A Small update comparing the difference that EQRs xray ore...

A Small update comparing the difference that EQRs xray ore sorters make to their operation compared to G6Ms dolphin mine which does not utilise XRT sorters.

The recent announcement from EQR is that of installing a third xray sorter and news on recoveries based on xray sorting the new ore from the open pit. Straight from the ann:

"Over the past 12-months of operating and sorting the Low-Grade Stockpile (“LGS”) the Company has seen an average 10-12% mass yield from the feed to concentrate and has optimised the processing parameters to maximise tungsten recoveries. Since starting to process the primary ore from the Andy White Open Pit an increased mass yield ranging between 15-18% have been achieved, with stable WO3 recoveries above 95%."

What is being said here is that when 100 tonnes of Ore is processed via the XRT sorters 15%-18% of the 100 tonnes comes out containing 95%+ of the contained Tungsten. This XRT concentrate is then sent on to be processed in the processing plant and the remaining 82%-85% is sent directly to waste (quarry product)

Compare this to non XRT usage and it would simply be 100 tonnes of Ore sent on to be processed in the processing plant.

After XRT processing which is relatively cheap (Ore sorting cost $1.30/t vs $12.15/t for plant processing) EQR has 18tonnes to process.
This means we have 1.30x100 + 18x12.15 = $130+$218.7

So 100 tonne of ore costs EQR $348.7 to process.

From the bold head announcement we know G6M is factoring in a cost of $27/t (This is using a Power Cost of approximately HALF of what it is today, So we can expect the $27/t to be WAY HIGHER currently).

So 100 tonne of ore costs G6M $2700+ to process.(Id guess power is a huge component in a gravity based plant but I guess we will find out exactly what the numbers are for G6M in the next quarterly or two.)

Obviously this is a huge difference. G6Ms average grade is 0.9% vs EQRs at 0.3% which does make up some of the difference. But given the difference in stripping ratios for the LOMs 3.9(EQR) vs 10.3(G6M) that difference in Ore is pretty much wiped out.


There are 3 areas to consider I think:

Economic Grade- By utilising XRT sorters economic grades are a lot less. .08% for EQR vs .2% for G6M. This means what is waste for G6M is Ore for EQR.

Reduction in operating costs - The major benefit is the operating cost reduction as can be seen in the above example.

Lessening the impact of mining errors and processing issues - If a few extra tonnes of barren dirt finds its way into the ROM ore the XRT sorter will remove it at very little cost vs it being processed at high cost for zero benefit. And any issues that occur during plant processing it will only apply to a smaller amount of Ore due to 80% of the ore mass having already been removed.

The XRT sorters are one of the main reasons the IRRs are so drastically different between the two projects 28%(G6M) and 477%(EQR). Although with the 3%+ increased recoveries just announced and if that translates to a slightly higher percent concentrate which means slightly more payability for all contained tungsten EQRs IRR may move up slightly again.

GLTA