days for the fourth quarter of 2020.

The plant operated mostly on a five-day week for 10 of the 13 weeks in the period, the company said, adding that it plans to return to a seven-day working week in the fourth quarter of 2021.

Going forward, Masterman said the quality of ore fed into the plant has improved in April, as has the production of concentrate.

The company expects annual production of concentrate to be between 880dmt and 1,000dmt.

Quick facts: W Resources PLC

Follow
AIM:WRES

Price: 6.4 GBX

Market Cap: £7.64 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

UK inflation jumps to record in August due to jump in food and drink prices

FTSE 100 edged lower as investors digested the government’s plans for dealing with a rise in coronavirus infections and the record hike in inflation last month. London’s blue chip index was down 3 points in early trades at 7,031. UK annual inflation surged to 3.2% in August, the biggest...

1 week, 1 day ago

2 min read