W Resources (WRES LN) 0.415p, Mkt Cap £25.0m –La Parilla moving towards production from new concentrator
• W Resources reports that it expecting the new concentrator plant at La Parilla to deliver its first production during the September quarter.
• The “team is completing the final electrical connections in the lead up to full commissioning of the large-scale Concentrator Plant.” In the meantime, processing through the existing plant at La Parilla, has reached 19.8 tonnes of concentrate, comprising 16 tonnes of tungsten concentrate and 3.8 tonnes of tin concentrate.
• The company confirms that this is “slightly lower than earlier guidance of 20t WO3 concentrate, reflecting the constraints on efficient pre-concentrate movement between plants and, in particular, due to the limitations of the old Concentrator Plant which was designed for tailings and not ore feed”.
• On the positive side, however, operating the old plant has “provided critical information to enhance and fine-tune the performance of the new large-scale Concentrator Plant”.
• Among the enhancements resulting from this work the company cites its purchase of a further “72 spirals from the Wolf Minerals Limited ("Wolf Minerals") liquidator and expanded the spirals' processing capacity at La Parrilla at very limited cost”.
• We observe that, despite past optimism that Wolf Minerals’ Drakelands tungsten mine in Devon might reopen under new ownership, the sale of some of the processing equipment may be an indication that this outcome may be proving difficult to achieve, at least in the short term.
• Commenting on the progress at La Parilla, where he said that “The team has delivered a fantastic mine, at low-cost”, Chairman, Michael Masterman, explained that “Production from the old Concentrator Plant was below expectations in July, but importantly is greatly assisting with the enhancement of the new large-scale Concentrator Plant, which has been designed for full scale operation. We are close to finalising this process and the priority is that the commissioning is completed thoroughly”.