W Resources PLC (AIM:WRES) announced record tungsten recovery rates, grades and production in the third quarter from the La Parrilla mine in Spain and expects output in the fourth quarter to be even better.
The AIM-quoted company said the tungsten recovery rate was 58%, up from 47% in the second quarter, although tin recovery fell from 27% to 23%. Tungsten concentrate recovery grades were 66.7%, up 3% versus the second quarter.
Tungsten production jumped 58% from the preceding quarter to 168.3 tonnes but was impacted by a number of challenges which resulted in an estimated production loss of about 40 tonnes of tungsten concentrate.
A number of power outages were caused by technical problems with the liquefied natural gas (LNG) generators. This was resolved by the supplier and W Resources will install an additional connection to the grid power supply to mitigate against future power outages. This is expected to be finalised in 2022 and will supply sufficient electricity to power the entire plant.
"Q3 2021 was our best performing quarter to date and we expect to see this growth continue as we head towards the end of the year,” said chairman Michael Masterman. “Notwithstanding a number of challenges towards the end of the quarter, the result is testament to the management team at the La Parrilla mine which reacted quickly to minimise any disruption.”
"In September, the Extremadura region of Spain, where the La Parrilla mine is located, experienced torrential rain fall for a period of time. Although the mine continued to work, production did slow due to the wet feed being fed into the plant. The team at La Parrilla is looking to introduce a silo to hold a minimum of one weeks' supply of dry stock which should negate the problems caused by similar flash flooding.
"Work at the mine has continued with new staff recruited and the introduction of a 24 / 7 operation seeing activities increase throughout the mine. In Q3 2021, work commenced on the second water dam which we expect will be completed in November 2021 and will serve to protect the mine from further water issues.
"Work continues apace and the La Parrilla team has a clear focus on increasing production and efficiencies as the reality of continuous production becomes the norm."
Eleven shipments of concentrate were made during the third quarter, almost double the number made in the second quarter. These comprised of nine tungsten concentrate shipments, totalling 180 tonnes, and two tin concentrate shipments, totalling 40.8 tonnes.
The months of August and September were both EBITDA positive for W's operating subsidiary, Iberian Resources Spain (IRS), and W Resources expects the fourth quarter to be EBITDA positive as well for IRS with the mine at La Parrilla increasing production as the quarter progresses.