W Resources PLC La Parrilla Update (9948Q)
03 Marzo 2021 - 1:21AM
UK Regulatory
TIDMWRES
RNS Number : 9948Q
W Resources PLC
03 March 2021
3 March 2021
W Resources Plc
("W" or the "Company")
La Parrilla Update
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining
company with assets in Spain and Portugal provides the following
update on the Plant Improvement Programme at the La Parrilla Mine
in Spain, which has now been successfully completed:
-- Improved efficiency and increased production of tin and tungsten concentrate
-- Concentrator plant recovery for tungsten during February was
greater than 60% - an all-time high
-- Despite unprecedented rainfall which has slowed Q1 progress,
tungsten and tin concentrate production in Q1 and Q2 2021 is
expected to be ahead of any previously reported quarter
-- Two shipments of 20t of tungsten concentrate completed and shipped in the past 2 months
-- One shipment of 20t of tin concentrate was shipped on 1 March
and this shipment benefited from a 26% increase in the net price
received vs the previous tin shipment.
-- One shipment of 20t of tungsten concentrate is due to be shipped on 8 March 2021
The Plant Improvement Programme at the La Parrilla Mine is now
complete. Following seven months of hard work by staff and
contractors, it has delivered significant plant improvements,
enhanced the workflow, improved efficiency and has increased
production of tungsten and tin concentrate from the mine. This is
evidenced by the increase in production of concentrate from July
2020 onwards, initially increasing on a pro-forma basis in Q3 2020
and then in absolute terms in Q4 2020.
The final phase of the Plant Improvement Programme included a
planned closure in late January to enable the final stages of the
Programme to be implemented. Whilst this was initially planned as a
four-week closure, the team and contractors accelerated the process
reducing this period to just two weeks.
As the final stages gained momentum, the La Parrilla Mine faced
very unseasonal weather conditions. During early February, the
Extremadura region of Spain experienced the highest amount of
rainfall recorded in the last seven years. This came at a time when
the water level of the historic mine pit adjacent to the mine was
already unseasonably high and as a result it became unsafe for the
team to access the higher-grade ore. As the team looked to resolve
this, the decision was taken to delay the recommencement of
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.
The management and operations team at La Parrilla are taking
steps to lower the water level and regain access to the
higher-grade ore and it is envisioned that these steps 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.
The Company is pleased to see that prices for its concentrate
have remained robust this year, in particular the price of tin
which sat in excess of US$26,100/t last week, which benefited the
sale of the latest 20t tin shipment. Tungsten remains robust at
cUS$250/mtu further highlighting the strength of our low-cost
production, which benefited recent tungsten shipments and those to
be shipped later in Q1.
Michael Masterman, Chairman of W Resources commented: "We are
clearly delighted to have completed our Plant Improvement Programme
and my gratitude goes to all our staff who have worked so hard to
make this happen. 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. 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."
Information communicated within this announcement is deemed to
constitute inside information as stipulated under the UK Market
Abuse Regulation. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
Enquiries:
W Resources Plc Grant Thornton UK LLP
Paul Hailes, CFO Colin Aaronson / Seamus Fricker
investor@wresources.com T: +44 (0) 20 7383 5100
www.wresources.com
Joint Broker Joint Broker
Turner Pope Investments (TPI) Alternative Resource Capital /
Ltd Shard Capital
Andy Thacker / Zoe Alexander Alex Wood
T: +44 (0) 203 657 0050 T:+44 (0) 20 7186 9004
www.turnerpope.com www.altrescap.com
Damon Heath
T:+44 (0) 20 7186 9952
www.shardcapital.com
Alma PR
Justine James
T: +44 (0) 20 3405 0205
M: +44 (0) 7525 324431
wres@almapr.co.uk
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