W Resources PLC (LON:WRES) reported its highest quarterly tungsten concentrate production to date at 106.4t from the La Parrilla mine in Spain in the second quarter.
During the quarter, the company completed the construction of the first water dam, enabling it to access higher-grade ore once again, after heavy rain had hampered production in the preceding quarter.
"Whilst we faced further challenges due to the impact of having to build a 500,000m3 dam, we were pleased to complete the dewatering of the open pit on 24 June 2021 enabling us to safely regain access to the higher-grade ore,” said chairman Michael Masterman.
“The impact of lack of access to the higher-grade ore was somewhat mitigated with our tungsten recovery rates increasing from 32% to 47% enabling us to produce a record amount of tungsten concentrate in the quarter.”
Total contained metal from the mine jumped 47% from the first quarter to 81.8 dry metric tonnes in the second quarter. First-quarter output had been lower than expected due to heavy rain and high water levels.
The AIM-listed company also announced increased revenues (without providing details), bolstered by higher prices for tungsten and tin.
In June, W Resources achieved the highest monthly concentrate production to date (55.6t), even though the plant only restarted on 8 June, and the highest monthly recovery for both tungsten and tin at 56% and 50% respectively.
"We are now highly encouraged that we are making tangible progress having achieved our highest monthly production of concentrate in June 2021, notwithstanding this was in a three-week period,” said Masterman. “Looking ahead we now have access to a better quality and a better grade of ore which should see our production numbers increase towards our T2 target."
It expects a “significant improvement” in production during the second half of the year based on its progress towards the end of the second quarter and the start of the third quarter.
The company reiterated its production guidance of between 880t and 1,000t of concentrate for 2021.
It is looking to move towards an around the clock operation no later than the fourth quarter, subject to staff recruitment and training.